1. Private equity funds are legal in China as long as they meet the statutory forms and requirements;

2. Private equity investment, also known as private equity investment or private equity fund, is a very broad concept, which refers to the investment in any kind of equity assets that cannot be traded freely in the stock market;

3. Passive institutional investors may invest in private equity investment funds and then be managed by private equity investment companies to invest in the target companies;

4. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms;

5. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value.

Legitimacy of private equity fund;

1. Managers of various private equity funds shall go through the registration and filing procedures through the private equity fund registration and filing system of China Asset Management Association. Otherwise, it shall not engage in private equity fund business activities;

2. Those who participate in the private placement must be qualified investors. Qualified investors are defined by the CSRC: the minimum subscription is 654.38+0 million, and Tuo Dou is not allowed. This definition is to put a part of all the money into it. Eggs can't be put in one basket, let alone other people's eggs. Therefore, private placements below 1 10,000, regardless of whether qualified investors encourage investment, are basically deceptive;

3. Private placement must not be publicized. The new "Fund Law" clearly stipulates that it is not allowed to publicize to unspecified objects through newspapers, radio stations, the Internet and other public media or lectures, reports and analysis meetings.

4. A contract must be signed between investors and managers to clarify the obligations and responsibilities of all parties. Please refer to the latest fund law for details. Pay attention to whether the contract elements are the same as those stipulated by law. Many fake private placement contracts are beautifully done, but a comparison is obviously false. Fourth, the new fund law stipulates that the number of private placements cannot exceed 200.

Legal basis: Article 3 of the Interim Measures for the Supervision and Administration of Private Investment Funds.

Engaged in private fund business, should follow the principles of voluntariness, fairness, honesty and credibility, safeguard the legitimate rights and interests of investors, and shall not harm the interests of the state and the public.