5 thoughts on “bronze jewelry findings wholesale What is the difference between private equity and venture capital”
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jewelry materials wholesale 1. Different investment objects 1. Private equity: The investment targets of private equity companies are usually in the rapid expansion stage of 1/4 to 1/2. Compared with venture capital, private equity companies value short -term profitability, and they pay more attention to being in the market. At the mature stage, these companies often have business models that have been affirmed and verified by the market. 2, venture capital: The investment objects of venture capital are usually in the start -up period. The company is in a slow growth stage of companies with positive profit to 1/4. Venture capital companies pay more attention to the long -term profitability of such enterprises. Essence If the start -up company wants to get investment in venture capital, it needs to show investors to investors' profitability, sustainability of business models, and industry development barriers to investors. . Different characteristics 1. Private equity: "Investment companies" do not have a large number of shareholders, and the amount of contributions must be relatively large. 2, venture capital: Investors are both investors and operators. Risk investors generally have a strong technical background. At the same time, they also have professional management knowledge. Such a knowledge background helps them to well understand the business model of high -tech enterprises, and help entrepreneurs to improve the business and business operations and business operations and business operations and business operations and enterprises 'operations and business operations and enterprises' operations and business operations and enterprises 'operations and business operations and enterprises' operations and business operations and enterprises 'operations and business operations and enterprises' operations and enterprises can improve their business operations and enterprises. manage. . Different operation methods 1. Private equity: Risk investment usually operates in the way of venture capital funds. In the legal structure, venture capital funds adopt a limited partnership, while the venture capital company manages the fund's investment operation as an ordinary partner and receives corresponding compensation. Adopting a limited partnership venture capital fund in the United States can obtain tax incentives, and the government also encourages the development of venture capital in this way. 2, venture capital: corporate private equity funds have a complete corporate structure, and the operation is more formal and standardized. Company -style private equity funds (such as "a certain investment company") can be established in China. Semi -open private equity funds can also operate more conveniently in some kind of change. There is no need to accept strict approval and supervision, and the investment strategy can be more flexible. Reference materials Source: Baidu Encyclopedia-Private Equity
eddie's wholesale jewelry and pawn Private equity means that when a certain bond private equity is issued, funders may not sell public sales and are only subscribed by some special institutions. Private equity bonds cannot be listed and circulated, and cannot be transferred within a certain period of time. Even when it can be transferred, it can only be transferred to the above institutions. Risk investment refers to all investment in high -risk and high -potential income. Investment people usually invest in huge amounts of funds, established professional investment companies, and develop some emerging, rapidly developing and rapidly competitive potential companies. VC can be said to be a kind of equity capital.
The differences between private equity and venture capital are different. Private equity is mainly raised for minority investors or individuals through non -public ways. ongoing. In addition, the investment method is also carried out in private equity. It rarely involves the operation of the open market. Generally, there is no need to disclose the transaction details. The reason why venture capital is called venture capital is because there are many uncertainty in venture capital, which brings great risks to investment and return.
The different operation methods are also the difference between private equity and venture capital. Risk investment generally uses a risk investment fund to operate. Risk investment funds are in the form of a limited partnership in the legal structure. The operation of private equity investment refers to the overall operation process of the establishment and management, project selection, investment cooperation and project exit of private equity investment institutions.
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repurposed louis vuitton jewelry wholesale Private equity funds are funds engaged in investment in private equity (equity of non -listed companies). They are not pursuing equity income, but to sell equity through equity transfer paths such as listing, management acquisitions and mergers and acquisitions.
The characteristics of private equity funds: private equity funds Thera for private equity funds are narrower than public funds, but their raised targets are strong funds, capital constituent quality constituent quality Higher institutions or individuals, which make the funds raised in terms of quality and quantity, may not necessarily be as good as public funds. It can be an individual investor or an institutional investor. Equity investment In addition to simple equity investment, the method of investing in disguised equity (such as investment in convertible bonds or attached equity corporate bonds), as well as equity investment, debt investment, investment in debt rights Combined investment method supplemented. The risk is large The risk of private equity investment first stems from its relatively long investment cycle. Therefore, if a private equity fund wants to make a profit, we must pay a certain effort to not only meet the financing needs of enterprises, but also bring benefits to enterprises. This is destined to be a long -term process. participating in management In general, there is a professional fund management team in private equity funds, which has rich management experience and market operation experience. Improved operation and management. However, private equity investors only participate in corporate management rather than controlling enterprises.
