Private placement, that is, private placement funds, refers to securities investment funds that raise funds from specific investors in a non-public way and invest in specific objects. ?

Private equity funds in a broad sense include private equity funds in addition to securities investment funds. In China's financial market, "private fund" or "underground fund" is usually a collective investment that is privately raised by specific investors, as opposed to the securities investment fund that is supervised by the competent department of China government and publicly issues beneficiary certificates to unspecified investors. ?

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.

Extended data:

Private equity funds originated in the United States. At the end of 65438+2009 and the beginning of the 20th century, many wealthy private bankers put their money into high-risk emerging industries such as oil, steel and railway through the introduction and arrangement of lawyers and accountants. This kind of investment is completely decided by investors, and there is no special organization, which is the embryonic form of private equity funds.

Modern private equity industry has experienced four important development periods.

1946 ~ 198 1 in the early PE period, some small private assets invested and small enterprises contacted private placement, which made PE start.

The first round of economic depression and prosperity from 1982 to 1993 made PE develop into the second period, which was characterized by a large wave of acquisitions with junk bonds as capital leverage, and reached its climax in the late 1980s and early 1990s, when it was still frantically acquiring RJR· Beske, a famous American food and tobacco company, under the almost collapsed leveraged buyout industry environment.

PE was washed in the second economic cycle (1992 ~ 2002) and experienced the third evolution period.

From 2003 to 2007, it became the fourth important period of PE development. The global economy has gradually weakened from the previous internet bubble, and leveraged buyouts have reached an unprecedented scale, thus making the institutionalization of private equity enterprises unprecedented.

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