Privately Offered Funds And Institution Of Its Law

This paper is to analyze and research the privately offered fund and their legal regulating situation from the angle of an empirical analysis. It is mainly on the research of its emergence, definition, development and present status and the comparative analysis of relevant legal systems in different countries. It also has the relating legal regulating research on the basis of China's specific condition.Privately offered fund, judged from its concept terms, as a kind of typical investment fund, is different from public offering fund in their ways of raising funds. The so-called privately offered fund is to raise fund through non-public ways of telephone, letters, interview, introduction of middlemen. This fund-raising way is a collective investment system operated by investment fund opened for specific investors, such as an individual with affluent basis or an investment corporation. For the investors, private equity fund is a different from the traditional way of financial instruments. Its production and development is the necessary outcome of the growth of financial market and development of market economy. It is the inevitable result from the perspective of historical development and the market and the operation.There is no conclusive definition of privately offered fund with different views from academic, practice and governments. In our country it is often mistakenly related to illegal fund-raising and underground fund and thus easily arouses people's confusion. In essence, privately offered fund embodies a kind of special trust relationships. In practice, it is mainly operated in the form of such organizational forms as limited partnerships or corporations and it has achieved remarkable achievements and important position. We are relatively late in the development if private fund in China but still it has its necessity and rationality. Apparently during its developing process, many issues have been arisen such as the legality, internal regulatory problems, and external supervision problem, fund operation level, etc.From the principle of solving everything from the reality, it is now extremely necessary and urgent publicize the corresponding regulations for privately offered fund on the basis of our present situation and the reference of mature experience from developed countries. These regulations should be an all-around and effective system containing items on the qualification of fund involved equities, management system and organizational form and means of fund-raising. At the same time, it will be of great importance for the fund-raising practice and the whole financial industry of our country.This essay will cover four parts including the introduction of privately offered fund, the development of private fund in China, the comparison of different legal system on fundraising from home and abroad and the relating legal system in China. By using historical analysis and comparative analysis, this paper will analyze the definition, development, the present situation and the legislative situation of fundraising in different countries and try to design a set of appropriate and effective legal system of private equity fund according to the specific condition of China.