wholesale jewelry stores los angeles Private equity means that when a certain bond private equity is issued, funders may not sell public sales and are only subscribed by some special institutions. Private equity bonds cannot be listed and circulated, and cannot be transferred within a certain period of time. Even when it can be transferred, it can only be transferred to the above institutions. Risk investment refers to all investment in high -risk and high -potential income. Investment people usually invest in huge amounts of funds, established professional investment companies, and develop some emerging, rapidly developing and rapidly competitive potential companies. VC can be said to be a kind of equity capital. The differences between private equity and venture capital are different. Private equity is mainly raised to a minority investor or individual through non -public ways. Its sales and redemption are negotiated by the fund manager through privately with investors. In addition, the investment method is also carried out in private equity. It rarely involves the operation of the open market. Generally, there is no need to disclose the transaction details. The reason why venture capital is called venture capital is because there are many uncertainty in venture capital, which brings great risks to investment and return. The different operation methods are also the difference between private equity and venture capital. Risk investment generally uses venture capital funds to operate. Risk investment funds are used in a limited partnership in the legal structure. The operation of private equity investment refers to the overall operation process of the establishment and management, project selection, investment cooperation and project exit of private equity investment institutions.
wholesale costume jewelry stores in manhattan Public fund -funded private equity funds and risk investment
. Fund is the funding of the fund units to centralize the fund's funds. The collection of investment methods. According to different investment targets, it can be distinguished as equity investment funds and securities investment funds. Equity investment funds mainly invest in equity or other equity of unlisted enterprises; securities investment funds mainly invest in stocks of listed companies and other securities (bonds, currencies, etc.). Based on whether the fund can be redeemed, the fund can be divided into open funds and closed funds. Depending on the fundraising methods and objects, they can be divided into public funds and private equity funds.
The public fund is supervised by the government authority and publicly issues securities investment funds to unspecified investors. The benefits of public offerings: (1) with many investors as the issuer, (2) the potential for raising a large potential, (3) a large scope of investors (investors with unspecified objects), (4) can apply for listing on the exchange (Such as closed), (5) information disclosure is open and transparent.
The private equity fund is relative to public funds. It refers not to all investors, but a fund set up to a minority institutional investor and wealthy individual investors through non -public ways. Its sales and redemption are all funds raised by fund managers through private consultation with investors in private, generally raised in the form of investment intent (non -public prospectus).
The status, organizational form and supervision of private equity funds
. The current status of private equity funds
The number and scale of global private equity funds % Increased, and the current total has exceeded 10 trillion US dollars. In US laws, private equity is not clearly defined, but in the "Investment Companies Law", it defines it as "exemption of registered funds" in accordance with relevant terms. Such funds are mainly: venture capital funds, hedge funds, investor clubs, private equity investment funds, and some structural investment instruments. The main forms are venture capital funds and hedge funds. The scale of US private equity investment funds is not large, mostly at $ 1-1 billion, and the scale of private equity investment funds has continued to expand. In 2006, KKR raised a new $ 16.1 billion fund. Carey raised a new fund of $ 150-20 billion. Bain Capital, APAX, Yinhu, THL and other newly planned funds were at least its previous fund scale scale Twice. The promulgation of the SARBANES-Oxley Act has greatly expanded the business scope of private equity investment funds. In the United Kingdom, private equity funds mainly refer to those who have not been regulated, and they are clearly issued to the general public in the UK. Its funding sources include personal investors, funds, and bank financial institutions. Private equity in the UK accounts for 40%of the total European market, second only to the United States. Japan has clearly prohibited private equity investment funds, but Japanese law has not banned the collection investment funds that are not mainly invested in securities, especially venture capital funds, especially venture capital funds.
The private equity fund for 20 years has become a force that cannot be ignored in the securities market. At present, the total scale is close to RMB 1 trillion. There are private equity funds that have been publicized and appeared in a trust, and there are private equity funds that exist in unclear forms such as entrusted financial management, and some "fake private equity" that illegally fundraising in the name of private equity. On August 27, 2006, the National People's Congress passed the "Partnership Enterprise Law", so that private equity funds organized by the company have no legal obstacles in my country.
