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. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies.

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

At present, China's private equity fund is in the early stage of development and gradually attracts attention. Private equity fund is a professional investment management service and financial intermediary service initiated by the United States. Its first attribute is private placement, which has three connotations:

First, there are certain requirements for the scope and qualifications of private equity fund raising targets or investors.

Second, private placement refers to issuing funds without the help of the media. Mainly through personal relationships, brokers, investment banks or investment consulting companies to raise funds. Third, because investors have the ability to resist risks and protect themselves, the government does not need supervision.

The second attribute of private equity fund is equity investment. Private equity funds are mainly used for corporate equity investment. Private equity funds in a broad sense include venture capital/equity investment of mature enterprises and financing of mergers and acquisitions. Private equity funds in a narrow sense do not include venture capital.