PrivateEquityInvestment, also known as private equity investment, is an equity investment in non-listed companies. Private equity investment in a broad sense includes development finance, mezzanine finance, infrastructure, MBO/LBO, restructuring and partnership investment funds.

There are four types of private equity investment funds investing in China:

First, specialized independent investment funds with diversified sources of funds.

Second, investment funds under large diversified financial institutions. Both of these funds have the nature of trust, and their investors include pension funds, universities and institutions, wealthy individuals, insurance companies and so on. Interestingly, American investors prefer the first independent investment fund, thinking that their investment decisions are more independent, while the second fund may be interfered by the parent company; European investors prefer the second type of funds, thinking that they are safer because the parent company has a good reputation and sufficient capital. Private equity investment fund. The fourth is the investment fund of large enterprises, whose investment serves the development strategy and portfolio of their group, and the funds come from within the group.

Different sources of funds will affect the structure and management style of investment funds, because different funds need different investment purposes and strategies and have different risk tolerance.