The authors present a broad, detailed, and fair assessment of private equity the business of investing in established companies through debt financed purchases of controlling stakes. (By contrast, venture capitalists support start ups almost entirely through equity.)

The absence of asset custody mechanism is one of the major reasons to explain the outbreak of risk events in P2P online lending, private equity funds and other sectors.

That is that private equity has been sniffing around, and that tells me that this market is about to explode.

And yet there is a major difference between how private equity operates and how a family buys a home. Only a small part of the equity ownership acquired by any private equity fund comes from money provided by the partners who found and operate the fund.

Thus, a debt equity swap of less than 7.5 of the creditors investment would be enough to compensate for the banks losses. And, even if the banks private depositors, whose claims are 39 of the aggregate balance sheet, were excluded, the debt equity swap necessary to compensate for a loss of up to 100 of the equity would be less than 12 of the creditors investment volume.

if the assets sold are equity, the total assets, business income and net assets are respectively the product of total assets, business income and net assets of the invested enterprise and the equity percentage of the investment.

However, before graduates flock to private equity, they should know that only the very big funds can use debt to skew returns for insiders in this way, primarily because only they can raise the capital needed to buy well established companies that are rich in fixed assets, and thus in potential collateral. Smaller private equity funds typically buy into younger, smaller companies without such fixed assets, and the leverage in those deals is commensurately less.

Where after specified parties purchase the non publicly issued shares of the listed company with cash or assets, the listed company purchases assets from the specified parties using the money raised from the same non public issuance, the listed company is deemed to purchase assets through issuing shares.

The fee structure in this overall arrangement is such that the people running the private equity fund want to have as much debt as possible this will increase the way upside returns are calculated, which in turn is the main driver of the compensation that the controlling general partners can receive. More debt, of course, also means more risk but this is not a sector focused primarily on risk adjusted returns.

Bonds, chattels, dividends, shares

if the assets sold are non equity assets, the total assets and the net assets are respectively the book value of the assets and the difference between the related assets and the book value of the liabilities

Property rights should not be interpreted to apply only to privately owned property.

Not covered in the Guide are transactions for the privatization of State property or functions by means of the sale of State property or shares of State owned entities to the private sector.

Chief, Property Control and Inventory Unit Material Management

if the non equity assets do not involve liabilities, the standard for net assets stipulated in Clause (3) of the previous Article does not apply.

Indian equity participation is largely majority owned.

(a) The balance between equity type assets and other assets, such as bonds

(a) A significant number of large pension funds have investments in the following additional asset classes inflation protected securities, high yield bonds and alternative investments (e.g., hedge funds, commodities, forestry and private equities).

H. Privacy and property rights

2 Long term Equity Investments

Appelbaum and Batt document in impressive detail the way in which top tier private equity funds have been able to earn high returns and ultimately enormous wealth for their founders, while not necessarily helping the companies in which they invest. Interestingly, when returns are measured properly, the outside limited partners in private equity including pension funds, insurance companies, and university endowments also do not necessarily do so well.

Regulators have recently woken up to the incentives for excessive leverage in this sector and to the risks that such leverage poses to lenders and the broader economy. Not surprisingly, big private equity firms seem determined to ignore or otherwise circumvent new restrictions.

It is assumed that 4.3 per cent of the Fund's assets are invested in small capitalization funds.

Article 14 An enterprise may accept the capital contribution made by an investor in the form of monetary, real object, intangible assets, stock equity, or specific creditor's right and so on, among which, the specific creditor's right means the convertible bonds issued by the enterprise under law and the creditor's rights that are converted into equity under the related provisions.

(3) Fair price will be for the assets involved in the material assets reorganization and there are no circumstances that can damage the legitimate rights and interests of the listed company and the shareholders

H. Privacy and property rights 54 16

2. Respect for privacy and property

Most of the attention has been fixed on China s 1 trillion in reserves, and its efforts to maintain the value of those assets. Diversification from US Treasury bills by investing some 3 billion in the Blackstone private equity fund this summer was swiftly followed by an embarrassing collapse in value.

Other headlines that have recently reached South Africa were Bain Capital and KKR, the big boys of private equity.

In mid June, the prolonged surge in stock prices finally drove an unnerved China Securities Regulatory Commission (CSRC) to impose restrictions on offline private fund matching. The decision immediately triggered a sell off, with the Shanghai Composite Index falling 2 in just one day.

Likewise, there is scope for removing the antiquated practice of taxing hedge and private equity funds carried interest at a preferential rate. The way home ownership is taxed and subsidized could be reformed more significantly, especially at the top price levels.

3 The assets purchased by the listed company through issuing shares shall be operational assets whose ownership is clear, and the transfer of ownership can be completed within the agreed time period.

Fundline includes portfolio investment funds, private equity funds and companies, venture capital funds, mutual funds and other equity vehicles.

Article 79 The Company shall generally make disclosure of the changes in paid in capital during the reporting period, including capital and share increase, equity transfer and equity incentive, etc.

Widely held and controlled companies differ considerably in the governance problems their investors face. In widely held firms, the concern is about opportunism by managers, who exercise de facto control in controlled firms, the concern is about opportunism by the controlling shareholder at the expense of minority shareholders.

2 If the assets purchased are non equity assets, the total amount is the book value of the assets or the transaction amount, whichever is higher, and the net value of assets is the difference between the related assets and the book value of the liabilities or the transaction amount, whichever is higher

3 By the time the specified parties obtain the shares issued this time, they have continuously owned the rights of the assets they use to purchase the shares for less than 12 months.

But a new book, Private Equity at Work, by Eileen Appelbaum and Rosemary Batt, explains exactly how a few people have become immensely rich through the shrewd strategic use of debt.

Imagine a development bank levering up collateral that comprises post privatization equity retained by the state and other assets (for example, real estate) that could easily be made more valuable (and collateralized) by reforming their property rights. Imagine that it links the European Investment Bank and the European Commission President Jean Claude Juncker s 315 billion ( 350 billion) investment plan with Greece s private sector.

That's the one that John Locke systematized when he said that freedom was rooted in private property rights and the protection of law.

Chapter 5 Special Provisions on the Purchase of Assets through Issuing Shares

Relax. You've got assets... All that CocaCola stock.

The Company shall disclose changes in paid in capital during the reporting period in details, including changes in the total amount of paid in capital and capital structure due to capital or share increase, equity transfer, the implementation of equity incentive plan or other reasons, and disclose the corresponding registered number of approval, price fixing basis and summary descriptions on the input, restructuring and replacement of assets by investors, etc.

Property rights It's not the democracy, folks it's having the rule of law based on private property rights.

(d) Religious organisations that were registered in Latvia until 21 July 1940.