Subject The article addresses closed-end mutual funds as the best possible organizational-legal form of private equity funds for qualified investors. Objectives The purpose of the study is to choose the optimal form of incorporation of private equity funds for qualified investors and identify its strengths and weaknesses. Methods In the study, we employ a comparative and logical-structure analysis, a systems approach, subject-object and dialectical methods. Results The optimal organizational-legal form and type of operation of private equity funds for qualified investors is a closed-end mutual fund. We analyzed the legal framework and experience in creation and operation of private equity funds and systematized the stages of fund creation. The analysis also enabled to identify advantages and disadvantages for the fund participants. Relevance The findings may be useful for management companies creating a private equity fund, for investors choosing a private equity fund for their investments based on advantages and disadvantages of this form of incorporation.
Keywords: direct investment, private equity fund, closed-end mutual fund
References:
Kulebyakin K.A. [Closed-end mutual funds of venture capital investments in the system of investment in innovation activities in Russia]. Vestnik Yaroslavskogo gosudarstvennogo universiteta im. P.G. Demidova. Seriya Gumanitarnye nauki = Vestnik of Yaroslavl State University. Series Humanities, 2011, no. 2, pp. 198–201. (In Russ.)
Lavrent'ev M. [Types of Russian mutual funds and risks of investing in modern economic conditions]. Finansovaya zhizn' = Financial Life, 2012, no. 2, pp. 80–85. (In Russ.)
Postalyuk M.P., Nurmukhametov R.R. [Investment funds in the Russian economy: A concept, principles of organization and typology]. Vestnik TISBI = TISBI Bulletin, 2013, no. 2, pp. 146–157. (In Russ.)
Spiridonova A.V. [Trends and prospects for development of the closed-end mutual fund market]. Statistika i Ekonomika = Statistics and Economics, 2013, no. 6, pp. 106–109. (In Russ.)
Anesyani S.A., Istomina Yu.S. [Using the closed-end investment fund mechanism in the project for international financial center creation]. Novye tekhnologii = New Technologies, 2013, no. 2, pp. 17–23. (In Russ.)
Strelina O.V. [A new type of trust agreement on mutual fund management]. Biznes v zakone = Business in Law, 2011, no. 6, pp. 71–73. (In Russ.)
Novye tendentsii v razvitii rossiiskoi modeli korporativnogo upravleniya: postkrizisnye uroki i vyvody [New trends in the development of Russian corporate governance model: Post-crisis lessons and conclusions]. Yekaterinburg, Ural State University of Economics Publ., 2011, 302 p.
Nozhkin S.A. [Material terms of trust agreement defining the specific features of investment fund management]. Vestnik Krasnodarskogo universiteta MVD Rossii = Bulletin of Krasnodar University of the Ministry of the Interior of Russia, 2012, no. 2, pp. 35–39. (In Russ.)
Lyakhnova A.N. [On mutual funds for qualified investors implementing investment and development projects]. Finansovaya ekonomika = Financial Economics, 2013, no. 1-2, pp. 49–56. (In Russ.)
Kovaleski D. Private Equity Firms Set to Feast on Manager Buyouts. Pensions and Investments, 2003, vol. 31, no. 7.
Bacon N., Wright M., Demina N. et al. The Effects of Private Equity and Buy-outs on HRM in the UK and the Netherlands. Human Relations, 2008, vol. 61, no. 10, pp. 1399–1433.
Zhuk E.A. [Qualified investor in the EU, USA and Russia: Legal models]. Rynok tsennykh bumag = Securities Market, 2008, no. 5, pp. 47–49. (In Russ.)
Egorov V.S. [Making a discretionary management contract for mutual funds]. Obrazovanie. Nauka. Nauchnye kadry = Education, Science, Academic Staff, 2014, no. 3, pp. 41–43. (In Russ.)
Evstratova U.A. [Legislative innovations as new opportunities of unit funds]. Rynok tsennykh bumag = Securities Market, 2008, no. 5, pp. 28–32. (In Russ.)
Yafyasov R.R. [Structural differences of private equity funds and venture capital funds in Russia]. Voprosy ekonomiki i prava = Problems of Economics and Law, 2011, no. 32, pp. 7–10. (In Russ.)
Emokhonova Yu.M. [Tools of trust management of direct investment: Methodological aspects]. Sibirskaya finansovaya shkola = Siberian Financial School, 2016, no. 4, pp. 180–184. (In Russ.)
Mugaeva E.V. [The Russian market of direct and venture investments]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2012, no. 10, pp. 24–28. (In Russ.)
Korobkina N. [Who needs GIPS in Russia]. Rynok kollektivnykh investitsii = Pooled Investment Market, 2012, no. 10, pp. 45–46. (In Russ.)
Fedulova E.A., Emokhonova Yu.M. [Organizational forms of collective investing of direct investment: Problems and development prospects]. Sibirskaya finansovaya shkola = Siberian Financial School, 2015, no. 4, pp. 81–84. (In Russ.)