Because private placement is to issue shares to specific investors in a private way, listed companies often raise funds through private placement in order to acquire assets or increase liquidity. The price of private placement is often lower than the market price, the lock-up period of equity is about one year, and then it can be circulated, which enables investment institutions to participate in high-growth companies or industries in a concise and low-cost way and easily obtain profits brought by the rapid development of companies or industries.

Private investment funds (hereinafter referred to as fixed-income funds) refer to funds that mainly participate in the private placement of listed companies, that is, investment funds that mainly invest in the non-public offering of listed companies.