Trust is the entrustment of credit, and trust business is a legal act based on credit, which generally involves three parties, namely, the trustor who has invested in credit, the trusted trustee and the beneficiary who benefits from others.

Private placement, also known as private placement fund, refers to a fund set up to raise funds for a few investors in a non-public way, and its sales and redemption are conducted by the fund manager and investors through private consultation. Hedge funds usually operate as private equity funds.

Third, the difference between trust products and private placement products.

In the past, there was a clear distinction between trust products and private placement products, but with the rise of private placement in limited partnership, more and more people confused trust products with private placement products. So share the differences between trust and private placement and some effective ways to distinguish them.

The most obvious difference-product manager

The manager of trust products is a trust company, and the manager of private placement products is a private investment company, which is the most essential difference between the two types of products. Of course, private placement products sometimes appear in various forms. For example, products such as Sunshine Private Equity, which were familiar to everyone before, were all raised through trust platforms, so some products had the word trust in their names, but the managers were private investment companies. In addition, there are some limited partnership private placements, which may appear in the form of brokerage asset management products or single fund trusts, but brokers and trust companies only play a channel role here, and product managers are still private investment companies.

Therefore, no matter what name or form private placement products appear, as long as you find the manager column and see if they are trust companies or private investors, it is easy to distinguish them.

The most confusing place-the direction of product investment

Collective trust products are basically investment projects in the real economy, and this design feature has not changed for many years. However, in recent years, some limited partnerships have appeared in the market to invest in real economic projects. From the perspective of product investment, private placement products are easily confused with trust products, but they are obviously different from trust products.