1. Compliance registration: Private equity funds must meet the registration requirements stipulated by the local financial regulatory authorities and report their operation to the regulatory authorities on a regular basis. Private equity funds that fail to register in compliance with the law or disclose information as required may constitute illegal fund-raising.
2. Investors and qualification requirements: Private equity funds can usually only provide services for specific investors, such as qualified investors or institutions with specific qualifications. Private equity funds may violate illegal fund-raising laws and regulations by raising funds from unqualified individuals or institutions.
3. Investment products and commitments: Private equity funds need to be clear about investment strategies and investment risks. And provide accurate investment information. If private equity funds fabricate income, conceal risks or make false promises to attract investors, they may be identified as illegal fund-raising.
4. Fund raising and use: Private equity funds should follow the principles of investor risk education, reasonable fund raising and rational use of funds. If private equity funds violate the rules in the process of fund raising and operation, such as violating the agreement on the purpose of fund raising or misappropriating funds, it may constitute illegal fund raising.
5. Investor protection: Private equity funds need to establish a sound investor protection system, including information disclosure, risk warning and risk disclosure. Private equity funds that violate investor protection regulations and damage the legitimate rights and interests of investors may also be identified as illegal fund-raising.
It should be emphasized that the specific criteria for identifying illegal fund-raising may be different due to different regions, countries and laws and regulations. It is suggested that professional legal or financial professionals should be consulted when problems related to private equity funds are involved, so as to obtain accurate suggestions and explanations under specific circumstances.