Private placement is relative to public offering. At present, all funds in China are raised through public offering, which is called fund public offering. If a fund does not go through public offering, but privately raises funds for a specific target, it is called a private equity fund.

There are two ways to raise funds, one is through equity, each fund holder is a shareholder of the fund, and the manager is also one of the shareholders. The other is contractual, and the relationship between the holder and the manager is contractual, not equity. At present, public offering funds are all contractual, but at present, China's laws only allow public offering funds to raise funds by contract. Therefore, if you want to set up a private equity fund, you must adopt the way of equity, so there is no legal obstacle.

Private equity investment is highly targeted and the public information is extremely limited. For more information, please go to the private placement channel of "Good Buy Fund Network".