Passive institutional investors (such as official pension fund pools and insurance companies) may invest in private equity investment funds, which are then managed by investment companies and invested in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms.
Private equity investment funds usually control the management of the companies they invest in and often introduce new management teams to enhance the company's value. Private equity investment companies mainly exit and get the return on investment in three ways: initial public offering (IPO), selling the company or merging with other companies, or recapitalizing the company.
Unlisted stocks can be directly sold to investors (private placement) or other private equity investment funds specializing in secondary acquisitions. In 2005, it was estimated that the global private equity investment was $654.38+03.5 billion, an increase of one-fifth over the previous year, because the confidence in the global acquisition market increased.
Among them, the proportion of purchasing funds has gradually increased from one-fifth to two-thirds, while the proportion of early investment and venture capital has gradually decreased.
privately offered fund
Private equity fund, also known as private equity investment fund, is an asset pool used by private equity investment companies to invest. The main organizational form of private equity investment fund is limited partnership, and private equity investment company is the general partner.
The fund as a whole exists as a limited partnership, while the private equity investment company acts as a general partner. Funds mainly raise funds from other investors, including pension funds, financial institutions and wealthy individuals.
These investors become passive limited partners in fund partnership organizations. When the general partner finds a suitable investment opportunity, he will inform these limited partners and ask them to bear a certain proportion of the investment quota, but all investment decisions are made by the general partner.
Under normal circumstances, the duration of the fund is ten years, during which 15 to 25 different investments will be made, and the amount of each investment shall not exceed 10% of the total fund.