Equity investment funds are usually called private equity investment in China. From the perspective of investment methods, according to the definition of relevant foreign research institutions, it refers to the equity investment in private enterprises, that is, unlisted enterprises. In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback, the shares are sold for profit.

Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.

2. Different rights

Limited partners have the right to assume limited liability for partnership debts at the expense of non-performance of partnership affairs. Therefore, in a limited partnership, the rights of limited partners are restricted to some extent. The revised partnership enterprise law stipulates: limited partners shall not contribute to the partnership enterprise with labor services; A limited partner shall not represent the limited partnership enterprise externally without performing partnership affairs.

Equity investment funds have a small number of PE funds to invest in the equity of listed companies (such as PIPE, which will be mentioned later). In addition, some PE investments, such as mezzanine, also adopt debt-based investment methods.

3. Different characteristics

Equity investment funds mainly raise funds from a few institutional investors or individuals in a private way, and their sales and redemption are carried out by fund managers or fund sales companies through private consultations with investors. In addition, the investment method is also carried out in the form of private placement, which rarely involves the operation of the open market and generally does not need to disclose the details of the transaction.

Limited partnership can effectively combine capital and intelligence, that is, people with financial resources as limited partners and people with professional knowledge and skills as general partners, thus integrating resources and playing a positive role in promoting the development of market economy.

Baidu encyclopedia-limited partnership enterprise

Baidu encyclopedia-stock right investment fund