In China, PE is usually translated as equity investment in a narrow sense, that is, "private equity investment", which refers to an investment method of investing in unlisted equity or non-publicly traded equity of listed companies. The source of funds for private equity investment is to raise funds in the form of non-public offering for natural persons with risk identification ability or institutional investors with affordability.
In fact, translating PE into "Private equity investment" seems that the meaning of private is that the financing channels are not public. In fact, there is a misunderstanding that should be understood more from the perspective of investment.
Extended data:
1, long investment period
Whether it is stocks or real estate, investors will not hold it for a long time. And PE investment generally takes five to seven years.
2.PE investment is large.
3. High potential income
4. High risk
Because the ultimate income of PE investment mainly depends on acquisition, merger and listing. Among them, there are many variables and great fluctuations. Coupled with the long investment cycle, PE investment is risky.
Baidu encyclopedia -PE investment