Ⅰ.On fund-raising, it is mainly raised through a non-public approach to a small number of institutional investors or individuals. Its sales and redemptions are conducted by fund administrator through private consults with investors. In addition, the way of investment is also carried out in the form of private placement, rarely involving the operation of the open market, generally do not need to disclose transaction details.

Ⅱ.Most adopt Equity type investment methods, and rarely involve debt investment.PE investment institutions therefore have certain voting rights for the decision-making management of enterprises that have obtained investment.Reflected in the investment instruments, more common shares or transferable preferred shares, and convertible bonds in the form of instruments.

Ⅲ.Generally speaking, investing in private companies, i.e. non-listed enterprises, seldom invests in publicly-issued companies, and does not involve the obligation of tender offer.

Ⅳ.It is more inclined to have formed a certain size and stable cash flow of formed enterprises, which is distinct from VC.

Ⅴ.The investment period is longer, generally 3 to 5 years or longer, and belongs to medium and long-term investments.

Ⅵ.Poor liquidity, no ready-made market let the equity transferor of a non-listed company to directly enter into a deal with the purchaser. Usually, only when equity transfer and IPO are acquired at the time of merger and acquisition can exit.

Ⅶ.There are a wide range of sources of funding, such as rich individuals, venture funds, leveraged M&A funds, strategic investors, pension funds, insurance companies, etc.

Ⅷ.PE investment institutions mostly adopt the limited partnership system, which has good investment management efficiency and avoids the problem of double taxation.

Ⅸ.Investment exit channels are diversified, such as IPO, TRADE SALE, M&A, target company management repurchase and so on.