Advantages: For enterprises, private equity funds have two advantages: stable funds and controllable costs. In terms of funds, unlike loans, private equity funds only increase owners' equity, do not increase liabilities, and cannot withdraw funds from enterprises at will. Therefore, it will not form the debt pressure of enterprises, and it can improve the anti-risk ability of enterprises. In terms of successful control, private equity funds usually do not need to pay interest, so they will not burden the cash flow of enterprises. Enterprises with private equity funds will have stronger balance sheets and financing capabilities.

Disadvantages: dilution of shares, dilution of original shareholders' shares, changes in interests among shareholders, and adjustment of rights and obligations; The autonomy of business decision-making is affected, and new investors may pay attention to short-term returns and ignore the long-term development of enterprises. Sheng Jie Investment answers your questions, hoping to help you.