Private equity company refers to a company department set up to raise funds for a few institutional investors through internal means. The sales and redemption of private equity companies are conducted through private consultation between fund managers and investors, and private equity companies obtain a certain proportion of equity by investing a considerable amount of funds.

1. When issuing securities, governments, financial institutions, industrial and commercial enterprises, etc. Different investors can be selected as the issuing targets, so securities issuance can be divided into two forms: public offering and private offering.

Second, the definition

Compared with public offering, private placement refers to the sale of shares by a few recognized investors (usually less than 35), which can avoid the registration procedure with the Securities and Exchange Commission (SEC). Investors should sign an investment statement, and the purpose of buying is to invest, not to sell again.

First, "private placement" investment is basically illiquid;

Second, it is called "private placement" because investors cannot be openly recruited, sold in the open market or sold on the Internet.

Third, private investors can be angel investors or VC; It can be an individual or an institutional investor. But whoever it is must be a qualified investor.

Recognized investors in Taiwan Province Province are translated as "big investors", and some people translate them as "qualified investors", "authorized investors" or "trusted investors". Article D of the US Securities and Exchange Commission (SEC) stipulates that in order to become a qualified investor, an investor must have a net asset of at least 654.38+0 million US dollars, an annual income of at least 200,000 US dollars, or be in a transaction.

If you want to raise funds through private placement, you should pay attention to this regulation in the United States. Outside the United States, such as China's private placement, there is no explicit provision.

Third, equity investment.

In addition to pure equity investment, there are disguised equity investment methods (such as convertible bonds or corporate bonds with warrants) and portfolio investment methods with equity investment as the mainstay and debt investment as the supplement. These methods are a great progress of private equity in investment tools _ investment methods. Although equity investment is the main investment method of private equity investment funds, its dominant position will not be easily shaken, but the rise of various investment methods and the combined use of various investment tools have also formed an irresistible trend.