1, the proposed object is different. The target of public offering funds is the general public, that is, investors who are not specific to society. The target of private equity fund is a few specific investors, including institutions and individuals.
2. There are different ways to raise funds. Public Offering of Fund raises funds through public offering, while private equity funds raise funds through non-public offering, which is the main difference between private equity funds and Public Offering of Fund.
3. Information disclosure requirements are different. Public Offering of Fund has very strict requirements on information disclosure, such as its investment objectives and portfolio. Private equity funds have low requirements for information disclosure and strong confidentiality.
4. Different investment restrictions. Public Offering of Fund has strict restrictions on investment types, investment proportion and matching between investment and fund types, while the investment restrictions of private equity funds are completely stipulated in the agreement.
5. Different performance rewards. Public Offering of Fund does not extract performance compensation, but only collects management fees. Private equity funds, on the other hand, charge performance compensation and generally do not charge management fees. For Public Offering of Fund, performance is only the honor when ranking, while for private equity funds, performance is the basis of remuneration.
6. Apart from some basic institutional differences, private equity funds and Public Offering of Fund are quite different in investment concept, mechanism and risk taking.
Advantages and disadvantages of public offering
1) The public offering is aimed at mass investors, and the amount of funds raised is large, which is suitable for issuing securities in large quantities.
2) The public offering has a wide range of investors, which can avoid the securities being maliciously hoarded or the future development being manipulated by a few people.
3) In the public offering of securities, you can apply for listing, which can enhance the liquidity of securities and improve the social reputation of issuers.
Disadvantages: long registration approval time, high issuance cost and complicated issuance process.