Private investment funds refer to investment funds raised from qualified investors in the form of non-public offering, which are invested in stocks, equity, bonds, futures, options, fund shares and other investment targets (such as works of art, wine, etc.). ) stipulated in the investment contract, referred to as private equity fund.

P2P, also known as Peer-to-Peer peer-to-peer lending, is a private micro-lending model, which gathers small funds and lends them to people who need them. It belongs to a product of Internet Finance (ITFIN). It belongs to private microfinance, an online credit platform built with the help of Internet and mobile Internet technology, and related financial management behaviors and services.

2. Different ways

P2P peer-to-peer lending platform designs the loan demand as a wealth management product and sells it to the lender, or collects the funds first and then finds the borrower, so that the lender's funds enter the intermediate account of the platform, thus generating a fund pool.

With the realization of full circulation of shares of listed companies, the number of shares of listed companies will increase several times, greatly increasing the liquidity of the market. Coupled with the improvement of the strictness of securities supervision, it is difficult for a single institutional investor to use the advantages of funds and information to obtain excess profits as before.

3. Different risks

Non-public offering of shares has poor liquidity and cannot be publicly transferred and sold in the market; Due to the non-public way to raise funds, the entry threshold is high, and the target is generally a few specific investors. In this way, if investors withdraw their funds or have other major changes, the risk is even greater.

At present, the pricing model of P2P peer-to-peer lending platform in China is still being explored, including risk pricing, cost plus and bidding pricing. In practice, in order to enhance its popularity, P2P peer-to-peer lending platforms often charge borrowers, charge investors little or no fees, and even provide investors with various subsidies.

Baidu Encyclopedia -p2p

Baidu encyclopedia-private placement