Industrial investment funds mainly have the following characteristics: First, the investment targets are mainly non-listed enterprises. Second, the investment period is usually 3-7 years. Third, actively participate in the operation and management of the invested enterprises. Fourth, the purpose of investment is to promote the development of enterprises through investment based on the potential value of enterprises, and realize capital appreciation benefits through various exit methods at the right time.
Forms of industrial funds:
1. Corporate industrial investment funds exist in the form of joint-stock companies or are established in the form of limited partnerships. Each investor of the Fund is a shareholder or investor of the Fund Company, and has the right to make suggestions and queries on the operation of the company (enterprise). The corporate industrial investment fund is a legal person (partner), and the power of the management company hired is limited, and the ownership and management rights are not completely separated. Investors will influence the decision-making orientation of the company to varying degrees, thus restricting the management operation of the fund by the management company to a certain extent.
2. Contractual industrial investment funds do not exist in the form of joint-stock companies. Investors are not shareholders, but only the parties in trust deed and the beneficiaries of funds, and have no right to participate in management decisions. Contractual industrial investment funds are not legal persons, and management companies must be entrusted to manage and operate the fund assets. Ownership and management rights are completely separated, which is conducive to the long-term stable operation of industrial investment funds. Because the management company has enough power to manage and operate the fund, the asset control right of contractual industrial investment funds will not be affected by the intention of many small investors to pursue short-term interests, which is in line with the operation mode of modern enterprise system.
3. Industrial fund investment process
The main process of industrial fund investment is as follows: first, choose the object to invest; Secondly, conduct due diligence; When the target enterprise meets the investment requirements, conduct the transaction structure; Participate in enterprise management after investing in the target enterprise; Finally, after reaching the expected goal, choose to quit the invested enterprise in an appropriate way to complete capital appreciation.