What does the liquidation of private equity fund mean?

Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. The liquidation time is stipulated in the fund contract when the fund is established. The holders' meeting may modify the fund contract and decide the liquidation time of the fund.

Liquidation generally has the following reasons:

1, the product expires;

2. Adjustment of business structure;

3. Touch the liquidation line;

4. Active liquidation due to poor performance.

Extended data:

Strict capital settlement

Article 44 of the Measures for the Operation and Management of Securities Investment Funds promulgated in 2004 stipulates that if the number of fund share holders is less than 200 or the net asset value of the fund is less than 50 million yuan after the fund contract of an open-end fund comes into effect, the fund manager shall report to the China Securities Regulatory Commission in time; If the above situation occurs for 20 consecutive working days, the fund manager shall explain the reasons and submit the solution to the China Securities Regulatory Commission.

Based solely on the net value, due to the impact of splitting or dividends, it is not excluded that the net assets of individual funds are close to or below 50 million yuan. Even if the size of the fund once fell below 50 million yuan, as long as it did not appear for 60 consecutive days, it did not meet the conditions for liquidation.

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