2. Organizational form
The organizational form of international private equity, mainly corporate, contractual and limited partnership system. The company -style private equity belongs to a joint -stock investment company and consists of investors with common investment goals. Investors purchase fund shares, they have become the shareholders of the company, enjoying corresponding participation, decision -making power, income distribution rights, and residual asset distribution rights. The early US private equity is generally the company type, and Buffett's Berxut Hathaway belongs to this category. The biggest disadvantage of corporate private equity funds is that they are double taxes. They must pay the taxes and fees of various corporates, but also pay the dividend personal income tax. Contract -type private equity, also known as trust -type private equity, is an agency investment system. It is established according to a trust contract relationship. relation. Compared with corporate private equity, contractual private equity funds can avoid double taxation. This type of fund is more popular in Japan, the United Kingdom and Taiwan. Partnership companies, especially limited partnership private equity, have gradually become the mainstream of American private equity funds. The sponsor of limited partnership private equity is usually fund managers. As a general partner, it is responsible for the operation of the fund and has unlimited responsibility for the partnership funds; all investors are limited partners and only bear the responsibility for the capital contribution. According to US laws, such private equity can enjoy the limited liability system (only to limited partners) and partnerships of tax preferences at the same time. Due to the unlimited responsibility of the fund manager, it constitutes a strong responsibility constraint on the management partner, so that it can truly fulfill its integrity obligations, including restricting the company's debt to borrow. In the United States' private equity practice, this method has achieved great success, and other countries have begun to follow. In Japan, this method is called the investment business portfolio. Because Britain does not levy the company's tax on partnership funds, and the establishment and operation of limited partnership funds is relatively simple, British private equity funds mostly adopt this method.
3. Private equity supervision
The United States has no special laws on private equity norms. The "Investment Company Law" in the United States covers various public investment methods and puts forward many normative requirements (such as information disclosure obligations). Private equity funds are usually established in accordance with the exemption clauses of the Investment Company Law, and fundraising objects are limited to qualified investors who are non -public. However, the US Securities Law has strictly strictly stipulated private equity investors. For example, the annual income of individual investors must be at least $ 200,000, or the income, including spouses, is higher than $ 300,000. At the same time, it must have 500 500 Assets of more than 10,000 US dollars; the threshold for institutional investors is that net assets should be more than $ 1 million. In addition, private equity usually avoid supervision according to the exemption clauses of the Securities Law and the Investment Consultant Law. Therefore, private equity funds are largely from the US financial supervision system upstream. The United States' supervision of private equity funds is mainly the specifications of investors, including the number of investors and the requirements of investor qualifications; there are also special regulations for the issuance and advertising of private equity funds. The Pension Act (ERISA) established the "Principles of Care Investors". Most private equity received investment in pensions and was also under the jurisdiction of the bill. In order to reasonably avoid supervision, many private equity funds have listed ERISA supervision investors as one category, setting a special investment structure for it. The US "Bank Holding Company Law" limits the investment ratio of bank holding companies to single private equity funds to less than 25%(the share of the exercise of voting rights must be less than 5%). The supervision of private equity in the UK is mainly based on industry self -discipline and supplemented by legal supervision. According to the "Financial Services and Market Act" in 2000, private equity can be established in the form of unsupervised collective investment, but it must be managed by fund management companies, and the latter is supervised by the British Financial Services Bureau. Fund management companies need to be approved to engage in private equity management business. The regulatory manual of the Financial Services Bureau has set 3 standards to regulate private equity fund management companies. The first involves directors and senior managers of fund management companies, as well as internal control systems. The second requires that fund management companies invest in their own funds in their management funds. The third involves the content of anti -money laundering bill and commercial ethics. In general, its supervision is also mainly reflected in investor qualifications, as well as spreading and advertising methods. The overall supervision of private equity in various countries is relatively loose. Private equity funds can largely avoid government supervision, and give full play to their characteristics such as flexible operation, full incentive mechanism, and unique investment strategy. The emerging industries in the private equity investment market, such as high -tech industries, have a small scale and a large risk. Compared with the main investment of public funds in mature markets, the former just makes up for the shortcomings of the resource allocation system.
is worth noting that due to the lack of systematic legal norms, my country ’s contract -type private equity funds often have huge hidden risks in operation, and even have become tools for illegal benefits to some criminals. In practice, illegal private equity funds are common in two types: illegal fundraising, illegal or disguise to absorb public deposits. According to my country's "Criminal Law", illegal fund -raising refers to the act of raising funds from the public, or other organizations or individuals, without the approval of the authority. The target of illegal fundraising is the public, and most of the means are fraud. It is the most important reason for the promise of high return and high interest rates to lure the public. Fraudity is the most important reason for which it is banned by the law. Generally speaking, the target of private equity funds is a small number of specific investors, and the general threshold for these investors is relatively high. Of course, it also includes risks, but if the sponsor of private equity funds promised investors to pay a high proportion of revenue, then it can be regarded as illegal fundraising. According to my country's law, it is not approved by the competent financial authority, and no unit or individual may engage in the business of absorbing public deposits or disguised public deposits, otherwise it will constitute illegal acts. The fundamental characteristic of illegal or disguised absorption of public deposits and private equity funds is whether to pay interest. The benefits of private equity funds are from risk returns. It should not involve fixed interest in any form, otherwise it is suspected of illegal.
