DPI refers to the income that the fund has distributed to investors, that is, the dividend rate of invested capital. Liquidation multiplier: the ratio of dividend to invested capital. For example, the cash withdrawal income is 5 million, the original shareholder invests 3 million, and DPI=500/300=5/3.

MOIC is a multiple of the fund's investment return. For example, the MOIC of a 1 100 million fund is 5, which means that the asset price invested by this fund is 500 million. If expenses and Carry are not considered, the total income of investors is five times.

trait

1, the return on equity investment is very rich. Unlike creditor's rights investment, which earns a certain percentage of interest income from invested capital, equity investment obtains dividends from the company's income according to the proportion of capital contribution. Once the invested company is successfully listed, the profit of private equity investment fund may be several times or dozens of times.

2. Equity investment is accompanied by high risks. Equity investment usually needs to go through several years of investment cycle, and because it is invested in developing or growing enterprises, the development risk of the invested enterprises themselves is very high. If the invested enterprise ends in bankruptcy, the private equity fund may lose all its money.

3. Equity investment can provide all-round value-added services. Private equity investment not only injects capital into the target enterprise, but also injects advanced management experience and various value-added services, which is also a key factor to attract enterprises.