Private equity funds generally refer to funds engaged in private equity (non-listed company equity) investment. At present, there are many private equity funds in China, including Sunshine Private Equity Fund and so on. The number of private equity funds is still increasing rapidly.

The scope of private equity funds is narrower than that of Public Offering of Fund, but they are all institutions or individuals with strong capital strength and high quality of capital composition, which makes the funds raised by them not necessarily inferior to that of Public Offering of Fund in quality and quantity. It can be an individual investor or an institutional investor.

It's very risky

The risk of private equity investment first stems from its relatively long investment cycle. Therefore, if private equity funds want to make profits, they must make some efforts, not only to meet the financing needs of enterprises, but also to bring benefits to enterprises, which is bound to be a long-term process. Moreover, the high cost of private equity investment also increases the risk of private equity investment. In addition, the high investment risk of private equity funds is also related to the poor liquidity of equity investment.