The operation mode of private equity fund is equity investment, that is, the shares of unlisted companies are obtained through capital increase and share expansion or share transfer, and profits are made through share value-added transfer. Private equity gains are high and low, with a yield of more than 100% and a loss of more than 30%.
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.
The data shows that more than 80% of private equity funds have achieved positive returns in the first four months. As for the specific income, each fund is different. Some funds have high returns, even exceeding 300%. Of course, there are also some funds with unsatisfactory or negative returns. As for how to avoid risks, I personally think that the first choice is to choose a company with relatively strong strength and good reputation, so as to ensure the safety of private investment. In addition, try to choose different fund portfolios, diversify your investments, and don't put your eggs in the same place. (For more information and knowledge about private equity fund financing, please visit watchdog official website. )