Initial public offering and listing (IPO) are generally carried out when the enterprises invested by private equity investment funds reach an ideal state. When the invested enterprise goes public, the private equity foundation gradually reduces its shares and converts the equity capital into cash.

IPO can convert the non-tradable shares held by investors into the tradable shares of listed companies, and realize the profitability and liquidity of capital. According to the research of Bygraveand and Timmons, the IPO exit mode can make private equity investment funds get the most benefits.

Expand the overall operation process information of private equity investment institutions in fund establishment and management, project selection, investment cooperation and project exit. Every investment institution has its own unique operation mode and characteristics, and its operation is usually low-key and mysterious.

To some extent, the different operation modes of private equity investment directly affect the return level of investment, which is an exclusive secret that cannot be revealed. Although we may not know many details of the specific investment operations of various investment institutions, private equity investment usually has some basic processes and methods.

Baidu encyclopedia-private equity investment