First, the five stages of private equity profit model. 1. In the value discovery stage, seek high-quality projects with investment value and reach a cooperation understanding with the project parties; 2. In the value holding stage, the fund invests in the project, becomes a shareholder of the company, and holds the value of the project company; 3. In the value promotion stage, the fund manager relies on his own advantages of capital aggregation and resource integration to comprehensively improve the strategy and management of the project company, so that the fundamentals of the enterprise are improved and optimized, and the intrinsic value of the enterprise is effectively improved; 4. In the value amplification stage, after the enterprise is cultivated for 2-3 years, it will realize the value amplification by publicly issuing shares in the capital market or selling them to industrial groups and listed companies at a premium; 5. In the value realization stage, after the enterprise goes public, the fund manager chooses the right time and reasonable price to sell the shares of the enterprise in the capital market to realize the value realization. Second, the purchase process of private equity fund 1. Choose the purchase channel of private equity funds. Common purchase channels include fund managers' own sales channels, brokerage sales channels, third-party platform sales and bank sales channels. Step 2 make an appointment. By default, T day is the opening day of private equity fund, and the advance appointment is made at T- 10 (the advance appointment time varies slightly depending on the channel). You can call the service hotline or register online or on site. , consult the sales channel for product information, make an appointment for subscription quota, etc. 3. Sign a contract and remit money. On T-3, investors fill in the trust contract and remit money to the designated bank account. General remittance takes effect on the same day or the next day. The channel will inform them when the funds arrive. 4. The contract comes into effect. The contract comes into effect on T, and the company will generally mail the contract and share confirmation letter to the customer within 10- 15 working days. After completing the above steps, investors have completed the whole purchase process. How do private equity funds make profits? I believe everyone can understand through the above contents. When investors invest, they will first inspect the investment projects and find out the projects with investment value. Under normal circumstances, private equity companies will choose some unlisted enterprises to invest in order to obtain shares in the enterprise. If the enterprise goes public and the investor can sell its shares, then the shares have appreciated at that time and the investor will gain income.