Is pe equity investment fund risky? Is there any risk? What about pe equity investment fund? What are there?
What exactly does PE/VC mean in private equity investment?
VC means venturecapital investment, which refers to the investment behavior of venture capital companies to invest the raised funds in industries and industries that they think can make money.
PE is short for PrivateEquityFund. It is an investment institution that raises funds from specific people or unspecified people with less than 200 employees, mainly invests in the equity of unlisted enterprises in the form of equity investment, thus injecting capital and management experience into unlisted enterprises, promoting the value growth of unlisted enterprises, and finally withdrawing through listing, mergers and acquisitions, equity replacement, etc.
Characteristics of PE investment:
The first is that the investment cycle is very long. Whether it is stocks or real estate, investors will not hold it for a long time. And PE investment generally takes five to seven years.
Secondly, the amount of PE investment is large. For example, we cooperated with Safran Fund to raise a PE investment product with a threshold of100000 yuan.
Another is that the risk is particularly high. Because the final expected annualized expected return of PE investment mainly depends on acquisition, merger and listing. Among them, there are many variables and great fluctuations. Coupled with the long investment cycle, PE investment is risky.
However, the potential expected annualized expected return of PE investment is also very high, which may reach several times or even ten times.
Because PE investment is still a new investment field in China, PE investment companies have little experience, investment style is still in the process of formation, and personnel changes are great, which makes the asset management level of PE investment companies uneven.
As a new and alternative high-risk investment, private equity investment has distinct characteristics. First of all, PE investment takes the form of non-public private placement, attracting only a few institutions and individuals to participate.
Secondly, PE investment lasts for a long time and lacks an open trading market. This feature determines that the liquidity of PE investment is poor, and it is only suitable for idle funds of high-net-worth customers, such as investing with 5%- 10% of total assets. But for investors, the autonomy of PE investment is not strong: after the establishment of PE investment fund, it will be completely handed over to the professional team (GP, that is, GeneralPartner) for investment management, which is a complete trust and authorization for the professional team.
Risk warning:
Due to the private nature of PE investment, traditional PE investment is not very dependent on bank channels. With the entry of PE investment into China, the demand of some overseas PE investment institutions to set up RMB funds is increasing, which will inevitably lead to the pursuit of high-net-worth customers, and private banking customers are undoubtedly the best candidates. From the perspective of providing asset allocation services for high-end customers, banks have also launched PE investment projects for such products to high-end customers in a timely manner. However, this threshold is relatively high, generally only for customers with total financial assets of more than 50 million yuan.