Private placement fund refers to a securities investment fund that raises funds from specific investors in a non-public way and invests in specific objects. Private equity funds are raised by means other than mass communication, and promoters set up investment funds to invest in securities by collecting funds from non-public multi-subjects. Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The assets raised by private equity funds usually include buying and selling stocks, equity, bonds, futures, options,
1. The characteristics of private equity funds mainly include the following aspects: The first aspect is that the threshold of private equity funds is relatively high. The second aspect is the limited liquidity of private equity funds. The third aspect is private equity funds, because they are sold to specific investors, so their information disclosure is relatively small. Another is that private equity funds generally pursue positive returns, and private equity funds generally have development prospects. Relatively speaking, there are good investment targets and good profitability, so generally speaking, they will be sold together with stakeholders.
2. Internationally, there are three ways to set up private equity funds: one is company system, the other is trust system, and the third is limited partnership system. Trust system is generally not adopted because of its high requirements on start-up capital and large scale. In addition, due to various restrictions, corporate funds are relatively small and basically gone. In addition, most of them are limited partnerships now, because limited partnerships have no restrictions such as funds and are more flexible, so most of them now adopt this way.
3. There are several operating modes of private equity funds: one is venture capital funds, so venture capital funds mainly choose some promising but high-risk investment projects. The other is the industrial investment fund, which has a relatively stable investment income. The other is M&A investment fund, so it is mainly to choose these promising companies and then make mergers and acquisitions. After the merger, they will be profitable in the future, so they can sell or get dividends.