Private equity companies usually do not raise funds from outside, but seek and screen potential investors through private channels. Compared with public offering, private equity companies can decide their investment strategies and investment fields more freely, which is more flexible and more suitable for the needs of investors. However, because private equity firms face fewer investors, the entry threshold is relatively high, and the risks and benefits are also high.
In recent years, private equity companies have attracted more and more attention and investment in the world, especially in developed countries. At the same time, with the growth of the wealth of domestic enterprises and individuals, the private equity fund market in China has also developed rapidly. However, the supervision of private equity firms is more complicated than that of Public Offering of Fund, which requires investors to do more work and risk assessment. However, the high return on investment and good risk control of private equity companies have attracted more and more attention from high-net-worth investors and institutional investors.