The difference between corporate private equity fund and corporate fund;
However, the establishment procedures of corporate private equity funds are the same as those of ordinary joint-stock companies, and the legal person structure is the same as that of ordinary companies, including shareholders' meeting, board of directors and board of supervisors. However, the management structure of corporate private equity funds is quite different from that of ordinary companies: first, corporate private equity funds have no management institutions, but entrust professional investment management institutions or external professional teams to manage their operations, and the company is transformed into a fund. Secondly, the company's funds are also entrusted to professional custodians to facilitate the monitoring of the inflow and outflow of funds.
Advantages of enterprise private equity fund;
1. Standardized management guarantees the legitimate rights and interests of investors.
Corporate private equity funds have a perfect modern enterprise management system, including shareholders' meeting, board of directors and board of supervisors. Through the corresponding power allocation and checks and balances of these three institutions, the company can serve the interests of shareholders to the greatest extent, so the characteristics of management norms are obvious.
2. Strong assets and low operating pressure.
Corporate private equity funds have legal personality and operate in accordance with the articles of association and business model of joint-stock companies. According to the needs of business development, corporate private equity funds can expand the fund scale by increasing capital and shares, and can also raise funds from banks through conventional channels within the permitted scope. The company has strong sustainable development ability.
3. Steady investment is conducive to long-term investment.
The investment style of enterprise private equity funds is steady and the decision-making is cautious. The management and operation team consists of project managers, who lead their investment teams to carry out project excavation and industry research, and submit reports to the fund management and operation team through basic work such as layer-by-layer screening, investment index report evaluation and enterprise field research. After careful verification and investigation, the fund management and operation team formed an investment proposal and finally submitted it to the board of directors for investment resolution. This decision-making system, which checks at different levels and reports step by step, ensures the scientificity and robustness of investment decision-making and is conducive to long-term investment.
Disadvantages of enterprise private equity fund:
The biggest drawback of the company's private equity fund is repeated taxation: the company has to pay all kinds of taxes and fees in the name of the company, and shareholders have to pay the personal income tax brought by dividends in their own names. To some extent, this not only inhibits the investment enthusiasm of shareholders, but also limits the scale effect of joint-stock investment companies.