What is a private equity fund? Private equity fund is a fund engaged in private equity (non-listed company equity) investment. It mainly includes investing in the equity of non-listed companies or the non-publicly traded equity of listed companies. The pursuit is not equity income, but the profit from selling equity through equity transfer paths such as listing, management buyout and merger. Do you know how private equity funds raise funds?

The mastery of private fund raising is the basic situation that investors need to know before private fund raising. Generally speaking, the main source of funds for private equity funds is the registered capital raised, and it also includes the follow-up fund raising and fund development according to the project during the fund development process. So generally speaking, there are two main ways to raise funds for private equity funds: registered capital raising and management company raising.

1, registered capital raising

Registered capital raising refers to the direct establishment of enterprise private equity funds according to the Company Law and the Interim Measures for the Administration of Venture Capital Enterprises. The raised funds are used as the source of registered capital and investment funds, and the investors and their contributions are determined when the company is established. After the company is established, if it needs new capital or investors, it will increase capital and share. If the investor withdraws, capital reduction or equity transfer * * (generally speaking, equity transfer is adopted because capital reduction is subject to more restrictions). This registered capital raising * * means that the shareholders of the company may change, which is not conducive to the sustainable and long-term development of the company. In particular, the private equity fund with limited liability company system, because of its strong affinity for shareholders, does not want frequent changes in shareholders, and registered capital raising sometimes makes academician shareholders unwilling to accept it.

2. Manage the company's products

Management company offering is generally used after the development of private equity funds in enterprises to a certain stage. At this time, private equity funds have accumulated certain achievements, have certain brand influence, and have the qualification and ability to raise other people's funds for investment. The sale of a management company refers to the establishment of a new fund, that is, a limited partnership private equity fund, with its own management company and its own promoters, and its status and role are equivalent to that of a general partner. After many domestic start-ups reach a certain stage, they will invest by setting up other funds to achieve sustainable development.