Public offering fund (), a public offering fund is a securities investment fund that is supervised by the competent government department and publicly issues beneficiary certificates to unspecified investors. Under the strict supervision of the law, these funds have industry norms such as information disclosure, profit distribution and operation restrictions. For example, at present, the closed-end funds in the domestic securities market belong to Public Offering of Fund. Public Offering of Fund and private equity funds have their own merits, and their healthy development is of vital significance to the development of financial markets.

Private equity fund is a business that everyone pays more attention to, which can reflect the level of a company to some extent.

Let's discuss the difference between private equity funds and Public Offering of Fund.

differentiate

Different goals. The target of public offering funds is the general public, that is, investors who are not specific to society. The target of private equity fund is a few specific investors, including institutions and individuals.

There are different ways to raise funds. Public Offering of Fund raises funds through public offering, while private equity funds raise funds through non-public offering, which is the main difference between private equity funds and Public Offering of Fund.

Information disclosure requirements are different. Public Offering of Fund has very strict requirements on information disclosure, such as its investment objectives and portfolio. Private equity funds have low requirements for information disclosure and strong confidentiality.

Investment restrictions are different. Public Offering of Fund has strict restrictions on the types of investment, the proportion of investment and the matching between investment and fund types, while the investment restrictions of private equity funds are completely stipulated in the agreement.

Different performance awards. Public Offering of Fund does not extract performance compensation, but only collects management fees. Private equity funds, on the other hand, charge performance compensation and generally do not charge management fees. For Public Offering of Fund, performance is only the honor when ranking, while for private equity funds, performance is the basis of remuneration.

Apart from some basic institutional differences, private equity funds and Public Offering of Fund are quite different in investment concept, mechanism and risk taking.

First of all, the investment objectives are different. Public Offering of Fund's investment goal is to surpass the performance comparison benchmark and pursue the ranking in the same industry. The goal of private equity fund is to pursue absolute return and excess return. But at the same time, private investors have to take higher risks.

Secondly, their performance incentive mechanisms are different. The income from the fund company's public offering is the daily fund management fee, which has nothing to do with the profit and loss of the fund. The income of private placement is mainly income sharing. Only when the net value of private placement products is positive can management fees be withdrawn. If the fund they manage is losing money, then they will have no income. Generally, the performance reward extracted by private equity funds based on performance profit is 20%.

In addition, Public Offering of Fund has strict procedures and strict policy restrictions on investment, including restrictions on shareholding ratio and investment ratio. When investing in Public Offering of Fund, the operation of public offering is strictly regulated because it involves the interests of investors. In addition to not manipulating the market in violation of the provisions of the Securities Law, the investment behavior of private equity funds is flexible in terms of investment methods, shareholding ratio and positions.

The biggest difference between private placement and public offering is the incentive mechanism, profit model, supervision and scale. The specific investment methods, especially the stock selection criteria, are not different under the same style.

As far as Public Offering of Fund is concerned, its investment style was determined at the beginning of its establishment. For example, some specialize in small-cap stocks, some focus on large-cap blue chips, some follow growth investment strategies, and some tap value-based opportunities with rich varieties, which can provide corresponding products for investors with different risk tolerance.

For private equity funds, most of them are small in scale, and there are few domestic private equity funds with 654.38 billion yuan. They pursue the absolute return on investment, not the scale to earn management fees.