Government, financial institutions, industrial and commercial enterprises, etc. When issuing securities, you can choose different investors as the issuing targets. Therefore, securities issuance can be divided into two forms: public offering and private offering. Public offering, also known as public offering, refers to the business model in which the issuer widely sells securities to an unspecified public through intermediaries and raises funds from objects without specific restrictions through public marketing. In order to meet the needs of more investors, the number of contracts and the initial amount of public offering are not limited. As the interests of many small and medium-sized investors are involved, the regulatory authorities have very high requirements on the use direction, information disclosure content and risk prevention of Public Offering of Fund. Private placement is a way to raise funds from a few specific investors. Participants should generally have certain economic strength, risk identification and risk-taking ability. In the case of public offering, all legal social investors can participate in the subscription. In order to protect the interests of investors, all countries have strict requirements for public offering. For example, the issuer must have a high credit and meet the various issuance conditions stipulated by the securities authorities before it can be issued.

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The carriers of public offering include stocks, bonds and funds.

Advantages and disadvantages of editing this paragraph

superiority

(1) Public offering is open to a large number of investors, which has great fund-raising potential and is suitable for issuers with a large number of securities issues and a large amount of fund-raising; (2) A wide range of investors in public offering can avoid hoarding securities or being manipulated by a few people; Only publicly issued securities can apply for listing on the exchange, so this issuance method can enhance the liquidity of securities and help improve the issuer's social reputation.

disadvantaged

If the issuance process is complicated, the registration approval time is long and the issuance cost is high.

Edit the difference between public offering and private offering in this paragraph.

Public Offering of Fund's performance benchmark is the most important, and there is also a performance benchmark. Not the pursuit of absolute returns, but the pursuit of relative returns. If a fund manager outperforms the performance benchmark for a long time, he is a successful fund manager. Private equity pursues absolute returns, that is, the bull market makes money and the bear market does not lose money. Investors should make money whether they win or lose. This is the whole orientation of private placement and its starting point, which is different from public offering. This main difference determines the rate design of all private placements, and the operation mode, style and public offering are completely different. Last year was a volatile market, and private placement was a very narrow group. That's an investment product of a rich man, and it's not just any rich man. There is basically no need to spend hundreds of thousands on it. At least your financial assets are more than two or three million, so you may have to match this thing. The scale and net profit are different. At present, the largest private equity fund management company has a basic scale of about 654.38+0 billion. Private placement is such a variety. From the perspective of investment, what is the difference between investing in stocks and public offering and private placement? This stock is completely managed by itself, and Public Offering of Fund is a bit like a semi-trust. Private equity funds are different. Private equity fund is a concept of complete trust. You give him the money. As for a good market, a good private equity fund will give you 95% positions. If it is not good, it will take the initiative to lower you to zero position. This is the concept of carte blanche. Everyone should see clearly what type they belong to. Private placement is the simplest thing. We used to have customers who bought public shares and called us every three days to exchange specific results. Later, when he saw the private equity fund, he called us once a month or two because someone helped him take care of it comprehensively. The products are different, and I think this is the characteristic. [ 1]

Private equity funds originated in the United States. From 65438 to 0976, three investment bankers from Bear Stearns, a famous wall street investment bank, established KKR, an investment company specializing in M&A, which was the earliest private equity investment company. So far, there are thousands of private equity investment companies in the world, among which KKR, Carlyle and Blackstone are the best.

Edit the status quo of this paragraph

After 30 years of development, foreign private equity investment funds have become an important financing means after bank loans and IPO. Foreign private equity investment funds are large in scale, with a wide range of investment fields, wide sources of funds and diversified participating institutions. At present, the proportion of private equity investment in GDP in western countries has reached 4% to 5%. So far, there are thousands of private equity investment companies in the world, among which Blackstone, KKR, Carlyle, Bain, Apollo, Texas Pacific, Goldman Sachs, Merrill Lynch and other institutions are outstanding. In 2006, global private equity funds raised $21500 million from the capital market, and the total investment of global private equity investment funds reached $738 billion, double that of 2005. Among them, there are 9 private equity transactions with a single amount exceeding $654.38+000 billion.

Please edit this paragraph for details.

