Private equity investment 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. Fund custody: Fund custody means that commercial banks accept the entrustment of fund managers and represent the interests of fund holders. With the continuous development of asset management business in Public Offering of Fund, the fund custody market is becoming increasingly popular. According to the Administrative Measures on Custody of Securities Investment Funds, the Interim Provisions on Custody of Securities Investment Funds by Non-bank Financial Institutions and the Procedures for Qualification Examination of Non-bank Financial Institutions for Fund Custody promulgated by the Securities Regulatory Commission of the People's Republic of China, the review focuses on the applicant's settlement method, staffing, department setting, software and hardware configuration, and custody business system.

The specific business shall be the responsibility of the fund institution supervision department of the CSRC. After approval, the fund institution supervision department of the CSRC will issue a letter of no objection to the pilot comprehensive custody of private equity funds. However, according to the letter number. 20 14 1 172 notice of the securities fund institution department of the CSRC on doing a good job in the supervision of the comprehensive custody business qualification of private equity funds and the payment of customer funds consumption services. The CSRC entrusts the examination and approval of the administrative license for the comprehensive custody business qualification of private equity funds to China Securities Investor Protection Fund Co., Ltd. by administrative entrustment, and the private equity funds shall be managed by the fund custodian. If the fund contract stipulates that private equity funds shall not be managed, the institutional measures and dispute settlement mechanism for ensuring the property safety of private equity funds shall be clearly defined in the fund contract.