Private equity funds operate in partnership mode, so the personal income tax policy of partnership enterprises has always been a hot spot inside and outside the industry, and it is also the focus of many private equity investors.

Private placement is relative to public offering. It refers to an economic way to raise and borrow funds between private enterprises and individuals, and between individuals. Private placement by partnership is a partnership in form. There is no board of directors, and the general partner is responsible for the daily management. It is an economic model that makes use of market rules and realizes capital appreciation and benefit growth through the ingenious operation of capital itself.