wood jewelry display wholesale What is GP, LP, PE, VC, FOF

wholesale jewelry making supplies usa First, the first is GP, LP
ordinary partners (general
partner, GP):
Most of the time, GP, LP exist at the same time. And they mainly exist in some companies that need large amounts of capital investment, such as private equity funds (PE, Private
equity), Hedge
FUND, Venture
CAPITAL. You can simply understand that GP is the company's internal staff. In words, GP is those who make investment decisions and internal management of the company.
For example: Investment company A now has four ordinary partners: GP1, GP2, GP3, and GP4. They jointly have 100 % shares of investment company A. Therefore, the overall profit of the investment company A, dividend losses, etc. are directly related to them.
If you don't understand, give a simple example. In the Innovation Workshop, Mr. Li Kaifu is a classic ordinary partner.
Limited
partner, LP):
I we can simply understand as a funder. Many times, a project needs to invest tens of millions or even hundreds of millions of funds. (Most investment companies, there will be many different projects), and the GPs who invest in the company do not have so much money -or they are unwilling to invest in so many company funds to invest in one project. And there are always people in this world. They have a lot of cash, but they do not have good investment -to eat interest in banks in the financial industry. As a result, LP was born.
LP will be handed over to GP after a series of procedures, and GP will take LP's money to invest in the project, get the profit from it, and the two parties will be divided into this profit. This is the classic "you (LP) money, I (GP) contribute" in real life.
In order to allow everyone to have a more comprehensive understanding, I will talk about something about LP in the whole process.
(Because I used to study in the United States, most of this knowledge comes from the earliest learning from the United States, so I will compare the United States with China below to let you have a more comprehensive understanding.) N in the United States, in most cases, LP has a minimum investment amount -this number is generally 6 million US dollars. In China, most of them know that most of them are 6 million yuan. In other words, if you have no way to invest in 6 million funds at one time, others do not even have a chance to enter the venue. In addition, in order to avoid excessive LP capital injection, most companies also have the highest investment amount -commonly ranging from 10 million to 20 million. But this amount is not inevitable. If the LP itself is more powerful, it can even be helped during the investment process, and the investment amount of several billion can be seen.
In addition, LP's funds generally have a lock-upperiod, which is generally ranging from one year to several years (depends on the company's specific investment project). In order to ensure the sustainability of the investment (the short investment cycle will lead to the exit without starting to make money). In other words, if you invest in the company 6 million, you can only withdraw the money out one year later.
So how does GP get profits?
In the United States, the company generally follows the 2/20 charging structure (TWO
ANDTWENTY
Fee
structure) — that is, 2 % management fee (
fee) and 20 % of 20 % Extra income fees (
fee). (The 2/20 structure has been broken by some companies after the 08 financial turmoil, but after all, it is not a routine. And the company that breaks the structure does not do particularly excellent cases)
In in order to allow everyone to better understand, we are below Another case analysis:
I assumes that LP1 invested 6 million to invest in company A. One year later, LP1's additional income was 1 million. Then the cost of LP1 to be paid to the investment company A will be:
6 million*2 % 1 million*20 % = 320,000. That is, LP1 can eventually benefit 680,000, and investment company A can benefit 320,000. By the way, no matter how much money is made or losing money, the 2 % management fee is not available. The additional income fees must be delivered after making money.
and in China, not all companies have received 2 % of management costs. But 20 % of the additional income fees are basically the same. (I have heard 15 % and no 2 % management fee has been heard, but the scale of funds is not too large. It is estimated that it is reluctant to approach 1 billion.)
. The next step is angel investment, VC, PE and IB
In order to let everyone have a more intuitive understanding, I will talk about Angel
investor and IB, because they just show the four stages of investors.
before explaining these four terms, I sorted them from small to large according to the investment quota; they were Angel, Venture
CAPITAL, VC), and private equity funds (Private
equity, PE), and investment banks (
banking, IB)
will start to introduce one by one (Note: The amount of funds mentioned next is only a risk average, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value, not an absolute value. Do not determine what an angel or venture capital or other.)
Angel
:
most of the time, most of the time, the company that the angel investment selection will be They are very, very early companies, and they don't even have a complete product, or only one concept. (For example, I have a friend. His graduation design works are a sober glasses. The workmanship is very rough and cannot enter the market at all. And at present, an incubator studio in Shenzhen, which is invested by the angel, conducts development and research.)
is often not very large in investment in angel investment. The shares ranges from 10 % -30 %. In terms of numbers, the investment quota of the United States and China is basically close. Most of the time, these companies need at least 5 years to go public.
In addition, some angel investment will provide some guidance and help to the enterprise, and even give certain support. If you don't know, the Innovation Workshop is doing an angel investment at the beginning.