First, the lack of legal norms, legal forms and illegal forms coexist, which is not conducive to supervision. Second, the operation is out of control and it is easy to become a channel for illegal funds to enter the market. In particular, illegal private equity funds are easy to form interest relations with listed companies, which are extremely secretive, and insider trading and stock price manipulation occur frequently, thus triggering market risks and trust crises. Third, the operating style is similar to that of public funds, with low efficiency, poor performance and high fees, and its rate of return is not significantly better than that of public funds; The high frequency of subscription and redemption destroys the relative closure of private equity funds, and it is difficult to build a long-term stable asset operation environment. If you want to know more about private equity investment, you can go to Cai Ying Online School to see the course about private equity funds today.