What is the meaning of industrial investment fund?

Lingshi Financial will answer for you: industrial investment is a large category of concepts, commonly known as venture capital and private equity investment abroad, which generally refers to equity or quasi-equity investment in unlisted enterprises with high growth potential, and participates in the operation and management of invested enterprises, in order to achieve capital appreciation through equity transfer after the mature development of the invested enterprises.

Industrial investment** generally refers to equity or quasi-equity investment in unlisted enterprises with high growth potential, and participation in the operation and management of the invested enterprises, with a view to achieving capital appreciation through equity transfer after the invested enterprises mature.

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Industrial investment is a large category of concepts, commonly known as venture capital and private equity investment, which generally refers to equity or quasi-equity investment in unlisted enterprises with high growth potential, and participate in the operation and management of invested enterprises, in order to achieve capital appreciation through equity transfer after the mature development of the invested enterprises. According to the different stages of the target enterprise, the industry can be divided into seed stage or early stage, growth stage, reorganization, etc. The industry** involves multiple parties, including:

Shareholders, managers, custodians, accountants, lawyers and other intermediary service institutions, of which the manager is responsible for the specific investment operation and daily management of the institution.

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Industry, also known as industrial investment, is a model and a collective investment system of benefit sharing and risk sharing.

Industrial investment** originated in the late 19th century, when some private individuals and bankers invested their surplus money in industries such as oil, railways and steel. Basically, it comes in the form of a trust, which is the earliest industrial investment**.

The industry is known as venture capital in foreign countries, and it makes quasi-equity investments in potential unlisted public deeds and makes capital appreciation through equity transfer.

What is Industrial Investment**? What are the characteristics of industrial investment**?

Industrial investment** generally refers to a non-listed enterprise with high growth potential, after the invested enterprise matures, through equity transfer, equity or quasi-equity investment, to participate in the operation and management of the invested enterprise, so as to achieve capital appreciation. So, what are the characteristics of industrial investment**?

Industrial investment** has four main characteristics:

1. The investment targets are mainly non-listed enterprises.

2. The investment period is usually 3 7 years.

3. Actively participate in the operation and management of the invested enterprises.

Fourth, the purpose of investment is to promote the development of the enterprise through investment based on the potential value of the enterprise, and to achieve capital appreciation income through various exit methods at the right time.

The industry involves many parties, including shareholders, managers, custodians, accountants, lawyers and other intermediary service institutions, of which the manager is responsible for the specific investment operation and daily management.

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There are several types of open-ended:

1. Currency**.

Currency-type funds are mainly invested in treasury bonds, corporate bonds, bank deposits and other money markets, with the characteristics of small risk and stable returns.

2. Bond type**.

The main investment objects of bond type ** are fixed-income financial instruments such as treasury bonds and financial bonds, which have the characteristics of relatively small risk and relatively fixed returns. However, because there will be a small amount of funds invested in the market, there is a possibility of loss, and the income cycle of the bond type is longer, which is suitable for investors to hold for a long time.

3. Mixed type**.

Mixed type is to invest in different industries, because the performance of different industries in the face of market risk is different, so it can play a role in diversifying investment risks, belonging to medium risk, it is recommended that investors hold it for a long time so that they can share the market risk evenly and obtain considerable returns.

4. **Type**.

**Type** mainly invests in the capital market, only a small amount of funds are invested in bank deposits or bond markets, **type** risk is relatively high, because the income of **type** will change with the fluctuation of **type**, so **type** requires investors to have a strong risk tolerance.

Different types of investment risks are different, investors can buy some according to their investment expectations and risk tolerance, and finally remind everyone that any investment is risky, and please invest cautiously.

At present, China's industrial investment legislation is basically in a state of stagnation, and the established Sino-Swiss cooperation**, China-Belgium direct equity investment**, as well as other venture capital** and real estate investment**, have all adopted a roundabout way to explore different establishment models. Therefore, how to study and design the establishment plan of industrial investment under the existing legal framework is not only directly related to whether it can be successfully raised and operated, but also has positive significance for the development of China's entire industrial investment industry. Combined with domestic and foreign practices, the establishment of industrial investment in China** needs to focus on the following aspects:

1.**Organizational form: Bubu company type or contract type.

The company has the advantages of independent legal personality, standardized governance, direct management and high transparency; However, it is subject to double taxation, and it is not allowed to issue ** units in the interbank bond market, and it is impossible to achieve 100% dividends on profits. The contract type is simple to set up and easy to operate, and can be approved to issue ** units in the inter-bank bond market, and ** income can be fully distributed to ** share holders, ** itself does not need to pay income tax; However, governance is relatively difficult, and the protection of investors is not as good as that of a company**.

2.**Place of registration: domestic or overseas.

Registered in China**, there are no relevant special regulations, no preferential tax policies, the approval process is relatively simple, investors are mainly domestic insurance companies and social security institutions, and the expected rate of return is slightly higher than that of debt financing; For overseas registration**, the legal environment is more complete and mature, and you can choose an overseas location with tax incentives for registration, but the approval process is more complicated, the investor group is wide, and the expected rate of return is higher (generally 12%-16%).

3.**Investment direction. First of all, it is necessary to determine whether it is an infrastructure investment with stable income or a venture capital that requires high returns, and examine the regulatory requirements of the industry to be invested. Then, the investor's requirements for the highest rate of return and its distribution characteristics are analyzed, and the investment is in mature projects or projects under construction. Finally, check the cash flow coordination of different projects and determine the specific investment direction or project.

4.**Size & Duration. The scale is mainly affected by the expected capital needs of the proposed investment project, and the regulator's regulations.