The risk investment
Venture capital (Venture Capital) to raise funds by collecting investment to disperse investment risks by combining investment, and earn profits by managing value -added. It has the characteristics of high risk, high profits, poor liquidity, unsecured guarantee requirements, focusing on long -term and future characteristics. Venture investment is different from ordinary investment. Ordinary investment can be considered as a form of investing funds to transform into physical assets or financial assets. The venture capital is to obtain the high returns of the future maturity of the investment, and to invest a certain amount of risky funds during its start -up stage. If general investment is to obtain time or long -term benefits, the venture capital is to obtain the expected income, and the expected expected is uncertain, so the latter is more risky.
The risk investment fund belongs to the equity investment fund. It has two distinctive characteristics. One is the early stage of the development of investment enterprises, and the other is to invest in high -tech and business model innovation enterprises. On the one hand, companies in such categories have high -speed growth potential, and at the same time, there are many uncertain factors. The benefits brought to the fund are high but risky. Therefore, it is called a venture capital fund and some people call it an entrepreneurial investment fund. In recent years, the development stage of venture capital investment has changed, and it is difficult to clearly define it. Therefore, it is suspected of losing as a academic concept.
1. The organizational form and implementation process of venture capital
It in developed countries, since the 1950s, several forms of organizational forms of venture capital institutions have appeared: (1 1 ) Risk investment institutions combined with national capital and private capital. Such as SBIC in the United States (SBIC) in 1985. (2) Small private partnership. These two models are typical "American models", that is, models with private venture capital companies of small companies. According to the regulations of the US Small Enterprise Administration, the foundation capital of small enterprise companies should not be less than $ 500,000, and its total investment in a risk -risk enterprise cannot exceed 20%of its total capital, nor can it exceed 49%of the total funds of the risk enterprise. Essence It can be seen that rigorous legal constraints are an important supporting point for the healthy development of norms and avoiding excessive speculation and blind investment. (3) Limited liability company. (4) Risk investment shares, that is, large joint -stock investment companies invest in limited liability systems, and those who invest in them may be private, enterprise and institutions and banks. The company is a limited partner, and the limited liability company will invest in venture capital. The company can share the income. (5) Sindiga Organization, that is, the risk investment company is united according to the Cindy Method. Among them, the leader must charge a certain fee. These forms are called "Japanese models", that is, large companies and large banks are the main body (internal investment within the group (the group investment inside the group (the group investment inside the group Model of the subject). The reason why it is called the Japanese model is because the protagonist of Japanese venture capital is borne by the venture capital organization in this form. (6) Entrepreneurship Investment Fund, it is a capital organization that specializes in venture capital for high -tech enterprises and expects to obtain high -yield capital organizations. Essence No matter what kind of organizational form is adopted, the source of risk funds is regular and fixed. The main sources of risk funds are: pension funds, companies, donations, insurance companies, individuals and families, research institutions (including universities), commercial banks, and commercial banks, and commercial banks and business banks. Foreign investors, in general, the funds of pension funds and the company account for about 60%of the source of the entire venture capital capital, of which the proportion of pension funds is the largest.
In general, the venture investment must go through the following process: establish a fund, find investment opportunities → raise funds for investment → generate transaction processes, identify new companies with high potential → screen, evaluation transaction → evaluation → evaluation 2. Negotiations → Add value process (strategic development, vibrant board, hire external experts) to attract other investors → plan to implement the exit strategy (IPO, dissolution, bankruptcy to liquidate, merged and acquired). In other words, the venture capital process includes four stages: financing, investment, risk management and exit, and the exit stage is the channels for monetization and withdrawal of risk capital. force. The internationally exit mechanism of venture capital is: two -board listing, counter trading, mergers and repurchase and bankruptcy liquidation. Statistics show that among the major exit mechanisms in the United States, 20%of public listing transactions, 20%of bankruptcy liquidation, and 55%of mergers and repurchase. As a result, it was merged and repurchased, and what was successful for the first public listing and trading was still minimal.
2. my country's risk investment development trend
, the same as the information industry and the information industry. After the 1980s, it quickly grew into a global industry. The re -integrated international venture capital fund after 2003 shows the new four major characteristics: (1) In terms of investment companies' choices, the focus is on the seed company. (2) In terms of exit channels, it pays more attention to mergers and acquisitions (M
jewelry materials wholesale 1. Different investment objects
1. Private equity: The investment targets of private equity companies are usually in the rapid expansion stage of 1/4 to 1/2. Compared with venture capital, private equity companies value short -term profitability, and they pay more attention to being in the market. At the mature stage, these companies often have business models that have been affirmed and verified by the market.
