PrivateEquityFund is a special investment fund, which mainly raises funds from specific investors in a non-public way to invest in unlisted companies' equity, non-publicly issued stocks, bonds, futures, options and other financial derivatives and other assets. Private equity funds have high risks and high returns, mainly for investors with certain risk tolerance. The following are some basic knowledge about private equity funds:

1. Characteristics of private equity funds:

Private equity funds have the following characteristics: ① Non-public offering: private equity funds can not raise funds from public investors in the open market, but only from qualified investors in a specific small scope; ② Wide investment scope: Private equity funds can invest in various asset classes, including stocks, bonds, futures and options. ③ Higher risk: Because the investment objects and strategies of private equity funds are usually complicated and risky, they are more suitable for investors with higher risk tolerance; ④ Relatively loose supervision: Compared with Public Offering of Fund, the supervision of private equity funds is relatively loose and less restricted.

2. Investment strategy of private equity funds:

Private equity funds usually adopt a variety of investment strategies, including long-term value investment, growth investment, private equity investment (PE), venture capital (VC), hedge funds and so on. Each strategy has its own characteristics and risk-return characteristics. Investors can choose the appropriate private equity fund strategy according to their investment objectives and risk tolerance.

3. The charging method of private equity funds:

The charging methods of private equity funds usually include management fees and performance awards. Management fee refers to the fee charged by the fund manager to pay the operating expenses, which is usually accrued annually according to a certain proportion (such as 2%) of the fund's net asset value. Performance reward refers to the part of the income extracted by the fund manager after realizing the excess income, which is usually calculated according to the growth rate of the fund's net assets.

4. Exit mechanism of private equity funds:

The exit mechanism of private equity funds usually includes listing, acquisition, repurchase and liquidation. Investors can realize the return on investment through these exit mechanisms.

It should be noted that private equity funds involve high risks. Investors should pay attention to risk control when investing in private equity funds, fully understand basic information such as fund managers, investment strategies and charging methods, and seek advice from professional investment consultants when necessary.