Private equity fund is an investment tool that pays attention to high returns and high risks. Issued by banks and other institutions to a certain range of investors, not publicly issued, generally not publicly issued to the public. Because of its high risk and high return, only wealthy and qualified investors are allowed to participate. For banks, private equity funds are also a way to realize diversification strategy and increase their own income.

Compared with Public Offering of Fund, private equity funds are more flexible, and can make investment adjustments according to market conditions and risk preferences, making it easier to obtain high returns. At the same time, the liquidity of private equity funds is very low, which usually needs to be held for a long time, and it is also a long-term stable source of income for banks. Since the investors of private equity funds are basically rich people and are not subject to bank financial supervision, banks can invest and innovate more freely.

Because private equity funds are risky, investors need to have a certain understanding of funds and risk tolerance. In addition, private equity funds are not subject to financial supervision, and investors must bear the risks and losses arising from fund investment. Therefore, as the issuer of private equity funds, banks need to disclose the risks of funds transparently, and conduct investment guidance and risk management according to investors' risk preferences and actual conditions.