First, private equity funds raise funds in a private way. Private equity funds are not allowed to use any media to advertise, and their participants mainly join through the so-called "reliable investment news" or directly know the fund manager.
Secondly, in terms of fundraising targets, the target of private equity funds is only a few specific investors, and the number of fundraising should not exceed 50. Although the circle is small, the threshold is not low. There are at least one million domestic private equity funds.
Thirdly, private equity funds have a long operation cycle, wide investment scope, relatively scattered risks and high risks.
It should be noted that the investment threshold of private equity funds is high and the investment cycle is long. The operation mode of private equity funds is equity investment, that is, private equity funds acquire shares of unlisted companies through capital increase and share transfer, and make profits through share value-added transfer. In addition, the number of investors shall not exceed 50. More than 50 people are regarded as illegal fund-raising, and advertisements may not be published through the media.