Private placement custody is the act of entrusting private placement funds to professional institutions for asset custody. Investors in private equity funds are usually high-net-worth people, and they are particularly concerned about how to control the risks and preserve the assets of private equity funds. Therefore, choosing an excellent custodian can guarantee the legitimate interests of fund managers and investors.

Custody institutions put all the assets of private equity funds in independent third-party institutions to avoid improper operation or contact with funds by fund managers. Custody institutions need to abide by the laws and regulations of asset custody, conduct daily investment management, fund raising and financial reporting of funds, and also supervise the investment behavior of funds to avoid potential investment risks. The liquidity of private equity funds is relatively poor, and the custodian can constantly optimize the process in daily work, improve asset security and operational efficiency, and provide better services.

Private fund managers need to choose professional custodians in order to standardize asset management and control overall risks. When choosing a custodian institution, we need to consider the leadership ability, credit risk management level, operational ability and understanding the reputation of the custodian institution in the market. Fund managers can make their own judgments on assets, risk classification and evaluation results. Institutions, and choose the most suitable custodian, to achieve the purpose of maintaining and increasing the value of assets.