1. Funds are raised through private placement.

The channels for raising funds are relatively narrow, and the requirements for raising objects are relatively high. Usually, private equity funds raise funds through private placement, unlike the public offering in Public Offering of Fund. However, its fund-raising targets are all powerful investors. The object of its collection can be individuals or enterprises.

2. Focus on equity investment.

There are several investment methods of private equity funds, among which equity investment is the main one, which is different from other investments. In addition to equity investment, private equity funds also invest in combination with debt investment.

3. The investment risk is relatively high.

Because private equity funds invest for a long time and need a lot of money, this invisibly increases the investment risk of private equity funds themselves. Private equity funds raise funds through private placement, which is more risky than other investment methods. But its income is more objective.

4. Investors can participate in management.

Under normal circumstances, private equity funds have professional management teams. The management team can make suggestions for the enterprise and put forward reasonable plans suitable for the development of the enterprise. Those investors can also participate in the management of enterprises, but they have no decision-making power.