With the continuous active development of market economy, the investment behavior of private equity funds in China's economic market has reached a certain scale, which requires strict laws and regulations to strictly restrict the fund raising and investment behavior of private equity funds, accelerate the legalization process of private equity funds, and determine the legal status of private equity funds.

This is the fundamental condition to avoid all risks of private equity funds, and it is also the premise to promote the healthy development of the private equity fund market. China's private equity funds have long been in the "gray zone" on the edge of the law, and their own positioning is very embarrassing, which has neither legal protection nor legal constraints, and has also caused certain hidden dangers to the stable and healthy development of China's economy.

Therefore, it is necessary to establish strict laws and regulations to make all the operations of private equity funds have laws to follow.

Secondly, it is necessary to clarify the status, nature and operation form of private equity funds in law, and clearly stipulate the disclosure of information such as the qualifications, capabilities, sources of fund raising and information of private equity fund managers or management structures.

At present, private equity funds have become an important economic force in the economic market and have a certain scale. However, high returns are accompanied by high risks, and the financial risks generated by private equity funds may also break out at any time.

Therefore, for the relevant laws and regulations, it is necessary to strictly stipulate the investment behavior, operation norms and fund raising requirements of private equity funds, and at the same time, the signing of agreements between investors and fund managers or management institutions should be included in the scope of legal requirements.

It is of great significance to strictly stipulate the legal effect of the contract signing form, operational requirements and standards that affect the interests of both parties, so as to standardize the market behavior of private equity funds, safeguard the interests of investors and promote market stability.