First of all, the investment objectives are different. 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. But at the same time, private investors have to take higher risks.
Secondly, their performance incentive mechanisms are different. The income from the fund company's public offering is the daily fund management fee, which has nothing to do with the profit and loss of the fund. The income of private placement is mainly income sharing. Only when the net value of private placement products is positive can management fees be withdrawn. If the fund they manage is losing money, then they will have no income. Generally, the performance reward extracted by private equity funds according to performance profit is 20%.
In addition, Public Offering of Fund has strict procedures and strict policy restrictions on investment, including restrictions on shareholding ratio and investment ratio. When investing in Public Offering of Fund, the operation of public offering is strictly regulated because it involves the interests of investors. In addition to not manipulating the market in violation of the provisions of the Securities Law, the investment behavior of private equity funds is flexible in terms of investment methods, shareholding ratio and positions.