Private equity fund target:
1, TMT: online games, e-commerce, vertical portals, digital animation, mobile wireless value-added services, e-payment, 3G, RFID, new media, video, SNS;
2, the new service industry: financial outsourcing, software, modern logistics, branding and channel operations, translation, film industry, TV shopping, mail order;
3, high-growth chain industries: catering, education and training, dental, health care, supermarkets and retailers, pharmacies, cosmetic sales, sports, apparel, footwear, budget hotels;
4, the field of clean energy, environmental protection: solar energy, wind energy, biomass energy, new energy vehicles, batteries, energy-saving buildings, water treatment, exhaust waste treatment;
5, biomedicine, medical equipment;
6, four trillion beneficiary industries: high-speed rail, cement, special equipment.
Expanded reading of the introduction of private equity funds
Private equity funds generally refers to funds engaged in private equity (unlisted company equity) investment. Private equity is relative to public equity. Currently, all funds in our country are raised through public offerings, called public funds. If a fund is not raised through public offering, but privately to a specific audience, it is called a private fund.
Characteristics of private equity investment funds
(A) private funds, but broad channels
Private equity funds are relatively narrower than public funds in terms of the scope of the object of collection, but the object of its collection are strong financial strength, capital composition of higher quality institutions or individuals, which makes its collection of funds in the quality and quantity of the fund is not necessarily inferior to the public equity funds. It can be individual investors or institutional investors.
(II) equity investment, but in a flexible manner
In addition to pure equity investment, there are disguised equity investment methods (such as convertible bonds or corporate bonds with subscription rights, etc.), and a combination of equity-based and debt-based investment methods. These methods are a great progress of private equity in recent years in terms of investment tools and investment methods. Although equity investment is the main investment mode of private equity funds, and its dominant position will not be easily shaken, but the rise of a variety of investment methods, a variety of investment tools used in combination, has also formed an unstoppable trend.
(C) Risky, but rewarding
The risk of private equity investment stems from its relatively long investment cycle. Therefore, if private equity funds want to make a profit, they must put in some effort not only to meet the financing needs of enterprises, but also to bring benefits to enterprises, which is destined to be a long-term process. Furthermore, the cost of private equity investment is high, and this point also increases the risk of private equity investment. In addition, the high risk of private equity fund investment is also related to the poor liquidity of equity investment. Unlike securities investment which can be bought and sold directly in the secondary market, equity investment has limited exit channels, and the limited number of exit channels may not be very fluid in a particular geographic region or at a particular time. Generally speaking, after PE successfully exits a portfolio company, its profit may be 3 to 5 times, while in China, the figure may be 20 to 30 times. The high returns have induced huge amounts of capital to pour into the PE market.
(4) Participate in management, but do not control the enterprise
Generally speaking, there is a professional fund management team in the private equity fund, which has rich experience in management and market operation, and is able to help the enterprise formulate the development strategy to meet the market demand, and make improvements to the operation and management of the enterprise. However, private equity investors only participate in the management of the enterprise, not for the purpose of controlling the enterprise.