1. Different definitions

From the perspective of investment methods, private equity investment refers to equity investment in private enterprises, that is, unlisted enterprises. In the process of transaction implementation, the future exit mechanism is taken into account, that is, through listing, mergers and acquisitions or management buyback, the shares are sold for profit.

Direct investment refers to the investment made by an investor in one economic system in an enterprise in another economic system, which enables the investor to effectively influence the management and operation decisions of the relevant enterprise for a long time. Statistically, if an investor holds 1% or more of the equity of an enterprise, it is considered to be able to effectively influence the management and operation decisions of the relevant enterprise for a long time.

2. Different investment directions

Direct investment mainly invests in the secondary market, that is, stocks, bonds, futures and other listed trading varieties. Private equity investment invests in the equity of non-listed companies, usually those small and medium-sized companies with good growth potential (mostly the New Third Board).

3. Different investment methods

While investing in enterprises, private equity investment will also bring advanced management experience, refinancing, expanding sales channels and other additional value-added services to the invested enterprises. Industrial investment is an economic activity in which factors of production are purchased in money, thus converting monetary income into industrial capital and forming fixed assets, current assets and intangible assets. It refers to an investment method in which the interests and risks of equity investment and management services are shared.

Baidu encyclopedia-direct investment

Baidu encyclopedia-private equity investment

Baidu encyclopedia-industrial investment.