Private equity funds are mainly divided into four types: private equity funds, venture capital funds, private equity funds and other types of private equity funds.
1. Private placement securities investment fund is a kind of securities investment fund that is supervised by the competent department of our government and publicly issues income certificates to unspecified investors. It refers to a fund established by raising funds from a few institutional investors and wealthy individual investors in a private way, and its sales and redemption are carried out by the fund manager through private consultation with investors. In this sense, private equity investment funds can also be called funds raised from specific targets.
2. Venture capital fund is a fund to support "new ventures", which is operated by people with professional knowledge and experience in science and technology or finance, and specializes in investing in companies with development potential and rapid growth. Venture capital fund is an investment activity that provides equity capital for "unlisted enterprises", but it does not aim at operating products. Venture capital is a high-risk and high-yield industry that mainly engages in capital management in the form of private equity, and pursues long-term capital appreciation by cultivating and coaching enterprises to start or re-start. Venture capital is a long-term investment with poor liquidity, and it usually takes 5- 10 years to get a significant return on investment.
3. Private equity funds are funds engaged in private equity (non-listed company equity) investment. It mainly includes investing in the equity of non-listed companies or the non-publicly traded equity of listed companies. The pursuit is not equity income, but the profit from selling equity through equity transfer paths such as listing, management buyout and merger.
4. Other types of private equity funds refer to funds that invest in areas other than securities and their derivatives and equity.