1, the information is opaque
Information opacity is more obvious in the field of private equity funds, and there may be insufficient information disclosure in the whole process of investment operation management, such as investment plan, fund transfer and project tracking management.
2. Investors' ability to resist risks is low.
The high rate of return of private equity funds has attracted many investors to participate. Although the entry threshold is as high as one million yuan, investors do not have the corresponding ability to resist risks.
3. The qualifications of fund managers are uneven.
Private equity funds and fund managers do not have any qualification requirements for industry access, and there are great differences in the management ability, industry status and market recognition of fund managers.
4. The moral hazard is high.
Fund projects are set up in the form of partnership, and it is difficult for investors to supervise and manage the projects due to the limitations of specialty, region and time. Therefore, the moral hazard of private equity funds is high.
5. Project financing is not professional enough.
Project financing requires high practical experience and professional ability, which often exceeds the ability of some private fund managers or management teams.
6. Beware of illegally absorbing public deposits.
Private equity funds often advertise with high returns to attract investors to invest. Sometimes even deliberately exaggerates the rate of return, conceals important information of the project, and is suspected of illegally absorbing public deposits.