2. The fund-raising targets are different. The object of illegal fund-raising is the unspecified public, and there is no restriction on the qualifications of investors. While private equity funds raise funds from specific investors, there are strict restrictions on the number and qualifications of investors.
3. The distribution of benefits is different. Illegal fund-raising will generally "promise to repay the principal and interest to investors in the form of money, kind and other income within a certain period of time", which belongs to the behavior that investors get fixed principal and interest and fund managers get residual profits. In private equity funds, investors get the actual investment income.
4. The impact is different. The influence of private equity funds on the financial system can be monitored, and its influence scope can also be manipulated due to the limitation of its number. Illegal fund-raising is to raise funds from an unspecified public, and its use and operation are opaque, irregular and even fraudulent. Therefore, its credit risk is very high, which can easily lead to a crisis of trust and affect the security of the entire financial system.
Legal basis: Article 14 of the Interim Measures for the Supervision and Administration of Private Equity Funds, private equity fund managers and private equity fund sales organizations shall not raise funds from units and individuals other than qualified investors, and shall not publicize and promote them to unspecified objects through public media such as newspapers, radio, television and the Internet, or lectures, reports, analysis meetings and notices, leaflets, short messages, WeChat, blogs and emails.