The advantage of the company-based private equity fund is that it helps the company to resist the investment risk in the capital market by implementing large-scale investment operation on the company's idle funds, thus improving the return rate of the company's capital gains. The disadvantage is that the decision-making authority of the fund manager is easily restricted, and the liquidation procedure of the company is complicated.

Company-based private equity fund refers to the private equity fund formed through the organization and operation in the form of a company, which is one of the forms of stock investment companies. Managers of corporate private equity funds usually invest abroad in the name of the fund company and bear the corresponding risks and responsibilities. Investors can become shareholders of the company by purchasing certain fund shares, and have the right to attend shareholders' meetings and directors' election meetings, and participate in major decisions of the company.