Public Offering of Fund is a fund that publicly issues beneficiary certificates to unspecified social investors. Public Offering of Fund is a securities investment fund that raises funds from public investors in an open way, mainly investing in securities. Under the strict supervision of the law, these funds have industry norms such as information disclosure, profit distribution and operation restrictions.

The difference between Public Offering of Fund and private equity funds

1, raising different objects.

The target of public offering funds is the general public, that is, investors who are not specific to society. However, the target of private equity fund raising is a few specific institutional or individual investors, and the initial investment amount is relatively high.

2. Different financing methods.

Private equity funds are raised through non-public offering without public promotion, while Public Offering of Fund raises funds through 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. However, private equity funds have relatively low requirements for information disclosure and strong confidentiality. Usually, the net value is published once a week, once every two weeks or once a month, and there is no mandatory quarterly information disclosure requirement. Compared with public offering, private offering discloses less information.

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 contents and methods of private equity funds are mainly agreed by agreement.

5. Different performance awards

Public Offering of Fund generally does not extract performance rewards, but only collects management fees. Private equity funds can charge a certain performance reward according to the agreement.

6. Different investment objectives

Public Offering of Fund's investment goal is to surpass the performance comparison benchmark and pursue the ranking in the same industry. The goal of private equity fund is to pursue absolute return and excess return. Private equity funds need to pursue absolute positive returns and control downside risks relatively strictly.