First, the difference between private equity funds and trusts.
Different concepts
Private equity funds may not raise funds on public platforms when raising funds from specific targets. Trust is a property management system in which the property owner transfers or sets the property to the manager, and the manager manages or disposes of the property for the benefit or purpose of a certain person. The minimum subscription amount of Sunshine Private Equity Fund with different investment thresholds is 6.5438+0 million, and the minimum subscription amount of trust is usually 6.5438+0 million, but some of them are lower than 6.5438+0 million, such as 200,000 and 500,000. The risk-taking ability is different, and the risk of trust is less than that of private equity fund. Generally speaking, trust funds have no amplification function, while private equity funds have unlimited amplification function. Different from private equity funds, trust companies have a certain ability to pay. A trust company consists of a fixed trust fund pool with a certain scale. According to the law, the beneficiary must compensate with his own funds for the damage caused by his failure to perform the obligations of the trustee.
Second, different modes of operation.
The only intersection between trust and private equity fund is to pool the investors' funds, and then distribute the investment income back to the investors themselves in proportion through investment operation. In addition, trust can also play the role of inheriting family property, providing living funds for the younger generation and avoiding taxes in some cases. In addition to the most common investment methods, private equity funds also include private equity investment, which generally refers to funds engaged in equity investment of unlisted companies. The funds of different private equity funds in investment fields are mainly used for A-shares, bonds, futures, bank deposits and other varieties allowed by the CSRC, while the investment fields of trusts are generally basic industries, real estate, industrial and commercial enterprises and so on. Portfolio investment trusts can also invest in low-risk financial products.
Third, the legal relationship is different.
Private equity funds clarify the legal status, rights and obligations between the parties through the fund's articles of association or fund contracts to ensure that every investor is treated equally. Trust is a kind of legal system and legal arrangement, which refers to the act that the principal entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the principal. It protects the independence and security of the trust property to the maximum extent legally, has certain stability and long-term, and is more suitable for the long-term planning of property transfer and property management. Once the trust company goes bankrupt, the trust property can be handed over to other trust companies for continued management.