Private equity funds are defined as public offering and private placement, or public offering and private placement, according to the different ways of issuing securities and whether they issue securities to an unspecified public. Features: First, private equity fund is a special kind of investment fund, mainly compared with public fund; Second, private equity funds generally only raise funds in "small circles" (only for a specific few investors); Thirdly, the operation process of the sale and redemption of private equity funds has the characteristics of private consultation and dependence on private trust. Fourth, the investment starting point of private equity funds is usually high, and natural persons, legal persons and other organizations generally require property of a specific scale; Fifth, private equity funds are generally not allowed to use public media for advertising, that is, they are not allowed to openly attract and attract investors; Sixth, fund sponsors and fund managers of private equity funds usually invest with their own funds, thus forming a mechanism of interest bundling, risk sharing and income sharing; Seventh, the regulatory environment of private equity funds is relatively loose, that is, the government usually does not strictly supervise; Eighth, the information disclosure requirements of private equity funds are not strict; Ninth, private equity funds have high confidentiality; Tenth, private equity funds respond quickly and have very flexible and free operating space; Eleventh, the return on investment of private equity funds is relatively high (that is, the probability of high returns is relatively high); The difference with Public Offering of Fund is that 1) has different fundraising targets. 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) Different financing methods. 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) Different information disclosure requirements. 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 the types of investment, the proportion of investment and the 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. Features: 1. Products are more targeted. Since private equity funds are raised from a few specific targets, their investment objectives are more targeted, and it is more likely to tailor investment service products for customers. The risk-return characteristics of portfolio can meet the special investment requirements of customers. 2. It's easier to be stylized. Because the entry threshold of private equity funds is higher, the investors they mainly face are more rational, and the relationship between them is similar to that of partnership, which makes the fund management less troubled by redemption at any time like open-end funds. Only when fund managers give full play to the advantages of their ideas like Buffett can they obtain long-term stable excess profits. 3. Higher output. This is the vitality of private equity funds, and it is unmatched by similar funds. Because fund managers are more conscientious, they have better space to practice their investment ideas, and at the same time, they don't have to disclose detailed investment portfolios regularly like Public Offering of Fund, so the return on investment is higher.