Private equity funds are defined as public offering and private placement, or public offering and private placement, according to the different ways of issuing securities and whether they issue securities to an unspecified public.

Since 1990s, global private equity funds have developed vigorously. From 65438 to 0988, the assets managed by global private equity funds were less than $42 billion, and nearly $2 trillion by the end of 2006. During the period of 18, the fund scale increased by about 40 times. Since the establishment of the capital market, China's private equity funds have quietly developed in the form of entrusted financial management agreements. With the development of China's securities market, the number of investment managers is increasing, the investment concept is more mature, private wealth is increasing rapidly, and the demand for private equity funds is expanding.