The Research Of Limited Partnership-Based Private Equity Fund System

Into the 21st century, large foreign private equity funds have entered China, China's domestic private equity funds are beginning to produce, private equity funds have become uncertain prospects, one of the most attractive areas. August 2006 revision of the "Partnership Enterprise Law" established a limited partnership regime. Limited partnership is the mainstream of the international organization of private equity funds, which is looking forward to the local private equity market has brought the dawn. However, such a limited partnership organized to fit the requirements of market development, which requires China's social environment, legal system and other aspects of national policies to adapt Caixing specific conditions. This paper on private equity limited partnership and to discuss these two issues, then private equity limited partnership as a starting point for deeper analysis.The first part is an introduction, divided into:1. Of the problem2. Research status 3. This innovation possible. The second part is the body is divided into three chapters. The first chapter aims to explore the logical premise of the problem and theoretical foundation. Unified logical premise, based on the theoretical basis of research questions to explore, to create a common platform for discussion. By strict definition of the first private equity fund and raised funds, private equity funds and private equity funds, private equity fund groups such as the concept of organizational form, strict definition of the logical premise of this article. Partnership Law Section is a limited partner in a deep analysis of the system.In the second chapter of the already developed the international private equity funds are described three forms of organization, and comparative analysis with its comprehensive comparison. Organizational form of private equity funds, its essence is between investors and fund managers on the rights and obligations and revenue sharing, risk sharing arrangements for the way the rules. From an international point of view, private equity funds, including the main corporate forms of organization, contract type, limited partnership type. Based on the analysis concluded: Limited Partnership in return incentives, control of distribution, reputation mechanism, operating costs, is superior to the contract and corporations, can well solve the principal-agent problem caused by adverse selection and moral hazard problem.The third chapter is to solve the problem, efforts to construct a limited partnership in China private equity fund in the legal system. Based on national conditions of China, and American experience, put forward their own suggestions:improve the supporting legal system, regulate the operation of the process:rational design of fund managers responsible; from a legal point of view to establish an adequate incentive and restraint mechanisms.I sincerely hope that this venture for the Chinese legal system, the establishment and development of venture capital to make some contribution.