I. Basic elements

According to the requirements of the Trust Law of the People's Republic of China, private equity fund refers to the personal behavior that the trustee entrusts his property rights to the trustee according to his trust in the trustee, and the trustee carries out management methods or penalties in his own name according to the trustee's intention for the benefit of the beneficiary or special purposes.

The contractual fund is also called the Unittrustfund, which means that professional venture capital institutions (financial institutions and companies) inject capital into each other to establish an equity investment fund enterprise. As a trustee, the equity investment fund enterprise sells the benefit certificate-"Stock Fund Enterprise Ownership Certificate" by signing a "Private Equity Fund Contract" with the client to raise funds for leisure assets in social development.

in essence, both of them are "entrusted by others to invest in wealth management". Second, the threshold of project investment and profit

Both of them are from one million, but the number of investors below three million for private equity funds is limited to 5, while that for contractual funds is 2, and micro-loans are more convenient. Third, the difference between the two administrators

The administrator of the private equity fund is the futures company authorized by the investor. At present, there are 68 futures companies registered in China.

The administrator of contract funds is the registered fund principal of China Foundation. At present, there are tens of thousands of enterprises in China that are qualified to sell and manage contract funds.

It can be seen that the private equity fund is an entrustment agreement signed immediately between the trustee and the futures company; In the middle of the contract stock fund, a "fund custodian" role is added. The fund custodian, also known as the stock fund custodian, is the defendant who is responsible for property storage, trading supervision, information disclosure, asset settlement and financial accounting in the operation of securities fund investment according to the provisions of relevant laws and regulations. Fund custodians are the interests of stock fund holders, which means that they are generally served by banks or trust and investment companies with overall strength.