Core Viewpoint - The establishment of specialized market-oriented debt-to-equity swap funds is an innovative financial approach that plays a crucial role in alleviating corporate debt risks, promoting corporate restructuring, and optimizing capital structures [1][2][13] Group 1: Participants and Their Roles - The implementing institution (GP) plays a central role in initiating the fund, managing operations, and overseeing the restructuring of enterprises [3] - Equity investment institutions (LP) provide funding for debt-to-equity projects, aiming for long-term capital appreciation through successful corporate restructuring [4] - Banks utilize wealth management funds to participate in debt-to-equity funds, optimizing asset allocation and helping to mitigate client enterprises' debt risks [4] - Qualified investors, including various institutions and individuals, contribute as limited partners to share in the returns from debt-to-equity projects [4] - Restructured enterprises are the targets of debt-to-equity swaps, aiming to reduce debt ratios and optimize capital structures [5] Group 2: Operational Process - The fund establishment phase involves the GP initiating a private fund and attracting LPs, while also potentially setting up sub-funds with restructured enterprises to consolidate resources [6] - In the investment and restructuring phase, the fund enters restructured enterprises through capital increases or equity transfers, with the GP managing the restructuring process [7] - The exit phase for restructured enterprises involves repaying creditors after value enhancement, while sub-funds may exit by transferring equity or facilitating IPOs of subsidiary companies [8][9] Group 3: Advantages and Significance - The model reduces corporate leverage by converting debt into equity, thereby decreasing debt burdens and enhancing financial stability [10] - The entry of debt-to-equity funds provides new capital and resources, aiding in capital structure adjustments and improving capital quality [11] - Professional management and restructuring measures from the GP help enterprises address operational issues and achieve strategic transformations [11] - The model offers diversified investment options, catering to various investor risk and return preferences, thus promoting the development of financial markets [12]