1. Private equity funds raise funds in a private way. In the United States, children's funds and pension funds in Public Offering of Fund generally attract customers by advertising through public media. According to relevant regulations, private equity funds are not allowed to advertise through any media, and their participants mainly join through so-called "reliable investment news" or direct knowledge of fund managers.
Second, private equity funds have a strong investment purpose in the operation mode. In terms of fundraising targets, private equity funds only target a few specific investors, and the circle is small but not low. For example, in the United States, hedge funds have very strict regulations on participants: if they participate in the name of individuals, their annual income in the last two years will be at least $200,000; If you participate in the name of the family, the family's income in the past two years is at least 300,000 US dollars; If you participate in the name of an institution, its net assets will be at least $6,543,800+0,000, and the number of participants will be limited accordingly. Therefore, the investment goal of private equity funds is very strong, which is more like an investment service product tailored for middle-class investors.
Third, private equity funds have higher returns. Different from the strict information disclosure requirements in Public Offering of Fund, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more hidden, the operation is more flexible, and the chances of obtaining high returns are correspondingly greater.
Fourth, the operation mode of private equity funds has its guarantee. The foundation gives the guaranteed funds to investors and sets the bottom line accordingly. If it falls below the bottom line, the operation will be automatically terminated and the deposit will not be returned.
5. Receive the account number (that is, the customer only needs to give the account number to the private equity fund). If it is lower than the agreed loss ratio (generally 10%-30%), the customer can automatically terminate the agreement and share the agreed profit part or the part exceeding the agreed profit ratio (generally 10%) according to the agreed ratio, aiming at familiar customers and large enterprises.