2, venture capital: The investment objects of venture capital are usually in the start -up period. The company is in a slow growth stage of companies with positive profit to 1/4. Venture capital companies pay more attention to the long -term profitability of such enterprises. Essence If the start -up company wants to get investment in venture capital, it needs to show investors to investors' profitability, sustainability of business models, and industry development barriers to investors.
. Different characteristics
1. Private equity: "Investment companies" do not have a large number of shareholders, and the amount of contributions must be relatively large.
2, venture capital: Investors are both investors and operators. Risk investors generally have a strong technical background. At the same time, they also have professional management knowledge. Such a knowledge background helps them to well understand the business model of high -tech enterprises, and help entrepreneurs to improve the business and business operations and business operations and business operations and business operations and enterprises 'operations and business operations and enterprises' operations and business operations and enterprises 'operations and business operations and enterprises' operations and business operations and enterprises 'operations and business operations and enterprises' operations and enterprises can improve their business operations and enterprises. manage.
. Different operation methods
1. Private equity: Risk investment usually operates in the way of venture capital funds. In the legal structure, venture capital funds adopt a limited partnership, while the venture capital company manages the fund's investment operation as an ordinary partner and receives corresponding compensation. Adopting a limited partnership venture capital fund in the United States can obtain tax incentives, and the government also encourages the development of venture capital in this way.
2, venture capital: corporate private equity funds have a complete corporate structure, and the operation is more formal and standardized. Company -style private equity funds (such as "a certain investment company") can be established in China. Semi -open private equity funds can also operate more conveniently in some kind of change. There is no need to accept strict approval and supervision, and the investment strategy can be more flexible.
Reference materials Source:
Baidu Encyclopedia-Private Equity
Baidu Encyclopedia-Risk Investment
eddie's wholesale jewelry and pawn Private equity means that when a certain bond private equity is issued, funders may not sell public sales and are only subscribed by some special institutions. Private equity bonds cannot be listed and circulated, and cannot be transferred within a certain period of time. Even when it can be transferred, it can only be transferred to the above institutions. Risk investment refers to all investment in high -risk and high -potential income. Investment people usually invest in huge amounts of funds, established professional investment companies, and develop some emerging, rapidly developing and rapidly competitive potential companies. VC can be said to be a kind of equity capital.
The differences between private equity and venture capital are different. Private equity is mainly raised for minority investors or individuals through non -public ways. ongoing. In addition, the investment method is also carried out in private equity. It rarely involves the operation of the open market. Generally, there is no need to disclose the transaction details. The reason why venture capital is called venture capital is because there are many uncertainty in venture capital, which brings great risks to investment and return.
The different operation methods are also the difference between private equity and venture capital. Risk investment generally uses a risk investment fund to operate. Risk investment funds are in the form of a limited partnership in the legal structure. The operation of private equity investment refers to the overall operation process of the establishment and management, project selection, investment cooperation and project exit of private equity investment institutions.
The investment and wealth management recommendation to the gold ax. Shenzhen Golden Ax Capital Management Co., Ltd. is the leading Internet wealth management institution in China. It provides professional and independent Internet wealth management services for high net worth groups in the new era. Deliven to becoming a million -dollar wealth management platform for high -end investors in the new era.
repurposed louis vuitton jewelry wholesale Private equity funds are funds engaged in investment in private equity (equity of non -listed companies). They are not pursuing equity income, but to sell equity through equity transfer paths such as listing, management acquisitions and mergers and acquisitions.
The characteristics of private equity funds:
private equity funds
Thera for private equity funds are narrower than public funds, but their raised targets are strong funds, capital constituent quality constituent quality Higher institutions or individuals, which make the funds raised in terms of quality and quantity, may not necessarily be as good as public funds. It can be an individual investor or an institutional investor.
Equity investment
In addition to simple equity investment, the method of investing in disguised equity (such as investment in convertible bonds or attached equity corporate bonds), as well as equity investment, debt investment, investment in debt rights Combined investment method supplemented.
