Legal analysis: under the principal priority return mode, the fund does not distribute profits on a single project, but uniformly calculates the profits of all projects. Another basic mode of profit distribution of private equity funds is the project distribution mode, that is, every time the fund withdraws from an investment project, the investment income of the project will be distributed between the general partner and the limited partner.

Legal basis: Interim Measures for the Supervision and Administration of Private Investment Funds

Article 3 Private equity fund business shall follow the principles of voluntariness, fairness, honesty and credibility, safeguard the legitimate rights and interests of investors, and shall not harm the national and social public interests.

Article 4 Private equity fund managers and institutions engaged in private equity fund custody business (hereinafter referred to as private equity fund custodians) manage and use private equity fund property, and institutions engaged in private equity fund sales business (hereinafter referred to as private equity fund sales institutions) and other private equity fund service institutions shall fulfill their duties and fulfill their obligations of honesty, credibility, prudence and diligence.

Private equity fund practitioners shall abide by laws and administrative regulations, and abide by professional ethics and codes of conduct.