Specifically, according to the setting of the private equity fund you subscribe for, the general GP will reissue one issue and will not renew it. Private equity funds that frequently renew their contracts, especially political trusts, real estate projects and equity investments, all indicate that the project term has not met expectations, and some even have risks.
In reality, there are also many private equity funds that can't pay because of their management team or investment mistakes, which leads to the gradual decline in the value of funds and the inability to pay due funds.
Because of its special form, private equity funds decide that many major investments are not made by specialized institutions, but more are personal investment wishes.
Therefore, we should be cautious in investing in private equity funds and have a complete management team to ensure the preservation and appreciation of funds.