1) Contract constraint, that is, agreeing on the responsibilities and obligations of all parties in advance, is a legally effective risk avoidance measure that all commercial activities will take.
2) Investment by stages, that is, in order to effectively control risks and avoid wasting funds, private equity investment funds should control the investment progress by stages, and the allocation of investment funds should be carried out in stages according to the project progress, rather than in one place.
3) Remediation for breach of contract, that is, in the initial stage of project investment, private equity funds can accept minority ownership, while the management of the project company controls majority ownership, but investors can sign voting rights agreements with the project company to maintain special voting rights on some major issues.
4) Share proportion adjustment, that is, in project investment, private equity funds use composite financial instruments, such as convertible preferred stocks, convertible bonds, bonds with warrants or their combinations, to adjust the share proportion in investment, thus reducing their own risks.