Definition of private placement
Private placement is a private investment fund, referred to as private placement fund. Private equity funds, which originated in the United States, refer to investment funds raised from qualified investors in the form of non-public offering to invest in stocks, equities, bonds, futures, options, fund shares and other investment targets agreed in investment contracts.
Conditions for purchasing private equity funds
1, which requires corresponding risk identification ability and risk tolerance;
2. Require that the investment amount of a single private equity fund is higher than or equal to 6,543,800 yuan;
3. Require the net assets of unit investors to be higher than or equal to 6.5438+million yuan, the financial assets of individual investors to be higher than or equal to 3 million yuan or the average annual income of individuals in the last three years to be higher than or equal to 500,000 yuan. The financial assets of individual investors include the following: bank deposits, stocks, bonds, fund shares, asset management plans, bank wealth management products, trust plans, insurance products, futures rights and interests, etc.
The Difference between Private Equity Fund and Public Offering of Fund
1. Different fundraising targets: the fundraising targets of private equity funds are specific investors; The target of public offering funds is the public.
2. Different investment thresholds: private equity funds have thresholds and must reach a certain amount before they can invest; Public Offering of Fund has a low threshold and a small investment.
3. Different fundraising methods: the fundraising method of private equity funds is private placement; Public Offering of Fund's way of raising funds is public offering.
4. Different restrictions on investment methods: private equity funds agree on investment projects according to the contents of the contract; There are strict regulations on the types of investment in Public Offering of Fund.
5. Different investment objectives; The goal of private equity funds is to put interests first and pursue absolute returns. Public Offering of Fund's goal is based on exceeding performance.
6. Different performance returns: Private equity funds generally collect performance rewards from investors according to a reasonable income ratio; Public Offering of Fund collects management fees, but not investors' remuneration.
7. Different risk control: Private equity funds generally set a certain stop loss line; Public Offering of Fund has no clear stop loss line.
8. Different liquidity: Private equity funds have a prescribed closure period, and they can only be redeemed after the closure period; Public Offering of Fund can apply for redemption every trading day, which is highly liquid.