First of all, private equity funds have strict requirements on investors (capital and investment experience) in design. I won't go into details.

Private equity funds are generally divided into securities investment funds and equity investment funds.

Securities Investment Fund: Risk ① Price fluctuation of secondary market targets (affected by policies, news, companies and market sentiment, etc.). (2) Design and modification of trading model (most of these funds use quantitative investment, and traders rarely trade) (3) Due diligence and rigor of the risk control department (this can also be included in ②) (4) Compliance in the investment process.

Equity Investment Fund (PE/VC): Risk ① Market space of the invested industry and enterprise ② Business model and profit model of the enterprise ③ Risk control measures formulated by the risk control department ④ Compliance of the investment process.

Another point is to analyze the past investment experience and successful and failed cases of fund managers.