Private equity investment refers to the way that investors obtain the equity of enterprises through private equity funds or by directly signing agreements with enterprises. Private equity investment has the following characteristics:
1. Higher risk: Enterprises participating in private equity investment are generally in the initial stage or growth stage, and the risk is relatively high, so investors need to carefully assess the risk.
2. Higher returns: Due to higher risks, the returns of private equity investment are relatively high. Investors can get high returns from the equity income after the success of the enterprise.
3. Long investment cycle: Private equity investment usually has a long investment cycle and may take five years or even longer to recover.
4. Less supervision: Private equity investment transactions are usually not supervised by regulatory agencies, and investors should assess the risks themselves and bear the risks.
5. High participation: Private equity investors may have the opportunity to participate in the management and decision-making of enterprises, and can participate in the development of enterprises through equity income.