private placement is relative to public offering. At present, all funds in our country are raised through public offering, which is called Public Offering of Fund. If a fund does not go through public offering, but raises funds for specific targets in private, it is called a private equity fund.

there are two ways to raise funds, one is through equity, and each fund holder is a shareholder of the fund, and the manager is also one of the shareholders. The other is contractual, and the relationship between the holder and the manager is contractual, not equity. At present, Public Offering of Fund is all contractual, but at present, China law only allows Public Offering of Fund to raise funds by contract. Therefore, if you want to set up a private equity fund, you must adopt the equity method, so that there is no legal obstacle.

private equity investment is highly targeted and the public information is extremely limited. For more information, please go to the private equity channel of "Good Buy Fund Network".