The difference between them is that the duration includes the investment period, which is longer than the investment period. You can quit almost at any time. Duration refers to the operation cycle of private equity funds, which mainly includes investment period, withdrawal period and extension period. If the duration of the fund is 8 years and is set to "5+2+ 1", it is a 5-year investment period, during which the fund can invest; During the 2-year withdrawal period, investment projects were withdrawn one after another; The extension period refers to the disposal of projects that have not been withdrawn during the withdrawal period. At the end of the duration, the fund is liquidated. When the investment and principal can be recovered depends on the specific design of the product. The investment period, withdrawal period and extension period may not be clear, but the term of the partnership agreement must be clear.

The meaning of private equity fund

Private equity fund is a kind of collective investment that does not publicize publicly and privately raises funds from specific investors. Generally speaking, private equity funds are relative to securities investment funds that are supervised by the competent department of China government and issue beneficiary certificates to unspecified investors. Among them, the biggest difference between Public Offering of Fund and private equity funds is the different ways to raise funds, one is public offering and the other is private offering. Under normal circumstances, the investment of private equity funds is basically illiquid; Private equity fund is called private equity, which means that investors cannot be recruited publicly, nor can they be sold in the open market, let alone sell stocks online. Under normal circumstances, investors in private equity funds can be angel investors or VC; It can be an individual or an institutional investor. The carriers of private equity funds generally include stocks, bonds and convertible bonds. The operation mode of private equity fund is equity investment, that is, through capital increase and share expansion or share transfer, the shares of non-listed companies are obtained, and profits are made through the transfer of share appreciation.

Characteristics of equity investment

1. The return on equity investment is very rich. Unlike creditor's rights investment, which earns a certain percentage of interest income from the invested capital, equity investment obtains dividends from the company's income according to the investment proportion, and once the invested company is successfully listed, the income of private equity investment funds may be several times or dozens of times.

2. Equity investment is usually accompanied by high risks. Equity investment usually takes several years of investment cycle, and because it is invested in developing or growing enterprises, the development of the invested enterprises themselves is also very risky. If the invested enterprise ends in bankruptcy, then the private equity fund may lose all its money.

3. Equity investment can provide all-round value-added services. Because private equity investment not only injects capital into the target enterprise, but also injects advanced management experience and various value-added services, which is also the key factor for equity investment to attract enterprises.