The risk is large
The risk of private equity investment first stems from its relatively long investment cycle. Therefore, if a private equity fund wants to make a profit, we must pay a certain effort to not only meet the financing needs of enterprises, but also bring benefits to enterprises. This is destined to be a long -term process.
participating in management
In general, there is a professional fund management team in private equity funds, which has rich management experience and market operation experience. Improved operation and management. However, private equity investors only participate in corporate management rather than controlling enterprises.
wholesale jewelry stores los angeles Private equity means that when a certain bond private equity is issued, funders may not sell public sales and are only subscribed by some special institutions. Private equity bonds cannot be listed and circulated, and cannot be transferred within a certain period of time. Even when it can be transferred, it can only be transferred to the above institutions. Risk investment refers to all investment in high -risk and high -potential income. Investment people usually invest in huge amounts of funds, established professional investment companies, and develop some emerging, rapidly developing and rapidly competitive potential companies. VC can be said to be a kind of equity capital.
The differences between private equity and venture capital are different. Private equity is mainly raised to a minority investor or individual through non -public ways. Its sales and redemption are negotiated by the fund manager through privately with investors. In addition, the investment method is also carried out in private equity. It rarely involves the operation of the open market. Generally, there is no need to disclose the transaction details. The reason why venture capital is called venture capital is because there are many uncertainty in venture capital, which brings great risks to investment and return.
The different operation methods are also the difference between private equity and venture capital. Risk investment generally uses venture capital funds to operate. Risk investment funds are used in a limited partnership in the legal structure. The operation of private equity investment refers to the overall operation process of the establishment and management, project selection, investment cooperation and project exit of private equity investment institutions.
wholesale costume jewelry stores in manhattan Public fund -funded private equity funds and risk investment
. Fund is the funding of the fund units to centralize the fund's funds. The collection of investment methods. According to different investment targets, it can be distinguished as equity investment funds and securities investment funds. Equity investment funds mainly invest in equity or other equity of unlisted enterprises; securities investment funds mainly invest in stocks of listed companies and other securities (bonds, currencies, etc.). Based on whether the fund can be redeemed, the fund can be divided into open funds and closed funds. Depending on the fundraising methods and objects, they can be divided into public funds and private equity funds.
The public fund is supervised by the government authority and publicly issues securities investment funds to unspecified investors. The benefits of public offerings: (1) with many investors as the issuer, (2) the potential for raising a large potential, (3) a large scope of investors (investors with unspecified objects), (4) can apply for listing on the exchange (Such as closed), (5) information disclosure is open and transparent.
The private equity fund is relative to public funds. It refers not to all investors, but a fund set up to a minority institutional investor and wealthy individual investors through non -public ways. Its sales and redemption are all funds raised by fund managers through private consultation with investors in private, generally raised in the form of investment intent (non -public prospectus).
The status, organizational form and supervision of private equity funds
. The current status of private equity funds
The number and scale of global private equity funds % Increased, and the current total has exceeded 10 trillion US dollars. In US laws, private equity is not clearly defined, but in the "Investment Companies Law", it defines it as "exemption of registered funds" in accordance with relevant terms. Such funds are mainly: venture capital funds, hedge funds, investor clubs, private equity investment funds, and some structural investment instruments. The main forms are venture capital funds and hedge funds. The scale of US private equity investment funds is not large, mostly at $ 1-1 billion, and the scale of private equity investment funds has continued to expand. In 2006, KKR raised a new $ 16.1 billion fund. Carey raised a new fund of $ 150-20 billion. Bain Capital, APAX, Yinhu, THL and other newly planned funds were at least its previous fund scale scale Twice. The promulgation of the SARBANES-Oxley Act has greatly expanded the business scope of private equity investment funds. In the United Kingdom, private equity funds mainly refer to those who have not been regulated, and they are clearly issued to the general public in the UK. Its funding sources include personal investors, funds, and bank financial institutions. Private equity in the UK accounts for 40%of the total European market, second only to the United States. Japan has clearly prohibited private equity investment funds, but Japanese law has not banned the collection investment funds that are not mainly invested in securities, especially venture capital funds, especially venture capital funds.
The private equity fund for 20 years has become a force that cannot be ignored in the securities market. At present, the total scale is close to RMB 1 trillion. There are private equity funds that have been publicized and appeared in a trust, and there are private equity funds that exist in unclear forms such as entrusted financial management, and some "fake private equity" that illegally fundraising in the name of private equity. On August 27, 2006, the National People's Congress passed the "Partnership Enterprise Law", so that private equity funds organized by the company have no legal obstacles in my country.
