Refers to funds raised by private individuals or directly from specific groups. It 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 raise funds from non-public multi-subjects to set up investment funds and conduct securities funds.

Early private equity funds were simple. Everyone raised funds and found a recognized capable person to manage it, which is very similar to the current folk stock trading and opening a shop for others.

With more and more people doing this, the scale is getting bigger and bigger, and everyone begins to explore various forms, such as registering a company to protect the interests of each participant through company accounts and company laws.

Early funds only raised money, did things, made money and divided money, no matter what form. More and more people are doing this, and the scale is getting bigger and bigger. Contradictions and frauds are inevitable in cooperation. In our country, the government stepped forward, drew lessons from the advanced experience of the west, stipulated the operation mode and supervision mode of fund companies and fund products, and gave birth to the predecessor of Public Offering of Fund-fund.

However, as the fund companies operate according to the rules and regulations, they gradually begin to break away from the original meaning of the fund, and the form is greater than the content. Public Offering of Fund is no longer "raising money to make money together", but has become a financial tool. Specifically, it has become an economy with extremely high registration cost, raising customers' funds, investing in the securities market and earning management fees.

Those who invest in industrial projects become trust companies.

At the beginning, people's simple demand for "raising money to make money" could not be realized by means of funds. The registered capital of hundreds of millions of yuan, the value of tens of millions of licenses and the incomprehensible star fund managers have become obstacles to "raising money and making money". The customer and the housekeeper who looks after the assets are no longer the same interests. In this case, private equity fund appeared, and in order to distinguish it from previous funds, this kind of private equity fund is called private equity fund. Compared with private equity funds, the former fund form is called Public Offering of Fund.