What does ppp industry fund mean?
Industrial investment fund is a collective investment system that provides equity investment and management services to unlisted enterprises, that is, fund companies are established by issuing fund shares to most investors, and the fund companies act as fund managers or entrust fund managers to manage fund assets, and entrust fund custodians to manage fund assets and engage in industrial investments such as venture capital, enterprise restructuring investment and infrastructure investment.
According to different investment fields, industrial investment funds can be divided into venture capital funds, enterprise restructuring investment funds, infrastructure investment funds and other categories.
The role of PPP industrial fund:
Industrial investment fund is essentially a financing medium. By setting up funds to attract social capital to participate in the construction and operation of infrastructure projects in the form of equity, the government can solve three problems for local governments:
(1) Solve the financing problem of new projects.
For new projects, the government can introduce parent funds to attract financial institutions such as banks and insurance and industrial capital to provide the funds needed for project construction, so as to solve the problem of insufficient construction funds at present.
(2) Solve the debt problem of stock projects.
For existing projects, project companies established by industrial investment funds can take over specific project operations through TOT and ROT. Especially for BT projects in the repurchase period, the original payment period of the government is three to five years. After the industrial fund is involved in the project, the government subsidy or payment period can be extended to ten years or even longer by granting franchise, which greatly reduces the short-term debt repayment pressure of local governments.
(3) Solve the asset-liability constraint problem of the city investment company.
In the past, most infrastructure projects were financed, constructed and operated by local city investment companies. The direct financing of city investment companies will lead to the expansion of the balance sheet, increase the asset-liability ratio of city investment companies, and then affect the bank loans and bond issuance of enterprises. By initiating the establishment of an industrial investment fund, the city investment company raises funds in the form of funds to realize off-balance sheet financing and reduce the asset-liability ratio of the city investment company.
Under the traditional platform investment and financing mode, local governments take their own credit as the implicit guarantee of platform companies' investment and financing projects. Under the mode of industrial investment fund, local finance participates in investment and financing projects and franchise projects with a small proportion of equity, and collects carried interest, which is helpful to solve the financing problem of local infrastructure and improve the efficiency of financial funds.