Private placement fund refers to a fund raised privately or directly from a specific group. The corresponding Public Offering of Fund is Public Offering of Fund. 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. There are basically two ways, one is a contractual collective investment fund based on signing the entrusted investment contract, and the other is a corporate collective investment fund based on * * * contributing shares to establish a joint-stock company.

Private equity funds are mainly divided into four types: private equity funds, venture capital funds, private equity funds and other types of private equity funds. Where 1. Private equity funds mainly invest in publicly traded stocks, bonds, futures, options, fund shares and other securities and their derivatives stipulated by China Securities Regulatory Commission; 2. Venture capital fund, which mainly makes equity investment in growth enterprises at all stages of entrepreneurship; 3. In addition to venture capital funds, private equity funds mainly invest in non-publicly traded corporate equity; 4. Other types of private equity funds invest in areas other than securities and their derivatives and equity.

How to participate in private equity funds?

1. Participate in the specific object determination procedure.

What investors need to do: fill in the questionnaire, evaluate their risk identification and risk-taking ability, and promise in writing that they have met the requirements of qualified investment.

2. Participate in some product promotion meetings appropriately, and choose products that meet their own conditions with the help of fund-raising institutions.

What investors need to do is to understand the relevant information of products and their rights and obligations as detailed and clear as possible. For example, product investment scope, strategy, risk situation, fees and rates to be paid, purchase right, redemption right, transfer right, etc.

What are the risks of private equity funds?

In recent years, private mine incidents have occurred frequently. When investors choose private equity funds, they must pay attention to whether the operating institutions are compliant and whether there are problems with the integrity of the institutions. It is suggested to use the current mainstream accounting early warning software: the APP for checking financial information, and the information of private equity funds, managers, senior executives and China Foundation. You can also carry out real-time credit warning in the process of duration accounting management to prevent the following risks in advance:

1. Risk of opaque information

Because private equity funds do not have strict information disclosure requirements, information opacity is the biggest risk of private equity funds. Investment planning, fund allocation, project tracking management and all other processes involving investment operation management may have insufficient information disclosure.

2. Investors' ability to resist risks is low.

The reason why many investors participate in private equity investment is to value the high returns of private equity funds, but high returns also correspond to high risks. Many investors do not have the corresponding ability to resist risks, so investment should focus on the risks of such private equity funds.

3. Private equity fund risks caused by fund managers.

Due to the lack of strict industry access standards, there are obvious differences in fund managers' management ability, industry status and market recognition. In the same market environment, some fund managers can bring benefits to investors with accurate investment, while some fund managers may cause losses to investors.

4. Higher moral hazard

Fund projects are generally established in the form of partnership. However, due to professional, geographical and time constraints, investors can not effectively supervise and manage the project, so moral hazard is also a private equity risk that investors often encounter.

5. Project financing lacks professionalism.

Project financing generally requires high practical experience and professional ability, but some private fund managers or management teams are not competent enough to effectively monitor and manage project financing.

6. Risks of illegally absorbing public deposits

Some private equity funds will attract investors to participate in investment by deliberately exaggerating income and concealing projects, and these private placements are likely to illegally absorb public deposits.

Although investors are often attracted by the high risks of private equity funds, the subscription threshold of private equity funds is as high as one million, which is not a small sum for many investors, so investors must understand all the factors that may lead to the risks of private equity funds.