What Is Committed Capital?
Capital commitments are also called capital commitments, or committed capital. Committed capital refers to the capital committed to a venture capital fund. The capital is generally not provided in a lump sum, but from the annual installment of the fund, which is gradually invested within 3-5 years.
Capital commitment
Right!
- Chinese name
- Capital commitment
- nickname
- Capital commitments, committed capital
- Capital commitments are also called capital commitments, or committed capital. Committed capital refers to the capital committed to a venture capital fund. The capital is generally not provided in a lump sum, but from the annual installment of the fund, which is gradually invested within 3-5 years.
- As a fund partner, each investor in a private equity fund commits to invest a specified amount of funds within a specified period. The fund uses this as a capital commitment for a limited partnership.
- The sum of capital commitments is equal to the total amount of the fund. To participate in the operation of the fund, limited partners and general partners must make capital commitments. For example, if you want to participate in the operation of the 51-funded project network, you must make a financial commitment.
- Capital commitments are also called capital commitments, or committed capital. Committed capital refers to the capital committed to a venture capital fund. The capital is generally not provided in a lump sum, but from the annual installment of the fund, which is gradually invested within 3-5 years.
- With the approval of the State Council, the National Development and Reform Commission and other ten ministries and commissions jointly formulated the "Interim Measures for the Management of Venture Capital Enterprises" on April 14, 2012, which provided special legal protection for venture capital enterprises.
- The relevant person in charge of the Development and Reform Commission stated that the Measures provide for the number of investors and the investment amount of a single investor, and provide a legal basis for venture capital companies to raise funds through private placements. Venture capital enterprises established as companies can be entrusted to manage The advisory agency is responsible for its investment management business and provides legal protection for the implementation of entrusted management. Venture capital companies can implement a committed capital system. If the committed paid-up capital is not less than 30 million yuan, the initial capital in place is only 10 million yuan. , The remaining capital can be made up in the next 5 years.
- The "Measures" stipulates that "venture investment enterprises can invest in full assets abroad"; "venture investment enterprises can invest in equity and preferred shares, convertible preferred shares and other quasi-equity methods". According to the Measures, venture capital investment enterprises can extract a certain percentage from the realized investment income as performance compensation for managers or management consultants; "VC investment enterprises can enhance their investment capabilities through debt financing within the scope prescribed by law."
- On April 20, 2012, the G20 pledged to inject more than $ 430 billion into the IMF. These countries, including China, will work together to avoid the new financial crisis. [1]