1, the fund-raising target range is relatively narrow. The scope of private equity funds is narrower than that of Public Offering of Fund, but all the targets are institutions or individuals with strong financial strength and high quality of capital composition, which makes the funds raised not necessarily inferior to Public Offering of Fund in quality and quantity, and can be individual investors or institutional investors.

2. Diversification of equity investment Apart from pure equity investment, there are also disguised equity investment methods and portfolio investment methods with equity investment as the mainstay and debt investment as the supplement. These methods are a great progress of private equity in investment tools and investment methods. Although equity investment is the main investment method of private equity investment funds, its dominant position will not be easily shaken, but the rise of various investment methods and the combined use of various investment tools have also formed an irresistible trend.

3. The risk of high-risk private equity investment first stems from its relatively long investment cycle. Therefore, if private equity funds want to make profits, they must make some efforts, not only to meet the financing needs of enterprises, but also to bring benefits to enterprises, which is bound to be a long-term process. Moreover, the high cost of private equity investment also increases the risk of private equity investment. In addition, the high investment risk of private equity funds is also related to the poor liquidity of equity investment.

4. Participation in management Generally speaking, there are professional fund management teams in private equity funds with rich management experience and market operation experience, which can help enterprises to formulate development strategies that meet market demand and improve their management level. However, private equity investors only participate in enterprise management and do not control enterprises.