Second, the responsibility of the regulatory mechanism is not in place. Private equity investment funds involve fund raising and investment activities, covering a wide range and involving many departments. It is easy to cause some major problems, such as the lack of legal basis for supervision, unclear subject of supervision, imperfect design of specific supervision mechanism, and unclear boundary between government supervision and self-discipline, which have plagued the development of private equity investment funds that are rapidly vacated in practice.

Third, the exit mechanism is not perfect. In China, IPO is the first choice for private withdrawal. However, this highly dependent IPO exit mode affects the return space of private equity funds, and the development of China's multi-level capital market is not perfect, which leads to the narrow exit channels of private equity investment funds in China. The lack of high-quality PE professionals has seriously restricted the development of private equity investment industry in China.

Fourth, the source of funds is limited and the structure of fund creation is single. Restricted by relevant laws and regulations, the institutional funds of social security funds, banks and insurance companies cannot be fully opened to the PE market. This unreasonable and unstable capital source structure has led to the situation that overseas funds are dominant and the investment scale of local institutions is generally small.