Direct investment is relatively rare and common in debt-to-equity swap. Banks cannot have the intermediary business of equity investment.

The full name of PE is private equity investment fund, which means that funds can only be raised through private placement, while general commercial banks are financial institutions open to the public and cannot have intermediate business of equity investment. After a commercial bank provides a loan, it obtains an option, which can recover the loan along the normal value chain of the commercial bank to obtain interest income, or it can exercise the option to enter the PE business model and obtain equity investment income through equity withdrawal.