(1) In terms of fund raising, it is mainly raised by a few institutional investors or individuals in a non-public way, and its sales and redemption are carried out by fund managers or fund sales companies through private consultations with investors. In addition, the investment method is also carried out in the form of private placement, which rarely involves the operation of the open market and generally does not need to disclose the details of the transaction.

(2) More equity investment is adopted, and debt investment is rarely involved. Therefore, PE investment institutions enjoy certain voting rights in the decision-making management of the invested enterprises. Reflected in investment instruments, common stock or transferable preferred stock and convertible bonds are commonly used.

(3) generally investing in private companies, that is, unlisted companies, and rarely investing in public companies, will not involve the obligation of tender offer.

(4) It is more inclined to the molding enterprises that have formed a certain scale and generated stable cash flow, which is obviously different from VC.

(5) The investment period is long, generally reaching 3 to 5 years or longer, which belongs to medium and long-term investment.

(6) The liquidity is poor, and there is no ready-made market for the transferor of a non-listed company to directly reach a transaction with the buyer.

(7) There are many sources of funds, such as wealthy individuals, venture funds, leveraged M&A funds, strategic investors, pension funds and insurance companies.

(8)PE investment institutions mostly adopt limited partnership system, which has good investment management efficiency and avoids the disadvantages of repeated taxation.

(9) Diversified investment exit channels, including initial public offering, transaction sale, merger and acquisition, and buyback by the management of the target company.