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What does the parent fund invest in?
There are three main investment methods of private equity parent funds: primary investment, secondary investment and direct investment.

Primary investment refers to the investment made by the parent fund when raising PE funds, and the primary investment business is the original business of the parent fund;

Secondary investment refers to the parent fund's investment in the PE secondary market, which mainly has two forms: purchasing the fund share and subsequent investment of the surviving PE fund, and purchasing the equity of the invested portfolio company held by the PE fund; Direct investment means that the parent fund directly invests in the company's equity. In practice, the parent fund usually makes joint investment with the PE fund it invests in. The parent fund plays a negative role and lets the first investor, namely the PE fund, manage this investment. When the parent fund makes secondary investment, it needs to pay attention to the fairness of share valuation, because there is no authoritative pricing system at present. As a professional parent fund manager, Junyao Capital is also exploring high-quality and scarce resources for investors while screening head stock funds. Combined with the strict screening, in-depth research and professional risk assessment of Junyao Capital Management Team, we will create products with great growth potential and create diversified asset allocation for investors.