Private equity investment (PE for short) is an investment behavior of raising funds in the form of private placement, investing in private enterprises, that is, unlisted enterprises, so as to promote the value growth of unlisted enterprises, and finally selling shares and withdrawing through listing, mergers and acquisitions, management buyback and equity replacement.

In structural design, PE generally involves two main bodies, one is the fund management company as the manager, and the other is the fund itself. Limited partnership is the most common form of private equity investment organization in the world. Under normal circumstances, fund investors, as limited partners (LP), do not participate in management and assume limited liability; As a general partner (GP), a fund management company invests a small amount of money, grasps various decisions such as management and investment, and assumes unlimited responsibilities.