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How to accurately define private equity fund
The main characteristics of private equity funds are as follows.

Ways of raising funds: Private equity funds mainly raise funds for specific targets, and the number of people is limited.

Target: Private equity funds generally have certain thresholds for investors, such as the amount of funds and risk tolerance.

Information disclosure: Unlike Public Offering of Fund, private equity funds need to disclose their investment portfolios regularly, which makes them more concealed and flexible, but the risks borne by investors also increase accordingly.

Private equity funds are basically divided into two types, one is contractual collective investment funds that sign contracts to entrust investment, and the other is corporate collective investment funds that invest in joint-stock companies. Private equity funds belong to contractual collective investment.

The main difference between private equity funds and general private equity funds is that the target of raising funds is wider, mainly considering the amount of funds, followed by private equity funds participating in company decision-making, and finally private equity funds belong to medium and long-term investment. Compared with the investment direction of general private equity funds, the profit of private equity funds depends on the market prospect of an industry.