Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which refers to the investment in any kind of equity assets that cannot be traded freely in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value.

20 14, 12, 3 1, in the insurance industry, with the pace of 20 15, the use of insurance funds has landed one after another. On the eve of New Year's Day, the CIRC approved insurance funds to set up private equity funds to support the development of small and medium-sized enterprises.

Funds can be divided into public offering and private offering according to whether they raise funds for the public, and securities investment funds (stocks), futures investment funds (futures contracts), monetary investment funds (foreign exchange), gold investment funds (gold) and FOF funds (fund investment funds, PE and VC funds) according to the main investment targets. REITs real estate investment trust (real estate investment fund, the subject matter of which is real estate), TOT trust of trust (trust investment fund, the subject matter of which is trust product) and hedge fund (also called arbitrage fund, the subject matter of which is arbitrage space). Many of the above-mentioned fund forms are in western countries, but in China, there is only such a concept, and there is no entity (private placement is possible because it is not limited by policies and the investment target is flexible).

The so-called funds in China should be called securities investment funds accurately, such as Dacheng, Huaxia, Jiashi and Bank of Communications Schroeder. These Public Offering of Fund are strictly supervised by the CSRC, and their investment direction and proportion are strictly restricted. Most of them manage tens of billions of dollars.

Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The difference between the two is whether to raise funds for the general public and whether the ownership of funds has been transferred. More than 50 people raise funds and transfer them to personal accounts, which is regarded as illegal fund-raising. Illegal fund-raising is a very serious economic crime that can be sentenced to death, such as Wu Ying in Zhejiang, Tang Wanxin in Delong and Madoff in the United States.

At present, China's private placements mainly include: private securities investment funds, which are also called sunshine private placements after Sunshine (investing in stocks, such as asset management companies such as Stock Win Asset Management Company, Chunxin Asset Management Company, Wudang Asset Management Company and Xingshi Asset Management Company), private real estate investment funds (few at present, such as Jincheng Capital and Xinghao Investment) and private equity investment funds (that is, PE, which invests in the equity of unlisted companies for the purpose of IPO, such as Ding.

Dacheng, Jiashi, Huaxia and other fund companies in Public Offering of Fund are all securities investment funds, and they can only invest in stocks or bonds, but not in unlisted company equity, real estate or venture enterprises, while private equity funds can.