What is a Private Equity Fund?
What is a Private equity fund?
The Private equity fund is a pool of resources destined for investment in publicly-held, closed or limited liability companies, which are in the development phase. It is constituted in the form of a closed condominium, in which the shares are only redeemed at the end of their duration or when their settlement is resolved at the shareholders’ meeting.
Through its management team, it must participate in the decision-making process of the investee company, with an effective influence on the definition of its strategic policy, management and corporate governance.
they must hold at least 90% of their equity invested in shares, simple debentures, subscription bonuses or other securities convertible or exchangeable into shares issued by publicly or privately held companies, as well as in securities or securities representing participation in limited liability companies. The exception is simple debentures, the maximum limit of which is 33% of the fund’s subscribed capital.
The Fund may invest up to 20% of its subscribed capital in assets abroad, provided that such assets have the same economic nature as the assets mentioned above. In addition, it may invest in shares of other Investment Funds in Equities or in shares of equity funds – access market for purposes of meeting the minimum limit of 90%.
The Private equity fund that obtains direct financial support from development agencies is authorized to borrow directly from these development agencies, limited to the amount corresponding to 30% of the fund’s assets.