The Research Of Organization Form For Real Estate Private Equity Funds

The real estate is capital-intensive industry. For it, money is blood which is the power for operating projects. As the pillar industry to our economic development, its capitalization is an important standard to measure whether it is mature. However, the financing channel of real estate industry is so single and excessively depending on the bank loan that is not conducive to the development of the entire real estate industry. In recent years, our country has tightened the credit policy to real estate enterprise that make it more difficult to finance. Because of the real estate private equity funds'characteristics, its emergence and growth has become a trend in China's capital market. Relative to its mature developing in America, China's has just started. Although the development of real estate private equity fund is rapid, the laws and regulations involved in it are far from perfect, lack of legal protection is the primary obstacle to its development. Also the basis of our financial environment is weak, the credit system is not perfect that seriously affected the real estate private equity funds developing in China. With the enacted, it confirmed the status of limited partnership, the real estate private equity funds that use the type of limited partnership has become the first choice of many real estate companies. How to improve the legislative system and regulatory mechanisms and establish a diversified market for the capital stock is our priority to develop the real estate private equity funds. Therefore, it has profound practical significance to study the environment and development problems of our real estate private equity funds by learning from the foreign countries successful experience.This paper is divided into three parts.Partâ… firstly I make an brief overview of the meaning and characteristics of the private equity funds, then leads to the introduction of the real estate private equity funds. Based on it, I analyze the financing status and problems of real estate industry and point out that the financing channel is too single and small and medium-sized enterprise is even more difficult. We must innovate financing channels of the real estate industry, so it has practical significance and feasibility to develop the real estate private equity funds. After that, briefly introduce the development status of real estate private equity fund in China. At last, I point that the organization forms of our real estate private equity funds are corporate, limited partnership and trust.Partâ…¡I firstly analyze the system features and value about limited partnership form of the real estate private equity funds. Then I mainly introduce the legislative framework and operation mode of American. Then, based on analyzing the consideration which form we should choose, I compare the limited partnership with corporate and trust, and conclude that the best choice for our real estate private equity funds is the form of limited partnership. So we can learn from the successful experience of the United States to develop our country's real estate private equity funds. Finally, I analyze the application of real estate private equity funds in China.Partâ…¢is this paper's most important part. It mainly analyze legislative status and development dilemma about our country's real estate private equity funds. Then propose the reform measures from the legislative, regulatory, policy and market perspective. So we can make the real estate private equity funds grow and expand in China.