What is the difference between private equity and private equity funds?

The differences between private equity funds and public equity funds are as follows:

1. The objects raised are different. Public funds raise funds from the general public, that is, unspecified investors in society. Private equity funds raise funds from a small number of specific investors, including institutions and individuals.

2. The methods of fundraising are different. Public equity funds raise funds through public offerings, while private equity funds raise funds through non-public offerings. This is the main difference between private equity funds and public equity funds.

3. Information disclosure requirements are different. Public funds have very strict requirements for information disclosure, and their investment objectives, investment portfolio and other information must be disclosed. Private equity funds, on the other hand, have very low requirements for information disclosure and have strong confidentiality.

4. Investment restrictions are different. Public funds have strict restrictions on investment types, investment proportions, and the matching of investment and fund types, while the investment restrictions of private funds are entirely stipulated in the agreement.

5. Performance rewards are different. Public funds do not draw performance rewards, only management fees. Private equity funds charge performance compensation and generally do not charge management fees. For public funds, performance is only the honor of ranking, while for private funds, performance is the basis of compensation.

6. In addition to some basic institutional differences, private equity funds and public equity funds have major differences in investment concepts, mechanisms, and risk-taking.