Private equity fund is a fund engaged in private equity (non-listed company's equity) investment, which pursues not equity income, but profit by selling equity through equity transfer paths such as listing, management buyout and merger and acquisition.

Introduction to the characteristics of private equity funds;

Private Equity Fund

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.

property rights

In addition to pure equity investment, there are disguised equity investment methods (such as convertible bonds or corporate bonds with warrants) and portfolio investment methods with equity investment as the mainstay and debt investment as the supplement.

It's very risky

The risk of 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.

Participatory management

Generally speaking, private equity funds have a professional fund management team 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.