Tuesday, June 28, 2011

Common investment

Common investment despite refers to the investment the same company, but the two parties involved in the limited partners, fund this word has special meaning. If the fund's limited partners with common investment authority, he can directly on the private equity funds in support of the company investment. So in the company have partner of two independent shares, part of it is through the fund of the indirect gain, and another part is direct investment get. Some private equity companies in order to encourage investors to investment fund, provide for the common investment authority.
Do this with one advantage is all private equity investing in funds, compared with a agencies can earn higher returns. The agency, don't need to pay the fee for the fund with rights and interests and will return a gifted 20%. But to carry on the successful joint investment, the agency is enough to understand the market, be able to assess the quality of the joint investment opportunities. 

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