Private equity fund is a fund engaged in private equity (non-listed company equity) investment. It mainly includes investing in the equity of non-listed companies or the non-publicly traded equity of listed companies. The pursuit is not equity income, but the profit from selling equity through equity transfer paths such as listing, management buyout and merger.

In addition to pure equity investment, there are disguised equity investment methods (such as convertible bonds or corporate bonds with warrants) and portfolio investment methods with equity investment as the mainstay and debt investment as the supplement.

These methods are a great progress of private equity in investment tools and investment methods. Although equity investment is the main investment method of private equity investment funds, its dominant position will not be easily shaken, but the rise of various investment methods and the combined use of various investment tools have also formed an irresistible trend.

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Private equity investment has developed rapidly in China, and the basic data of investment development, such as the amount of newly raised funds, the amount of raised funds, investment cases and the amount, will keep growing for a long time, which is an investment opportunity brought by the development of emerging market economy and the large number and rapid development of China enterprises.

The risk of private equity investment first stems from its relatively long investment cycle. Therefore, if private equity funds want to make profits, they must make some efforts, not only to meet the financing needs of enterprises, but also to bring benefits to enterprises, which is bound to be a long-term process.

Moreover, the high cost of private equity investment also increases the risk of private equity investment. In addition, the high investment risk of private equity funds is also related to the poor liquidity of equity investment.

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