Non-publicity, that is, unlike Public Offering of Fund, private equity funds do not openly seek investors, but sell to specific qualified investors in the form of private consultation. It is difficult for investors to know the information of private equity products through media and other channels. Because for private placement, any public offering is illegal.

Advantages and characteristics of private equity funds II:

The process of raising funds for private placement is the process of raising funds from specific investors. Private equity funds must meet three requirements in the process of raising funds: first, the number of investors must meet the requirements of a limited majority, that is, the number of investors is generally dozens to 200; Secondly, the fund unit must guarantee the requirement of the same price at the same time, that is, there must be no different prices for different investors in the same sales process; Finally, the fund offering process also announced that the fund began to raise funds.

Advantages and characteristics of private equity funds 3:

Big investment. Private fund is different from public fund. Due to the limited amount of funds needed for fund operation and the limited number of investors, private equity funds have higher requirements for each investor's subscription starting point. In China, the subscription threshold is 6.5438+0 million, while the minimum investment quota of American hedge funds is as high as 3 million dollars.

Advantages and characteristics of private equity funds 4:

Private equity funds generally have a clear closure period. During the closed period, investors may not withdraw the investment principal unless the fund holders' meeting approves the dissolution of the fund, but the fund manager may recover the principal through private transfer of fund shares.

Advantages and characteristics of private equity funds 5:

Private equity funds are generally not listed. Although investors can get a return through fund investment, they can't get a return through the listing spread.

Advantages and characteristics of private equity funds 6:

The confidentiality of private equity funds is different from that of public offering. Private equity funds have strict supervision in registration, declaration and information disclosure. , and generally adopt black-box operation, investment strategy is highly confidential, private fund managers have great freedom of operation, and do not disclose investment portfolios and methods, so it is generally difficult for the outside world to obtain systematic information of private funds.

Advantages and characteristics of private equity funds 7:

Private equity funds generally operate with financial leverage, and the leverage of fund operation can reach several times or even dozens of times. Under special circumstances, the leverage ratio will be higher. The use of private equity funds can expand the scale of funds, avoid the constraints of insufficient funds and obtain higher profits.

Advantages and characteristics of private equity funds 8:

The structure of private equity funds is relatively simple, and the partners are generally responsible for the daily management and investment decisions of the funds. In addition, the salary incentive mechanism of private fund managers is relatively perfect, and besides a certain proportion of fixed management fees, they can also obtain a certain proportion of investment profits.