In 2011, the private equity market faced more stringent regulations. Fundraising, investment and withdrawal were all active in the past year. However, under the influence of the domestic and international economic tublence and the fluctuation of capital market performance, the growth of private equity market slowed down and the competitions became fiercer. In 2012, China is facing the challenge of building the basis of a new round of economic growth. The potential problems underneath rapid growth gradually emerge. Transforming economic development mode and fostering new areas of growth in the economy bring up both opportunities and challenges to private equity investment in China. Investors should seize investment opportunities while controlling risks, improve investment capacity, adapt to the changing policies and markets, provide more supports to the growth of real economy, and eventually discover, improve and realize investment values. <<