Private equity companies, especially joint stock limited companies established in the form of private equity according to law. The private equity company as a whole is a corporate private equity fund, which has a perfect procedural framework and formal operation and management. Compared with other companies, it is more convenient for private equity companies to set up in Chinese mainland. Semi-open private equity funds have fewer restrictions, do not need strict approval and supervision, are more convenient to operate and have more flexible capital investment strategies.

Characteristics of private equity companies

1. Private equity funds, but the scope is very wide: compared with public funds, the scope of private equity funds is not wide, but the population and financial resources of private equity funds are very rich, and the quality of enterprises or individuals formed by capital is excellent. The quantity and quality of Public Offering of Fund are not as good as that of private placement. Investors can be individuals, enterprises and institutional investors;

2. Equity investment, but the form is more flexible: the early investment method was pure equity investment, which produced various forms of equity investment in the market development, such as the use of convertible bonds and equity corporate bonds; Joint forms, such as debt investment assisting equity investment, are significant progress in investment forms in the market;

3. The risk is big, but the income is big: the main reason for the high risk of private placement is the long cycle. Profitability requires some efforts, first of all, the financing requirements of enterprises, and on this basis, it will also bring benefits, which is definitely a long cycle. However, if PE successfully quits the investment company, the profit in Chinese mainland will be 3-30 times, or 20-30 times. High profits make high capital come to PE market one after another;

4. Intervene in management, but not restrict enterprises: the fund management team is a professional team of private equity companies, with rich management and operation experience, and believes that enterprise planning conforms to the market development strategy and improves the company's management form. Investors only intervene in management, not monopolize the company.