Private placement fund (PE) and private placement fund both use the word private placement, but the concept is essentially different. PE mainly invests in the equity of unlisted enterprises, which belongs to the category of primary equity market. As a strategic investor, PE actively participates in the operation and transformation of investment targets, and finally makes profits by selling shares through listing, mergers and acquisitions or management buybacks. Private equity investment funds mainly invest in the secondary securities market and earn profits by buying and selling securities.