Two: the legal relationship is different.

Private equity fund embodies the relationship that investors entrust funds to invest on their behalf, while fund trust embodies the relationship of entrustment-investment. Private equity funds do not transfer the ownership of entrusted property. When the investor or the trustee is insolvent, his creditors can claim the right to entrust the property, while in the fund trust relationship, the trust property is transferred, but the trustee's creditors cannot directly claim the right to entrust the property.

Three: the contractual relationship is different.

Private equity funds clarify the legal status, rights and obligations between the parties through fund contracts or fund articles of association, and treat all investors equally. While fund trusts contact the relationship between the parties through contracts, they need to sign contracts with each client to clarify the rights and obligations of both parties, such as the entrustment period, related expenses, profit and loss responsibilities, etc.

Four: the business supervision departments are different.

In the future, private equity funds will be supervised by the CSRC or relevant industrial investment departments according to their business, and fund trust business will be supervised by the People's Bank of China. Therefore, Zhu believes that it is very necessary to legislate for private equity funds.

The main types of trust investment are loan business, equity investment business, equity transfer business, property trust business and nested business. Risk control measures are generally mortgage and equity pledge. So far, domestic trust products are all rigid redemption.