What does buyout fund mean?

Question 1: How many models are there for buyout funds? Which ones are they specifically? There are several common models of M&A funds:

1. Listed companies or subsidiaries + PE (Case: Dongyangguang Science and Technology jointly established a new energy industry M&A fund with Jiupai Capital);

2. Listed company + related party + PE (Case: Zhongheng Group established a pharmaceutical industry M&A fund);

3. Listed company + securities firm/brokerage fund (Case: Kunming Pharmaceutical jointly established a fund under Ping An Securities) Pharmaceutical Industry M&A Fund).

Development trend:

The model of listed companies cooperating with PE or securities firms to set up M&A funds for collaborative M&A will still be a development trend for a long time to come, and the field of investment and M&A will be further expanded. Deepen; hot industries are mainly concentrated in Industry 4.0, medical care, culture, environmental protection, new energy, etc.

Question 2: What does buyout fund mean? It means investing part of the money in the corresponding company and then getting part of the equity. Now many financial institutions are providing this service, such as Yingxingyuan, which covers many fields. You can learn about it

Question 3: What is a buyout fund? Buyout Funds are funds that focus on investing in corporate mergers and acquisitions. M&A funds obtain control of the acquired company by acquiring shares of the acquired company, and then integrate, reorganize and operate the acquired company. After the company's operations improve, it sells its holdings through listing, resale or management buyback. shares and exit.

Question 4: "What is the difference between buyout funds and private equity? Watchdog Wealth will answer it for you."

The general view is that buyout funds are a branch of private equity investment funds. Private equity investment refers to a form of investment that raises capital in a non-public way and invests in corporate equity. Compared with the seed stage, start-up stage, development and expansion stage and Pre-IPO period of enterprise development, private equity investment funds can be divided into angel funds, venture capital funds, growth funds and Pre-IPO funds; for the mature stage of enterprises and Investments in the recession phase are mainly completed by buyout funds.

However, in foreign capital markets, private equity funds mainly refer to merger and acquisition funds, and the corresponding term is venture capital funds; while in domestic capital markets, private equity investment funds mainly refer to investments in Pre-IPO stage funding. The main reason for the difference in connotation of private equity investment funds is that private equity investment funds are not an appropriate standard for classifying various types of investment funds. Private equity investment is characterized by financing methods, while buyout funds focus on transaction methods.

Judging from the development history of private equity investment funds, private equity funds originated from merger and acquisition funds. Before the 1990s, leveraged buyouts were a typical transaction method used by buyout funds, and buyout funds meant leveraged buyouts. Leveraged buyouts peaked in the 1980s and 1990s, gradually shrank as the junk bond market collapsed, and then revived in the 2000s.

Question 5: What is the meaning of buyout fund? What are the operating modes of buyout fund? Because the full name is Buyout Fund, it is a fund form developed in European and American countries in the mid-20th century. As the name suggests, buyout fund is Refers to funds that focus on corporate mergers and acquisitions investments.

Investment method: Acquire the equity of the target company to gain control of the target company, then restructure and transform the target company, and then sell it after a period of time.

Operational models of M&A funds

Currently, there are three operating models of M&A funds carried out by domestic securities firms:

1. Participate in M&A funds led by local ***

It is reported that Shanghai International Group plans to take the lead in establishing a RMB overseas merger and acquisition fund with a scale of tens of billions, and securities companies are expected to participate as investors.

2. Establish joint ventures to establish M&A funds

In addition to cooperating with local governments, many securities firms will also choose to develop M&A business with internationally renowned capital giants.

3. Direct investment model

Direct investment subsidiaries of securities firms take the lead in launching the establishment of M&A funds.

Part of the funds for this kind of M&A fund are provided by the securities firms themselves, and the other part is raised from the public. It means that the direct investment model is conducive to the rapid transformation and accumulation of projects. At the same time, this operating model is likely to become the mainstream of M&A fund business for securities firms in the future.

Question 6: What is a buyout fund? Buyout funds are the "high-end" in PE. If growth PE funds are the "icing on the cake" of "accompanying big money", then buyout PE funds are " Output management" style "Midas turns gold".

M&A funds are funds that focus on the merger and acquisition of target companies. Its investment method is to acquire control of the target company by acquiring the equity of the target company, and then carry out certain restructuring and transformation of the target company, and hold It will be sold after a certain period of time. The difference between buyout funds and other types of investment is that venture capital mainly invests in entrepreneurial companies, while buyout funds choose mature companies; other private equity investments are not interested in corporate control, while buyout funds aim to obtain control of target companies. right. Buyout funds often appear in MBOs and MBIs.

Question 7: What is a buyout fund and what is mezzanine capital? M&A funds are a very important component of private equity funds, generally accounting for 60%-70% of the entire private equity fund fundraising and management scale, and occupy a very important position in private equity funds. M&A funds generally improve corporate governance by reorganizing the target company's board of directors and closely monitor the target company's operating performance.

Mezzanine capital is a term that appears in the financing process of mezzanine financing. It is aimed at the provider of funds in the financing process, that is, the investor.

Mezzanine Capital is a capital form with returns and risks between corporate debt capital and equity capital. It is essentially long-term unsecured debt-type risk capital. When a company goes through bankruptcy liquidation, senior debt providers are paid off first, followed by mezzanine capital providers, and finally the company's shareholders. Therefore, for investors, the risk of mezzanine capital is somewhere between senior debt and equity.

Here is a detailed introduction: baike.baidu/view/1346954?fr=ala0

Question 8: What is a merger and acquisition fund? Investments mainly invest in entrepreneurial companies, and M&A funds choose mature companies; other private equity investments are not interested in corporate control, while M&A funds aim to obtain control of target companies. (Southern Fortune Network Fund Channel)

Question 9: The difference between M&A projects and M&A funds. Zhaoyun Hong Kong Stock M&A Fund mainly invests in Hong Kong stocks with opportunities for M&A and reorganization. Investment opportunities always have land, courage and foresight. What's more, you need to have the ground. As the saying goes, take action when it's time to take action!