Is it legal to split and transfer private equity fund shares? According to relevant regulations, entities that invest no less than 1 million yuan in a single private equity fund and have net assets of no less than 10 million yuan, individuals with financial assets of no less than 3 million yuan, and individuals whose average annual income in the past three years is no less than Individuals with less than 500,000 yuan are qualified for private equity funds.

The definition of qualified investors is conducive to the risk control of private equity fund managers, which is a protective measure for the private equity fund industry. But at the same time, this also excludes small investors with higher risk appetite from the scope of private equity investors. Whether private equity fund shares can be divided and sold, or purchased collectively, the split and transfer of private equity fund shares has become a controversial issue in the industry.

Is it legal to split and transfer private equity fund shares? Two of these issues are extremely controversial.

1. The distinction between splitting and transferring private equity fund shares and illegal fund-raising

According to the "Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities", without the approval of the People's Bank of China, An activity in which society absorbs funds from an unspecified target, issues a voucher, and promises to repay the principal and interest within a certain period of time. The split transfer of private equity fund shares is essentially a directional entrusted investment model, which is not enough to fully meet the definition of illegally absorbing public deposits. However, it promises investors a specific period of expected annualized return payments and a commitment to invest in a specific period. rate of return, then this kind of commitment will have the characteristics of "repayment of principal and interest", which will be consistent with the characteristics of illegal fund-raising.

2. The issue of the distinction between the splitting and transfer of shares of private equity funds and the unauthorized issuance of stocks, companies, and corporate bonds

Issuing bonds, by its nature, and absorbing deposits are both claims. Financing category. If it is asset management in a general sense, it is essentially different from the behavior of issuing bonds. However, if the asset manager has a clear commitment to repay the principal and interest to investors, and the shares subscribed by investors have standardized product characteristics, and the asset manager provides trading conditions or facilities for such shares, it will be the same as the issuance of bonds. behavior has the same characteristics.