Government, financial institutions, industrial and commercial enterprises, etc. When issuing securities, different investors can be selected as the issuing targets, so securities issuance can be divided into two forms: public offering and private offering.
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Advantages of private equity funds:
1. Private equity funds are generally closed-end partnership funds and are not listed and circulated. During the closed period of the fund, the partnership investors can't withdraw the funds at will, and the closed period is generally 5 years to 10 years, so the operation period is stable and there is no pressure to redeem the funds.
2. Compared with the strict information disclosure requirements of public funds, the requirements of private funds in this respect are much lower and the government supervision is relatively loose, so the investment of private funds is more hidden and professional, and the return on income is usually higher.
3. The success of fund operation is closely related to the fund manager's own interests, so the fund manager has a strong professional consciousness and can attract specific investors with his unique and effective operation concept. The cooperation between the two sides is based on a kind of trust and contract, so moral hazard rarely occurs.
4. Investment targets are more targeted, and investment service products can be customized for customers to meet their special investment requirements. For example, Soros's Quantum Fund not only invests in the global stock market, but also invests heavily in foreign exchange and futures, creating a high rate of return.
5. Simple organizational structure, flexible operating mechanism and high freedom in daily management and investment decision-making. Compared with the complicated bureaucracy, private equity funds have obvious competitive advantages at the critical moment when opportunities are fleeting.
Baidu encyclopedia-private equity