First, the market subjects of equity investment funds mainly include investors, managers and third-party service organizations. As far as income distribution is concerned, it is mainly carried out between investors and managers.

Second, the income of equity investment funds mainly comes from the dividends distributed by the invested enterprises and the income from equity transfer after the project exits. After deducting the expenses and taxes borne by the fund, the income of the fund is first used to return the investment principal of the fund investors. After all investors return the profit principal, the remaining part is the fund profit.

Third, because equity investment funds have the characteristics of professional contract signing, the professional requirements for fund management are relatively high. Therefore, as a basic practice, managers of equity investment funds usually participate in the distribution of fund investment income. Under normal circumstances, managers can get a certain percentage of the fund's profits as a result of management.

Fourth, according to the agreement between equity investment funds and fund managers, sometimes managers need to let fund investors reach a certain threshold rate of return before they can participate in profit sharing.

Introduction: The profit distribution mode of private investment funds belongs to the main economic terms of funds, and it is one of the most concerned issues for investors in fund raising. The distribution order of profits of private investment funds is commonly known as distribution waterfall in English, which represents the order of fund interests. People in the non-fund industry are often confused when they hear this term.

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