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. The expected annualized expected return of the trust is stable, the investment period is 1-3 years, the investment threshold is high (1 10,000), the issuance scale is large, and the general start exceeds 1 100 million.
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. Private equity funds generally only raise funds in "small circles" (only for a specific few investors); The starting point of investment is usually high, and organizations such as natural persons and legal persons generally require property of a specific scale.
The difference between private placement and trust
1, 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.
2. Investment objectives
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.