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The Reconstruction and Rebirth of Private Equity Funds

2024-07-30

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On April 29, the Asset Management Association of China (hereinafter referred to as "CAMAC") issued the "Operation Guidelines for Private Securities Investment Funds" (hereinafter referred to as the "Operation Guidelines"), which provided norms for the high-quality development of private securities investment funds, and also launched a "supply-side reform" in the private equity industry.

According to the reporter's interview, since the release of the "Operation Guidelines", many private equity managers have taken the initiative to modify fund contracts in accordance with the latest requirements, liquidate "zombie funds", and standardize information disclosure methods and channels. At the same time, relevant securities regulatory bureaus have carried out on-site inspections to urge private equity managers to improve their compliance systems and clean up "fake private equity" and "disorderly private equity". As of July 29, more than 340 private equity managers have cancelled their registrations in the past three months.

On August 1, the "Operation Guidelines" will be officially implemented. In the eyes of private equity industry insiders, the further improvement and refinement of the private equity industry regulatory system is a challenge, but also a good medicine. Especially under the test of the market and the crisis of confidence of investors, private equity funds urgently need to be reborn. In the future, under the guidance of supervision, private equity managers must put the interests of investors first, standardize business development, and continuously improve their professional capabilities, so that they can continue to develop in the wave of asset management. (Shanghai Securities News)