Private equity--a good choice for long-term investment

Private equity is a highly profitable and risky asset. In the pursuit of high returns, investors in the long-term investment and potential losses, should be fully prepared and bear capacity.　　As a component of the portfolio, private equity can improve the risk-return characteristics of investors ' overall investment structure. Text/Loufengfang Private equity Investment (PE), refers to the unlisted equity, or listed companies in private equity investment.　　Private equity has been a hot topic in the investment world. Financial investors in terms of profitability, private equity investment generally through the listing, mergers and acquisitions, repurchase, transfer and other means of withdrawal of profits, and may be in the investment at that time agreed to the future exit mechanism. Private equity is indeed ubiquitous, from industry barons to alley shopkeepers. But owning private equity does not mean private equity, just as opening an airline does not equate to an airline stock.　　The difference is that the business owner is the person who invests in the actual operation, while the private equity investor is the person who buys and sells private equity, and is a financial investor. Shares for the enterprise, private equity and listed stocks are common.　　Like equities, private equity is also a risky venture, but the shift from private equity to listed stocks often creates wealth myths, the main attraction of private equity. Private equity is not an investment that everyone can sit in front of a computer screen, and its own characteristics keep most people out of the door. Unlike public offering securities, investors are unable to find private equity markets that are free to access, subscribe to, and trade as stock exchanges, and unlisted companies do not disclose transparent disclosure of information, and it is almost impossible for unprofessional institutions to fully understand the investment risks and earnings prospects of private equity; Moreover, listed stock trading is standardized,　　While the pricing and other conditions of private equity transactions are fully negotiated, high demand for investors ' expertise and bargaining power; Of course, private equity often needs to add complex deals and exit arrangements involving more third parties in order to ensure that the exit is achieved, otherwise investors may become long-term shareholders who simply earn dividends. The advantage of a trust company is that private equity can be divided into many small categories, with different characteristics. According to the development stage of the investment enterprise, it can be divided into the early venture capital, the maturity of the listed companies, the merger fund of the industry integration period, the acquisition of non-performing assets, etc., which can be divided into common stock, mezzanine financing including subordinated debt and preferred stock, merger and acquisition loans, etc., not limited to simple common stock　　, according to the nature and quantity of the object of the private equity investment product, it can be divided into the investment of only one enterprise, and the fund type portfolio composed of several objects, as well as the investment of level two funds of other equity funds. In financial institutions, trust companies have long been active in the field of direct investment, which has the advantage of developing private equity investment management business in terms of business compliance and professional competence, which is unmatched by private investment firms and other financial institutions. Hangzhou Industrial and Commercial Trust Co., Ltd. (hereinafter called Hang) in private equity investmenthas made fruitful explorations and attempts in the field of capital. In the underlying transaction of a single or multiple project investment fund product, private equity technologies such as callable preferred shares, and common shares with selling options are used.　　In the area of risk control, Hang has used even higher-than-preferred directors and financial controls to ensure that investors ' interests are maintained to the maximum extent possible. Unlike credit investments such as loans, equity investment, pure private equity through listing or other means of exit is uncertain, which shows that its high return is the risk of premium compensation. At the same time, on the other hand, the private equity is a long-term investment, investors on the investment period and loss may be fully prepared and bear the capacity.　　As a component of the portfolio, private equity can improve the risk-return characteristics of investors ' overall investment structure. At present, Hang is actively developing a highly profitable long-term equity investment product using flexible strategies to meet the risk-benefit preference of aggressive investors.