The advantages of enterprise private equity investment are: 1, which reduces the transaction cost of investors. 2, can give play to the advantages of risk management, make the enterprise value-added. The disadvantages of private equity investment enterprises are: 1. When the original shareholders' rights and interests change, the original controlling shareholders may lose control and the rights and obligations of the enterprise will change. 2. The management right of the enterprise changes with the change of the ownership structure, which is not as stable as it was when it was first established.

legal ground

Article 5 of the People's Republic of China (PRC) Securities Investment Fund Law shall be borne by the fund property itself, and the fund share holders shall be liable for the debts of the fund property to the extent of their capital contribution. However, if the fund contract has other provisions in accordance with this Law, such provisions shall prevail. Fund property is independent of the inherent property of fund managers and fund custodians. Fund managers and fund custodians may not classify fund property as their inherent property. Property and income obtained by fund managers and fund custodians due to the management and use of fund property or other circumstances shall be classified as fund property. If a fund manager or fund custodian is liquidated due to dissolution, cancellation or bankruptcy according to law, the fund property does not belong to its liquidation property.