Private equity funds generally refer to funds engaged in private equity (non-listed company equity) investment. 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 from a specific target, it is called a private equity fund.

Private equity funds that invest in the securities market are called private equity funds, and only those that invest in the equity of unlisted companies can be called PE- private equity funds. Note that one is stock and the other is equity.

Similarities and differences between the two:

The private equity fund industry originated from venture capital. In the early stage of development, small and medium-sized enterprises mainly started businesses and expanded financing, so venture capital became synonymous with private equity investment for a long time.

Since 1980, the popularity of large M&A funds has given private equity funds a new meaning, and the main difference between them is in the investment field. The investment scope of venture capital fund is limited to the financing of small and medium-sized high-tech companies in the initial stage and expansion stage. Private equity funds mainly invest in mature enterprises that have formed a certain scale and generated stable cash flow, which is the biggest difference between them and venture capital funds.

To sum up, private equity funds originated from venture capital, but the investment fields are different.