Private Equity (Private Equity), referred to as PE, is an equity investment in private enterprises, that is, unlisted enterprises, by raising funds in the form of private equity, thereby promoting the growth of the value of unlisted enterprises, and ultimately through listing, An investment behavior in which shares are sold and cashed out through mergers and acquisitions, management buybacks, equity swaps, etc.

In terms of structural design, PE generally involves two levels of entities, one is the fund management company as the manager, and the other is the fund itself. Limited partnership is the most common form of PE organization in the world. Under normal circumstances, fund investors, as limited partners (LP), do not participate in management and assume limited liability; fund management companies, as general partners (GP), invest a small amount of money and control various decisions such as management and investment. , bear unlimited liability.