PE is also a private equity investment. From the perspective of investment mode, it refers to the equity investment in private enterprises, that is, unlisted enterprises. In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback, the shares are sold for profit.

Investment bank is a kind of financial institution corresponding to commercial bank. Is a non-bank financial institution mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses. It is the main financial intermediary in the capital market.

2, the content is different

PE is the buyer and investment bank is the seller. Fund companies or asset management companies have clear requirements for registered capital and classification. Public Offering of Fund is a public offering to the market, similar to the stock and securities investment funds of major institutions. Generally, mutual funds and hedge funds, such as Huaxia and Guotai, invest in listed companies or bonds.

Most private equity funds are not publicly offered, and the registered capital requirements are low. Generally speaking, the investment category is not necessarily to invest in listed companies, but also to invest in some unlisted enterprises or make acquisitions. In Public Offering of Fund, the main indicator to measure returns is portfolio return rate, while private placement is exit or IPO. Investment banks mainly provide financing and acquisition services for enterprises. They are all engaged in seller's business, such as helping companies sponsor listing, underwriting bonds, and consulting on mergers and acquisitions.

3. Different in nature

Investment banks are intermediaries, serving enterprises and PE. PE is an investor, not an intermediary, which is the biggest difference from investment banks. PE generally invests in mature enterprises, and its profit model has been relatively stable, so it can quickly quit. PE does more PRE-IPO business.