Classification of funds Knowledge funds can be divided into public offering and private offering according to whether 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 funds (with PE and VC funds as the target). REITs real estate investment trust (real estate investment fund, the subject matter of which is real estate), TOT trust of trust (trust investment fund, the subject matter of which is trust product) and hedge fund (also called arbitrage fund, the subject matter of which is arbitrage space). Many of the above-mentioned fund forms are in western countries, but in China, there is only such a concept, and there is no entity (private placement is possible because it is not limited by policies and the investment target is flexible). 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. Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The difference between the two is whether to raise funds for the general public and whether the ownership of funds has been transferred. More than 50 people raise funds and transfer them to personal accounts, which is regarded as illegal fund-raising. Illegal fund-raising is a very serious economic crime that can be sentenced to death, such as Wu Ying in Zhejiang, Tang Wanxin in Delong and Madoff in the United States. At present, China's private placement is mainly divided into: private securities investment funds, also known as sunshine private placement (investing in stocks, such as asset management companies such as Chunxin, Wudang Assets and Xingshi), private real estate investment funds (currently few, such as Xinghao Investment), and private equity investment funds (namely PE, investing in the equity of unlisted companies, aiming at IPO, Such as CDH, Hony, KKR, Goldman Sachs, Carlyle, Han Hong), private venture capital funds (VC, such as Lenovo Investment, Softbank, 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, but not in unlisted company equity, real estate or venture enterprises, while private equity funds can.

In this section, three paths for the development of private equity funds in China are edited.

Split share structure reform

The reform of non-tradable shares provides conditions for the rise of private equity funds, and the reform of non-tradable shares is the established goal of the government. After the reform, the number of tradable shares in China stock market will be 3-4 times that before the reform. The acquisition between listed companies will also be much simpler than before full circulation. The pressure of hostile takeover will also force the management of existing listed companies to cooperate more closely with shareholders to avoid the passive situation of being acquired. In addition, after full circulation, in order to achieve the purpose of industrial expansion, mutual acquisition between listed companies will also become easier and more meaningful for improving economic efficiency. Usually, no matter what form of acquisition, listed companies will have a great impact on their financial structure and lead to changes in stock prices. This change will inevitably bring changes to the investment model of private equity funds. Some mergers and acquisitions of these private equity funds focus on this business, from speculative private equity funds to specialized partnership funds (M& fund) engaged in mergers and acquisitions of listed companies and even industrial mergers and acquisitions. This acquisition fund is one of the huge private equity funds in the financial markets of developed countries. Take the American Carlyle Group, which has gained a lot in China in recent years, as an example. The company's own funds are about 8 billion US dollars, and the investment-driven funds can reach 80 billion US dollars, which is more than the total of all private equity funds in China A-share market. With strong financial advantages, political advantages and well-known contacts in global capital, some M&A projects can basically be operated by surgery, that is, overall acquisition, and they can obtain an annual return rate of more than 30% without great efforts and be listed on overseas capital markets. In addition, CapitaLand, a very active real estate investor in the Mainland in recent years, has its parent company as a wholly-owned subsidiary of Guardian Land Group, a large real estate company listed on the Singapore Stock Exchange. These international investment institutions look at opportunities from the perspective of global finance and skillfully combine assets and arbitrage in transnational financial markets. With the rapid development of international private equity funds, the policy restrictions of private equity fund industry in China will be gradually relaxed. With the current size of China's securities market, private equity funds with about 300 million yuan of self-owned assets can explore in this direction, and drive investment of about 654.38+0 billion yuan through triple leverage ratio. In addition, we should further study the business model of international M&A funds and strive to find arbitrage opportunities in transnational financial markets.

Pure speculative private equity fund

Pure speculative private equity funds will turn into hedge funds. With the realization of full circulation of listed companies' shares, the number of listed companies' shares will increase several times, greatly increasing the liquidity of the market. Coupled with the improvement of the strictness of securities supervision, it is difficult for a single institutional investor to use the advantages of funds and information to obtain excess profits as before. In addition, because the concept of value investment is gradually recognized by people, the risk of pushing up the stock price by colluding to lock in the number of shares is increasing. Due to the increase in the number of shares held by a single institution and the disclosure obligation of tender offer, investors in a single stock present a market structure similar to monopoly competition or full competition, and it is difficult for a single institution to occupy an absolute advantage. Finally, after the stock market has a short-selling mechanism in the future, the stock price will fluctuate more and the direction will be more difficult to determine. Therefore, the profit model of simply locking in prices and pushing up prices needs to be rewritten. Due to the above three reasons, investment institutions only engaged in stock trading can only follow the guidance of efficient market theory and make appropriate speculation on the instantaneous deviation of prices. However, in the mature secondary market, the arbitrage opportunity time caused by irrational price fluctuations is very short. With the increase of the number of stocks and the variety of positions, it will become unsuitable for private fund managers to make market by individuals. Because fund managers are influenced by personal physical fitness and intelligence, it is difficult to quickly judge investment opportunities in instantaneous price fluctuations. Therefore, it is the best way for private equity funds to manage assets by compiling computer models and programs and embedding trading instructions into such programs. The difference is that when the trading order is embedded in the program, the fund manager must clearly know his expected rate of return and his risk-taking coefficient. Only when fund managers have a complete understanding of the risk preference of the funds they manage and make investment strategies on this basis can the function of market mechanism to optimize the allocation of resources be reflected. This method is one of the most common investment methods in western large financial markets. With the opening and development of China stock market, its application has gradually matured. For example, the recently listed Baosteel warrants can be traded with a computer-set model, and its ability to control trading risks is much higher than that of traders' (traders') instantaneous decisions. In fact, this kind of private equity fund will eventually evolve into a typical hedge fund. At present, there are some investment institutions called hedge funds in China, but their websites show that their products are still too narrow, which is inconsistent with the current market situation. Institutions engaged in hedge investment are not limited to asset scale, but the most important thing is to develop effective risk control and transfer technology.

