1. Ways to raise funds

Public offering is to raise funds through public offering;

Private placement is to raise funds through non-public offering. The law strictly stipulates that private placement cannot publicize and raise funds. For example, we often see posters of promotional products all over the street, which is illegal.

2. Funding objectives and thresholds

Public offering is open to the general public, with no limit on the number of people and no investment threshold.

Private placement, the target of raising is a small number of qualified investors, 3 million financial assets certificates or income certificates of more than 500,000 in the last three years, each fund has the largest number of people, and the personal investment threshold is above 6,543,800+0,000.

3. Product scale

Public offering, the product scale is generally several hundred million, or even tens of billions, and the scale is relatively large.

Private placement is much smaller than public offering, usually tens of millions or billions, but the operation is more flexible.

4. Information disclosure

Public offering, investment objectives, investment portfolio, net product value, etc. Require strict disclosure.

Private placement, there is no clear requirement above, only investors who buy products are properly disclosed, and the confidentiality is relatively strong.

5. Investment restrictions

Public offering has strict restrictions on investment varieties, investment proportion and matching between investment and fund types;

Private placement is relatively flexible in investment, which can be short positions or Man Cang, and can participate in the investment of various financial products such as stocks, stock index futures and commodity futures.

6, the pursuit of goals

Public offering, mainly rely on the collection of "management fees" to maintain operation, drought and flood protection. If the scale is large enough, it will be difficult for fund managers to make money, which is not entirely in the interests of investors.

In private placement, fund managers mainly rely on "performance commission" to survive and advance and retreat with investors. Only when investors have eaten can managers have porridge to drink.

Extended data:

I. Concept

1. Public Offering of Fund is a securities investment fund that is supervised by the competent government department and publicly issues beneficiary certificates to unspecified investors. Under the strict supervision of the law, these funds have industry norms such as information disclosure, profit distribution and operation restrictions.

2. Compared with public offering, private equity funds are defined as public offering and private offering, or public offering and private offering according to the different ways of issuing securities and whether they issue securities to unspecified public.

Second, the classification knowledge of funds

1. Funds can be divided into public offering and private offering according to whether or not to raise funds for the public, and securities investment funds (with stocks as the target), futures investment funds (with futures contracts as the target), monetary investment funds (with foreign exchange as the target), gold investment funds (with gold as the target) and FOF according to the main investment targets.

2. The fund's private placement fund (fund investment fund, with PE and VC funds as the target), REITs real estate investment trust (real estate investment fund, with real estate as the target), TOT trust of trust (trust investment fund, with trust products as the target) and hedge fund (also called arbitrage fund, with arbitrage space as the target) have many of the above fund forms in western countries, but there is only this concept in China, and there is no entity (private placement).

The so-called funds in China should be called securities investment funds accurately, such as Dacheng, Huaxia, Jiashi and Bank of Communications Schroeder. These Public Offering of Fund are strictly supervised by the CSRC, and their investment direction and proportion are strictly restricted. Most of them manage tens of billions of dollars.

3. Private placement is strictly restricted in China, because private placement can easily become "illegal fund-raising". The difference between them lies in whether to raise funds for the general public and whether the ownership of funds has been transferred. If more than 50 people are raised and transferred to personal accounts, it is regarded as illegal fund-raising, which is a very serious economic crime and can be sentenced to death, such as Wu Ying in Zhejiang, Delong in Tang Wanxin and Madoff in the United States.

4. China's private placement is mainly divided into: private equity investment funds, also known as Sunshine Private Placement after Sunshine (investing in stocks, such as Chunxin, Wudang Assets, Zhongxin Private Equity Alliance, Xingshi and other asset management companies).

Private real estate investment funds (such as Xinghao Investment), private equity investment funds (that is, investing in unlisted companies, PE for IPO purposes, such as CDH, Hony, KKR, Goldman Sachs, Carlyle and Han Hong) and private venture capital funds (that is, risky VCS, such as Lenovo Investment, Softbank and IDG).

Public Offering of Fund, such as Dacheng, Jiashi, Huaxia and other fund companies are all securities investment funds, which can only invest in stocks or bonds, and cannot invest in unlisted company equity, real estate or venture enterprises, while private equity funds can.

References:

Public offering _ Baidu Encyclopedia Private placement (financing means) _ Baidu Encyclopedia