1, private order

Unlike Public Offering of Fund, the investment threshold of private equity funds is higher, and only a few specific investors raise funds. Therefore, the investment objectives of private equity funds are more targeted, which can provide tailor-made investment service products for customers, meet their special investment requirements, and realize diversification and differentiation of investment products.

2, the pursuit of absolute return

Compared with Public Offering of Fund, the fixed management fees of private equity funds are less, and they mainly rely on the extraction of performance rewards to survive, while the excess performance can only be extracted after each net value reaches a new high. Therefore, the interests of private fund managers and investors are the same. Investors make money, and private placement can make money. Therefore, the incentive mechanism of private equity funds is stronger, and absolute positive returns should be pursued.

3, flexible operation:

Compared with the scale of one billion publicly raised funds, smaller private equity funds are more flexible in investment operation, can keep up with the market in time, fast forward and fast out according to the changing trend of the market, bull market can get all the benefits from Man Cang, and bear market can use short positions to avoid systemic risks, so there are many investment strategies. When the stock market falls, Public Offering of Fund, a large-scale company, often finds it difficult to steer because of its high position, and it will cost a heavy price to change its investment style, so its performance often fluctuates greatly.

4. Risk * * *

Under normal circumstances, fund managers of foreign hedge funds generally hold 3%-5% of the fund shares they operate. At present, in order to restrain Sunshine Private Equity Company in China, private equity managers also need to take out their own or related funds to buy their own trust products as investment consultants, thus forming a bundle of interests, which to some extent reflects the characteristics of * * * enjoying benefits and * * taking risks. Public Offering of Fund has no such request.