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Preferential Allotment is a sub-set of Private Placement, and is applicable, only if the securities being offered are convertible into equity.
So, all Preferential Allotment is Private Placement, but not all Private Placement is Preferential Allotment.
For instance, whilst issuance of CCD could attract preferential allotment norms, issuance of NCD would not. But in both cases of CCD and NCD, compliance with Private Placement to be followed.
In other words, all issuance of securities (which are not open to all) would be Private Placement. Further, depending upon whether the security is convertible, Preferential Allotment principles would follow.
Private placement is when shares are offered to a pre-identified investor or group or investors. This is different from a public issue when shares are offered to public at large. A preferential allotment can be by way of a private placement or public issue.