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How to use private equity funds
Private equity funds increase leverage by designing structured products.

The so-called structured products, that is, in the same fund, different shares of capital contribution bear different risks and benefits.

For example, the total scale of a fund is 100 yuan, in which 50 yuan, as a priority share, gets a fixed return of 10%. In addition, if 50 yuan lags behind, after the fund gains income, it will first ensure that the priority funds recover the principal and get the annualized income of 10%. After the priority allocation is completed, the remaining profits will be returned to the inferior investors.