Private equity fund is the behavior of qualified investors to raise funds within a specific range. The issuance of private equity funds usually requires corresponding qualifications and supervision by securities regulatory agencies. The following is a small collection of how to raise funds to set up private equity funds. Welcome to read and share. I hope you will like it.
How to raise funds to set up private equity funds
First, private equity funds raise funds in a private way. In the United States, children's funds and pension funds in Public Offering of Fund generally attract customers by advertising through public media. According to relevant regulations, private equity funds are not allowed to use any media to advertise, and their participants mainly join through so-called "reliable investment information" or direct knowledge of fund managers.
Secondly, in terms of fundraising targets, private equity funds are only targeted at a few specific investors, and the circle is small but not low. For example, in the United States, hedge funds have very strict regulations on participants: if they participate in the name of individuals, their annual income in the last two years will be at least $200,000; If you participate in the name of the family, the family's income in the past two years is at least 300,000 US dollars; If you participate in the name of an institution, its net assets will be at least $6,543,800+0,000, and the number of participants will be limited accordingly. Therefore, the investment goal of private equity funds is very strong, which is more like an investment service product tailored for middle-class investors.
Third, unlike Public Offering of Fund's strict information disclosure requirements, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more hidden, the operation is more flexible, and the chances of obtaining high returns are correspondingly greater.
In addition, a notable feature of private equity funds is that fund sponsors and managers must invest their own funds into fund management companies, and the success of fund operation is closely related to their own interests. Judging from the current international practice, fund managers generally hold 3%-5% of the shares of the fund. In case of loss, the shares owned by the manager will be used to pay the participants first. Therefore, the promoters, managers and funds of private equity funds are as close as lips and teeth, and honor and disgrace are integrated with the interests of * * * *, which also solves the inherent weakness of managers' interests and incentive mechanism in Public Offering of Fund to some extent.
How do individuals create private equity funds?
1. Requirements of private equity funds for investors' economic strength: Requirements for individuals: The investment amount of a single fund is not less than1million, the net assets exceed 3 million, and the average annual income in the last three years is more than 500,000. Requirements for institutions: net assets exceed10 million. Second, the requirements for the number of private equity funds: the reason why private equity is private equity is because funds are only open to specific people. The way to raise funds is for fund sponsors to raise funds privately. According to the provisions of the Securities Investment Fund Law, the Company Law and the Partnership Enterprise Law, the number of investors in partnership enterprises and limited company funds shall not be higher than 50; The number of contract funds and joint-stock company funds shall not exceed 200. Three. Fund issuance conditions: 1. Only managers who have completed the filing with the China Fund Industry Association are eligible to issue funds. 2. You can buy an investment company and apply for the registration and issuance of fund products after completing the application for private equity fund license. 3. If you don't want to buy it, you can entrust the manager to issue it. However, due to the different scales of the manager's institutions, if you are not familiar with the industry, it will have a direct impact on the interests of investors.
How do individuals participate in private equity funds?
Choose a fund that suits your investment preferences. For example, for more radical investors, you can choose medium and high-risk funds, and for more stable investors, you can consider medium and low-risk funds.
Choose a fund with strong management ability of the fund manager, and the trend of the fund is often better.
If you choose a fund with a low valuation, the lower the valuation, the smaller the bubble, and the smaller the risk that investors bear. At the same time, funds with lower valuations have more room for growth in the later period.
When investors buy funds, they should set stop-loss and profit-taking positions to control their risks.
Who can buy private equity funds?
Private equity funds are investment tools for high-net-worth individuals, so wealthy high-net-worth individuals are often the main buyers of private equity funds.
High net worth individuals are more likely to buy private equity funds for the following reasons.
First of all, high-net-worth people have certain advantages in wealth accumulation. They have high investment ability and rich sources of funds.
This enables them to invest in private equity funds, which also means that they have relatively high risk tolerance.
Secondly, compared with traditional investment channels, the risk-return ratio of private equity funds is higher.
For high-net-worth people who pursue high returns, private equity funds provide more investment opportunities and richer return potential, thus attracting their attention and purchase.
Finally, private equity funds have certain advantages in investment strategy and flexibility.
High-net-worth people usually have strong personalized needs in financial planning, and they hope to achieve personalized investment objectives and risk control through private equity funds.
Therefore, the flexible investment strategy and product characteristics of private equity funds can meet their personalized investment needs.
What is a private equity fund?
Legal analysis: The definition of private equity fund refers to the investment fund set up in People's Republic of China (PRC) by raising funds from investors in a non-public way. The investment of private equity fund property includes buying and selling stocks, equity, bonds, futures, options, fund shares and other investment targets agreed in investment contracts.
Private equity fund is a fund financing product that collects funds from qualified investors in a non-public way and takes qualified assets such as equity, stocks, bonds and futures options as investment targets.
Private placement fund refers to a securities investment fund that raises funds from specific investors in a non-public way and invests in specific objects.
Private equity funds are the makers of the stock market, washing dishes, ship pulled, smashing dishes, and earning a lot of money. Once you follow or participate, you are on the highway to make money.