2. Organizational form
The organizational form of international private equity, mainly corporate, contractual and limited partnership system. The company -style private equity belongs to a joint -stock investment company and consists of investors with common investment goals. Investors purchase fund shares, they have become the shareholders of the company, enjoying corresponding participation, decision -making power, income distribution rights, and residual asset distribution rights. The early US private equity is generally the company type, and Buffett's Berxut Hathaway belongs to this category. The biggest disadvantage of corporate private equity funds is that they are double taxes. They must pay the taxes and fees of various corporates, but also pay the dividend personal income tax. Contract -type private equity, also known as trust -type private equity, is an agency investment system. It is established according to a trust contract relationship. relation. Compared with corporate private equity, contractual private equity funds can avoid double taxation. This type of fund is more popular in Japan, the United Kingdom and Taiwan. Partnership companies, especially limited partnership private equity, have gradually become the mainstream of American private equity funds. The sponsor of limited partnership private equity is usually fund managers. As a general partner, it is responsible for the operation of the fund and has unlimited responsibility for the partnership funds; all investors are limited partners and only bear the responsibility for the capital contribution. According to US laws, such private equity can enjoy the limited liability system (only to limited partners) and partnerships of tax preferences at the same time. Due to the unlimited responsibility of the fund manager, it constitutes a strong responsibility constraint on the management partner, so that it can truly fulfill its integrity obligations, including restricting the company's debt to borrow. In the United States' private equity practice, this method has achieved great success, and other countries have begun to follow. In Japan, this method is called the investment business portfolio. Because Britain does not levy the company's tax on partnership funds, and the establishment and operation of limited partnership funds is relatively simple, British private equity funds mostly adopt this method.
3. Private equity supervision
The United States has no special laws on private equity norms. The "Investment Company Law" in the United States covers various public investment methods and puts forward many normative requirements (such as information disclosure obligations). Private equity funds are usually established in accordance with the exemption clauses of the Investment Company Law, and fundraising objects are limited to qualified investors who are non -public. However, the US Securities Law has strictly strictly stipulated private equity investors. For example, the annual income of individual investors must be at least $ 200,000, or the income, including spouses, is higher than $ 300,000. At the same time, it must have 500 500 Assets of more than 10,000 US dollars; the threshold for institutional investors is that net assets should be more than $ 1 million. In addition, private equity usually avoid supervision according to the exemption clauses of the Securities Law and the Investment Consultant Law. Therefore, private equity funds are largely from the US financial supervision system upstream. The United States' supervision of private equity funds is mainly the specifications of investors, including the number of investors and the requirements of investor qualifications; there are also special regulations for the issuance and advertising of private equity funds. The Pension Act (ERISA) established the "Principles of Care Investors". Most private equity received investment in pensions and was also under the jurisdiction of the bill. In order to reasonably avoid supervision, many private equity funds have listed ERISA supervision investors as one category, setting a special investment structure for it. The US "Bank Holding Company Law" limits the investment ratio of bank holding companies to single private equity funds to less than 25%(the share of the exercise of voting rights must be less than 5%). The supervision of private equity in the UK is mainly based on industry self -discipline and supplemented by legal supervision. According to the "Financial Services and Market Act" in 2000, private equity can be established in the form of unsupervised collective investment, but it must be managed by fund management companies, and the latter is supervised by the British Financial Services Bureau. Fund management companies need to be approved to engage in private equity management business. The regulatory manual of the Financial Services Bureau has set 3 standards to regulate private equity fund management companies. The first involves directors and senior managers of fund management companies, as well as internal control systems. The second requires that fund management companies invest in their own funds in their management funds. The third involves the content of anti -money laundering bill and commercial ethics. In general, its supervision is also mainly reflected in investor qualifications, as well as spreading and advertising methods. The overall supervision of private equity in various countries is relatively loose. Private equity funds can largely avoid government supervision, and give full play to their characteristics such as flexible operation, full incentive mechanism, and unique investment strategy. The emerging industries in the private equity investment market, such as high -tech industries, have a small scale and a large risk. Compared with the main investment of public funds in mature markets, the former just makes up for the shortcomings of the resource allocation system.
is worth noting that due to the lack of systematic legal norms, my country ’s contract -type private equity funds often have huge hidden risks in operation, and even have become tools for illegal benefits to some criminals. In practice, illegal private equity funds are common in two types: illegal fundraising, illegal or disguise to absorb public deposits. According to my country's "Criminal Law", illegal fund -raising refers to the act of raising funds from the public, or other organizations or individuals, without the approval of the authority. The target of illegal fundraising is the public, and most of the means are fraud. It is the most important reason for the promise of high return and high interest rates to lure the public. Fraudity is the most important reason for which it is banned by the law. Generally speaking, the target of private equity funds is a small number of specific investors, and the general threshold for these investors is relatively high. Of course, it also includes risks, but if the sponsor of private equity funds promised investors to pay a high proportion of revenue, then it can be regarded as illegal fundraising. According to my country's law, it is not approved by the competent financial authority, and no unit or individual may engage in the business of absorbing public deposits or disguised public deposits, otherwise it will constitute illegal acts. The fundamental characteristic of illegal or disguised absorption of public deposits and private equity funds is whether to pay interest. The benefits of private equity funds are from risk returns. It should not involve fixed interest in any form, otherwise it is suspected of illegal.