Private equity fund with venture capital background

Private equity funds with venture capital background can be transformed into venture capital funds. At the end of last century, under the guidance of the strategy of rejuvenating the country through science and education, many venture capital institutions were established all over the country. Because the pure venture capital environment at that time was not very mature, and the stock market was hot, many venture capital companies turned part of their investment to stocks in the secondary market, and some later became institutional investors who mainly invested in the secondary market. However, with the gradual improvement of China's securities main board market and the successful demonstration effect of foreign venture capital companies in the field of venture capital, these institutions may be aroused to participate in venture capital again. At the same time, due to their experience in participating in the secondary market, the main business of listed companies in the secondary market is likely to be an important basis for their venture capital projects. However, with the reform of non-tradable shares and the improvement of the requirements of securities authorities for the operating performance of listed companies, listed companies must really consider that their M&A projects can add points to their operating performance, which is different from the acquisition for manufacturing purposes in the market in the past. Under this condition, listed companies, venture capital companies, entrepreneurs of invested projects and stock investors of listed companies may get a win-win situation. Although this model is suspected of insider trading for venture capital companies, it is feasible in view of the current domestic legal system and law enforcement space. The above investment models can be used as the development direction of some private equity funds with venture capital experience and background. In fact, the fast-growing small and medium-sized enterprises in China have always been the domain of venture capital institutions. According to Ernst & Young's statistics, in 2004, the amount of venture capital completed in China reached US$ 6,543.8 +0.27 billion, while in 2002, this figure was only US$ 4,654.38 +0.8 billion. Among them, foreign capital has become an important force in the development of venture capital in China. Comparatively speaking, foreign capital has more advantages in project selection and withdrawal mechanism. For example, Goldman Sachs invested in Mengniu and Carlyle Group invested in Ctrip. This kind of profit model must be paid attention to by private equity funds with venture capital experience and background in China. Generally, investors engaged in this kind of business should have assets of more than 50 million yuan. Cross-market arbitrage by formulating a reasonable asset portfolio.

Changes in the international and domestic situation

Changes in the international and domestic situation have opened up space for the development of private equity funds. In recent years, a remarkable phenomenon has appeared in the international capital market. First, private equity funds have developed rapidly and achieved remarkable results. Their model is increasingly recognized by some large institutional investors and has become the focus of the international financial market. According to the statistics of European Private Equity and Venture Capital Association, in 2003, the total private equity investment in Europe reached 29 1 billion euros, and the total financing reached 27 billion euros. According to PricewaterhouseCoopers World Investment Report, the proportion of private equity investment in GDP in North America, Europe and Asia in 2004 was 0.97%, 0.28% and 0.23% respectively. In the past five years, the total amount of private equity funds in the United States has doubled, reaching the current scale of about 700 billion US dollars. In addition, global hedge funds are growing rapidly. From 65438 to 0990, the global hedge fund assets are about $39 billion. By 2003, the scale of assets reached $650-700 billion, with an average annual growth rate of over 25%. In the past five years, the total assets of American pension funds were about $5 trillion, and the proportion of investment in hedge funds, private equity funds, real estate funds and derivative financial instruments rose from 2% to 5%. Well-known pension funds in California, Pennsylvania and General Electric all relaxed their investment restrictions on private equity funds, while many pension funds in Europe also increased their investment in private equity funds. In terms of venture capital, in 2003, the assets managed in Europe alone were about 654.38+0.8 trillion US dollars, distributed in 36 European countries, and the average venture capital assets in each country were about 50 billion US dollars, nearly 40 times that of China. It can be seen that China's venture capital has great development potential. According to the statistics of the World Bank, the income and expenditure gap of pension funds in China will reach 9 15 trillion yuan by 2000/0/2075. With the present investment system, it is impossible to cope with such a large expenditure. The only way is to enrich the account and improve the return on investment. One of the ways to improve the return on investment is to entrust some assets to private equity funds with excellent performance and integrity. According to the comparison of the performance of hedge funds and * * * mutual funds in the US market from1995 to 2000, the average return rate of the top 10 hedge fund is 53.6%, while the average return rate of the best * * mutual fund is 36%, the average return rate of the worst hedge fund is -7.7%, and the worst *. As a form of private equity fund and a public offering fund, hedge fund's income level is obviously higher than that of mutual fund. China private equity funds should be aware of these new trends in the international private equity circle, actively adjust and adapt, choose their own areas of expertise and explore their own profit model.