Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which refers to the investment in any kind of equity assets that cannot be traded freely 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. The scope of private equity funds is narrower than that of Public Offering of Fund, but they are all institutions or individuals with strong capital strength and high quality of capital composition, which makes the funds raised by them not necessarily inferior to that of Public Offering of Fund in quality and quantity. It can be an individual investor or an institutional investor.

The Interim Measures for the Supervision and Administration of Private Equity Funds of CSRC stipulates that private equity funds can only be sold to qualified investors. Qualified investors should meet three conditions: having the corresponding risk identification ability and risk-taking ability; The amount invested in a single private equity fund is not less than 6,543,800 yuan; The net assets of unit investors are not less than 6,543,800,000 yuan, the financial assets of individual investors are not less than 3,000,000 yuan or the average annual income of individuals in the last three years is not less than 500,000 yuan. At the same time, the Interim Measures also limit the number of investors in private investment funds. No more than 50 investors in private equity funds established in the form of limited liability companies or partnerships, and no more than 200 investors in other private equity funds. Investors should pay attention when investing in private equity funds: don't invest in private equity fund products that promise not to lose the investment principal or promise the lowest income; Fill in the questionnaire of risk identification ability and tolerance truthfully, promise assets or income truthfully, and be responsible for its authenticity, accuracy and completeness. Fill in false information or provide false information should bear corresponding responsibilities. Ensure that the sources of investment funds are legal, and do not illegally pool other people's funds to invest in private equity funds. Invest in legally registered private equity funds. According to China's current laws and regulations, private investment funds implement the system of registration of private investment fund managers and fund filing. China Fund Industry Association is the only institution that accepts the registration of private investment fund managers and fund filing. When confirming whether the fund manager and the fund are legal private equity funds, investors should log on to the website of China Fund Industry Association to inquire whether the private equity fund has been publicized on its website. Generally, the time for public information of private investment fund products is within 20 days after the end of the product raising period, which can be found on the website of China Fund Industry Association.

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