Equity investment is to gain income by investing in the equity of a company and obtaining equity dividends. Under normal circumstances, when a company pays dividends on shares, it pays dividends on the company's income according to the proportion of capital contribution of equity holders. If the invested company can successfully go public, the income of private equity funds may be several times or even dozens of times.

2. The risk is relatively high.

Often high returns are accompanied by high risks. The investment period of equity investment is usually long, and most investors invest in developing companies. The income of investors is closely related to the development of the invested company. If the invested company develops well, investors can get considerable income, but if it is not well managed, investors may suffer heavy losses.

3. It can provide various value-added services for the invested company.

Private equity investment not only provides financing services for the target enterprises, but also provides some other services for them. For example, providing enterprises with advanced management experience and improving the management level of enterprises; Help enterprises to expand procurement and sales channels and promote business development; Help enterprises to coordinate the relationship with local governments and other enterprises in the industry, so as to facilitate the development of enterprises.

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