The risk investment
Venture capital (Venture Capital) to raise funds by collecting investment to disperse investment risks by combining investment, and earn profits by managing value -added. It has the characteristics of high risk, high profits, poor liquidity, unsecured guarantee requirements, focusing on long -term and future characteristics. Venture investment is different from ordinary investment. Ordinary investment can be considered as a form of investing funds to transform into physical assets or financial assets. The venture capital is to obtain the high returns of the future maturity of the investment, and to invest a certain amount of risky funds during its start -up stage. If general investment is to obtain time or long -term benefits, the venture capital is to obtain the expected income, and the expected expected is uncertain, so the latter is more risky.
The risk investment fund belongs to the equity investment fund. It has two distinctive characteristics. One is the early stage of the development of investment enterprises, and the other is to invest in high -tech and business model innovation enterprises. On the one hand, companies in such categories have high -speed growth potential, and at the same time, there are many uncertain factors. The benefits brought to the fund are high but risky. Therefore, it is called a venture capital fund and some people call it an entrepreneurial investment fund. In recent years, the development stage of venture capital investment has changed, and it is difficult to clearly define it. Therefore, it is suspected of losing as a academic concept.
1. The organizational form and implementation process of venture capital
It in developed countries, since the 1950s, several forms of organizational forms of venture capital institutions have appeared: (1 1 ) Risk investment institutions combined with national capital and private capital. Such as SBIC in the United States (SBIC) in 1985. (2) Small private partnership. These two models are typical "American models", that is, models with private venture capital companies of small companies. According to the regulations of the US Small Enterprise Administration, the foundation capital of small enterprise companies should not be less than $ 500,000, and its total investment in a risk -risk enterprise cannot exceed 20%of its total capital, nor can it exceed 49%of the total funds of the risk enterprise. Essence It can be seen that rigorous legal constraints are an important supporting point for the healthy development of norms and avoiding excessive speculation and blind investment. (3) Limited liability company. (4) Risk investment shares, that is, large joint -stock investment companies invest in limited liability systems, and those who invest in them may be private, enterprise and institutions and banks. The company is a limited partner, and the limited liability company will invest in venture capital. The company can share the income. (5) Sindiga Organization, that is, the risk investment company is united according to the Cindy Method. Among them, the leader must charge a certain fee. These forms are called "Japanese models", that is, large companies and large banks are the main body (internal investment within the group (the group investment inside the group (the group investment inside the group Model of the subject). The reason why it is called the Japanese model is because the protagonist of Japanese venture capital is borne by the venture capital organization in this form. (6) Entrepreneurship Investment Fund, it is a capital organization that specializes in venture capital for high -tech enterprises and expects to obtain high -yield capital organizations. Essence No matter what kind of organizational form is adopted, the source of risk funds is regular and fixed. The main sources of risk funds are: pension funds, companies, donations, insurance companies, individuals and families, research institutions (including universities), commercial banks, and commercial banks, and commercial banks and business banks. Foreign investors, in general, the funds of pension funds and the company account for about 60%of the source of the entire venture capital capital, of which the proportion of pension funds is the largest.
In general, the venture investment must go through the following process: establish a fund, find investment opportunities → raise funds for investment → generate transaction processes, identify new companies with high potential → screen, evaluation transaction → evaluation → evaluation 2. Negotiations → Add value process (strategic development, vibrant board, hire external experts) to attract other investors → plan to implement the exit strategy (IPO, dissolution, bankruptcy to liquidate, merged and acquired). In other words, the venture capital process includes four stages: financing, investment, risk management and exit, and the exit stage is the channels for monetization and withdrawal of risk capital. force. The internationally exit mechanism of venture capital is: two -board listing, counter trading, mergers and repurchase and bankruptcy liquidation. Statistics show that among the major exit mechanisms in the United States, 20%of public listing transactions, 20%of bankruptcy liquidation, and 55%of mergers and repurchase. As a result, it was merged and repurchased, and what was successful for the first public listing and trading was still minimal.
2. my country's risk investment development trend
, the same as the information industry and the information industry. After the 1980s, it quickly grew into a global industry. The re -integrated international venture capital fund after 2003 shows the new four major characteristics: (1) In terms of investment companies' choices, the focus is on the seed company. (2) In terms of exit channels, it pays more attention to mergers and acquisitions (M