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Exit Mechanism Legal Research Of Private Equity Funds

Posted on:2012-11-25Degree:MasterType:Thesis
Country:ChinaCandidate:Y W WangFull Text:PDF
GTID:2166330332497325Subject:Civil and Commercial Law
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March 5,2011, Premier Wen Jiabao in his government work report proposed, the need to "adjust and optimize industrial structure, accelerate the construction of the modern industrial system, promote industrial restructuring and upgrading"; to "increase the proportion of direct financing, to play good stocks, bonds, industry funds The role of other financial instruments to better meet the diverse investment and financing needs. " In this macro-economic policy, many companies will carry out their own products or technical adjustments in order to create higher added value and improve the industrial chain of China's enterprises in the world's position in this spectacular industrial restructuring and upgrading in, the thirst for capital will be all business problems can not be avoided, which is the private equity fund development vitality.Since 1985 the central government, "the decision on the reform of science and technology" for the first time that "venture capital" concept so far, it should be said that the development of private equity funds in China has experienced more than twenty years, with the relevant legislation and related policy of continuous improvement, it should be said, although "private equity" concept has not officially appear in legislation, but its legal status in practice has been endorsed by the parties, and specifically the introduction of Ye Guan Li long way by the relevant sector on the agenda.Private equity fund the operation of security can be summarized into four main areas, namely "financial", "cast", "pipe", "retreat." In these four areas, the exit part of the profit is directly related to the capital, so most concern, the paper that is part of private equity funds to exit the topic, focusing on the conclusions of two levels:first level discussed existing legal environment and market environment, private equity funds to achieve the best exit; the second level to the development of the industry vision of the relevant legislation and market regulation should be made private equity funds which respond to the demand.Paper is divided into four chapters, the first section in the first chapter, first the object of this paper do not clarify the concept, by private equity fund is divided into three elements of interpretation, definition mentioned in this article Private equity funds have the essential characteristics; then in accordance with the different organizational form, we introduce three different forms of fund organization that corporate private equity funds, limited partnership private equity funds and private equity fund trust the system to be in accordance with later morphology were discussed. Chapterâ…¡introduces the major private equity funds exit path, including the listing, mergers and acquisitions, share repurchase and liquidation, as later on the merits of different ways to exit and make a foreshadowing of the problems faced.Chapterâ…¡the United States as an object, from the legal system and market environment are two aspects of investigation, analysis and market in China improve the legal system in China. Sectionâ… describes the U.S. system and summarizes the U.S. private equity fund withdrawal mechanism of significance in China, in addition to the Securities Exchange Act, Investment Company Act and other laws to make regulations on the private equity fund, the United States in 1982 has been promulgated regulations specifically private equity funds "D regulations" greatly stimulated the development of U.S. private sector; in the market environment, the United States has been formed to the NYSE as the center of the motherboard market to the Nasdaq market as the center of the GEM, to field outside the OTC market and the Pink Sheets OTC market-oriented, mixed in various market entry barriers, easy to select companies according to their own financial market conditions, it is worth attention is that at different levels of capital markets also has a switch board system to urge the companies traded in the market manager due diligence, to avoid being demoted, and taking companies to a higher level of incentive market promotion. Section II of the previous section, based mainly on the U.S. legal system and market environment analysis, the private equity fund for the perfect exit channel of revelation, namely, the construction of multi-level capital market should be market demand; attention to the OTC market and different level of capital market should have different characteristics and docking. Chapterâ…¢Sectionâ… of the comparison of various exit path, clear their own specific conditions applicable, and the advantages and disadvantages. On the basis of the comparison, sectionâ…¡, in accordance with established foreign institutions, funds and local funds face different controls, respectively, the two discussed the best exit options in the design of the factors should be considered, also introduced the practice of the three most commonly used investment instruments:the common power of sale, forced to gamble with the sale of rights and agreements, as sort out their own funds for private equity investment business background and the specific conditions are different, the best exit program design should also be different.Chapterâ…£analyzes the first two major organizations of different forms of private equity funds on the way out the common problems faced and personality problems. Section main exit of private equity in China made a general introduction to current situation, which can be seen exit path which most people pay attention; in the second quarter, the first private equity funds in a variety of exit path the common problems faced by the analysis, then the different forms of the organization, the impact of its own unique analysis of the factors out in order that the existing legal system and market environment, whether private equity funds led by the obstacles which trip to play the space and its boundary.Sectionâ…¢presents aspects of private equity funds to exit the relevant laws and policies of the perfect proposal. First, the rationalization of existing legislation and supporting norms, based on the as soon as possible private equity fund dedicated management practices and organizational forms to guide and cultivate a mature qualified investors, this is the legislative level of response.At the market level, no doubt, should accelerate the construction of multi-level capital market in 2009, after the gate opening GEM, including the motherboard, the SME board, the GEM, including the framework of a national securities exchange market has been basically completed structures, but Many still need improvement. In the securities market, the OTC market is also a multi-level capital market, an important part of our reality-based, share transfer agent shall be to develop the main line system to guide the development of a more standard off-exchange, re-integration of local property rights center, will result in the OTC market and make smooth communication, information sharing, transaction platform, we must also focus on the interface between market and transfer board.Multi-level capital market in China should include three levels:first level to the Shanghai and Shenzhen exchanges as the main board market (including the SME board market); the second level for the Shenzhen Stock Exchange's Growth Enterprise Market; third level is the agency share transfer system as the main body of the OTC market, including property rights around the trading center. Each with three levels of market characteristics, the full convergence, and movements in accordance with certain conditions, to maximize the expansion of private equity exit channels.
Keywords/Search Tags:Private equity funds, exit mechanisms, multi-level capital market
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