Private equity fund refers to a securities investment fund that raises funds from specific investors in a non-public way and invests in specific objects. Compared with Public Offering of Fund, private equity funds can't be sold and promoted publicly, and the investment amount is high, so there are often strict restrictions on the qualifications and number of investors.
Public offering of funds must abide by the laws and regulations of funds, accept the strict supervision of the regulatory authorities, and disclose information regularly. Private equity funds have greater flexibility in operation and fewer restrictions and constraints. It can not only invest in derivative financial products, but also carry out short selling, exchange rate and commodity futures investment speculation. The investment risk of private equity funds is relatively high, mainly targeting the wealthy class with strong risk tolerance.
The main differences between the two are:
There are different ways to raise funds.
Public Offering of Fund raised funds from public investors in an open form, so it was called Public Offering of Fund; Private equity funds can only be raised for specific people and cannot be publicized, so they are called private equity funds.
The purchase threshold is different.
Public offering funds are open to ordinary investors, so the investment threshold is relatively low. We can buy Public Offering of Fund for 65,438+0 yuan, 65,438+00 yuan and 65,438+000 yuan. Because private equity funds are aimed at special institutions or people, the threshold of private equity funds is usually relatively high, generally speaking, 654.38+00,000 yuan starts.
The product scale is different.
Because Public Offering of Fund has a wide range of object-oriented, it usually reaches a relatively large scale, hundreds of millions or even hundreds of millions; Private equity funds are usually small, tens of millions, hundreds of millions.
Investment restrictions are different.
Public Offering of Fund has requirements for investment positions, for example, the stock position of stock funds cannot be less than 80%; Private equity funds are more flexible and can allocate investment positions at will.
The charging methods are different.
Public Offering of Fund collects fees by collecting management fees, because the management scale in Public Offering of Fund is usually relatively large, so the management fees charged by Public Offering of Fund are relatively low; Private equity funds mainly collect fees through floating management fees, such as taking 20% of the profits of managed funds as commissions, so the management fees charged by private equity funds are usually relatively high.
Information disclosure requirements are different.
Public Offering of Fund has strict requirements on information disclosure, including quarterly, semi-annual and annual reports. However, there is no requirement for information disclosure of private equity funds, and private equity funds have strong confidentiality.
The investment scope is different.
Public Offering of Fund can usually only invest in ordinary investment targets such as stocks, bonds and currencies; Private equity funds have many investment directions to choose from, such as investment in real estate, investment projects, investment in company equity and so on.