Private equity industry has developed rapidly in recent years in China，which provides the market with liquidity and plays an important role for servicing small businesses. Private equity fund management institutions listed on the NEEQ can quickly upgrade private equity fund’s private placement，and expand the size of private equity fund. But in a self-regulatory framework，it is still a lack of systematic and effective regulatory system for private equity funds raising，investing，managing，quitting. If the regulation is not in place，private equity funds are likely to cause “drawing blood” behavior from the NEEQ. According to the explosive growth of the private equity industry，and based on the analysis of the status quo financing for private equity fund management institutions listed on the NEEQ，this paper reviews the hidden risks and regulatory difficulties of the private equity fund management institutions listed on the NEEQ. Combining with the current actual regulation，this paper put s forward clear regulatory objectives，principles and policy recommendations to improve the regulatory system and innovative regulatory mechanisms.