1, private equity fund: Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which is used to refer to any kind of investment in equity assets that cannot be freely traded in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value.

2. Ways of raising private equity funds:

Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The difference between the two is whether to raise funds for the general public and whether the ownership of funds has been transferred. More than 50 people raise funds and transfer them to personal accounts, which is regarded as illegal fund-raising. Illegal fund-raising is a very serious economic crime that can be sentenced to death, such as Wu Ying in Zhejiang, Tang Wanxin in Delong and Madoff in the United States.

Private real estate investment funds (few now, such as Jincheng Capital and Xinghao Investment), private equity investment funds (that is, investing in the equity of unlisted companies, PE targeting IPO, such as CDH, Hony, KKR, Goldman Sachs, Carlyle and Han Hong) and private venture capital funds (that is, VC with high risks, such as Lenovo Investment, Softbank and IDG).

Dacheng, Jiashi, Huaxia and other fund companies in Public Offering of Fund are all securities investment funds, and they can only invest in stocks or bonds, but not in unlisted company equity, real estate or venture enterprises, while private equity funds can.