What are Private Equity Firms?

A private equity company is a company that raises funds from investors and invests in the form of bearer equity.

Private equity firm

This entry lacks an overview map . Supplementing related content makes the entry more complete and can be upgraded quickly. Come on!

A private equity company is a company that raises funds from investors and invests in the form of bearer equity.

The earliest private equity investment company was KKR, an investment company established by the three partners of the well-known investment bank Bear Stearns in 1976, which specializes in mergers and acquisitions. So far, private equity investment companies have blossomed all over the world, and there are thousands of companies specializing in private equity investment worldwide. Among them, KKR, Carlyle Investment Group, and Blackstone Group are the industry leaders.

The formal development of private equity investment companies in China began on December 30, 2006.The State Council's first private equity investment fund, the Bohai Industry Investment Fund, was established in Tianjin with a total size of 20 billion yuan. The fundraising of 6.08 billion yuan in this period is particularly huge. It is an important institutional investor in China's capital market. It mainly invests and manages wealth by gathering idle funds in the market. The establishment of the fund is a milestone for the development of China's domestic private equity funds.

company name

Private equity firm

Established

1976

Company Type

Professional investment management agency

Positioning

Fund planners, etc.

As a professional investment management institution, private equity companies are the core of the function of "collective investment and expert financial management". It plays an important role in the establishment, management, operation and maturity of private equity investment funds. On the whole, the positioning of private equity investment fund management companies is reflected in three aspects:

Fund planner. Fund managers, based on their professional analysis capabilities and resource integration capabilities, combined with the needs of economic, social and industrial development, design fund solutions with specific investment directions and clear target substrates, and provide them to potential investors for investment decisions.

The fund's pulling hair started. The fund manager shall take the lead in organizing the fundraising of the fund, and specifically organize the implementation of the fund establishment, including organizing the fundraising roadshow, determining the funding intention, organizing the negotiation of the terms of the establishment document, organizing the investor establishment conference, completing the investor capital and legal documents Signing, while helping investors choose to determine the fund custodian, organize investors to sign cooperation agreements with the custodian.

Fund management and operation. This is mainly based on the fund's entrusted management contract, looking for research projects to be provided to the fund for investment decisions. After the investment decision is passed, the fund custodian bank is coordinated to allocate investment funds. At the same time, the fund manager must send property rights representatives to the invested project, perform the investor's rights on behalf of the fund, and provide value-added services to the project. In each financial year, the fund manager must submit the fund's annual report and profit distribution plan, and accept the evaluation of the fund's board of directors and the audit of the supervisory board.

Funds are liquidated at maturity. When the establishment period of the fund expires, the fund management company shall perform its liquidation duties and help the fund to do a good job in property registration, asset evaluation and liquidation programs. Within the last two years of the fund's establishment period, it is necessary to complete the withdrawal of the invested projects as soon as possible, maximize the recovery of cash, and maximize the securitization of assets.