Research On Some Legal Problems Of Private Equity Investment

In the context of deficiency of institutional limited partners (“LP”) in China, themeans by which all kinds of funds participate in the private equity (“PE”) investmenthas attracted increasing attention. What is a qualified investment body will be thechief issue for study in PE field. Further, it is imperative in theoretical and practicalcircles to clarify the issues of state-backed enterprises as general partners (“GP”) ofPE funds, or collective investment schemes including trust products as LP of privateequity funds. In addition, the debt investment model which was actively used in PEinvestment field has aroused general concern in related regulatory authorities.Recently, Chinese authorities promulgated several laws and regulations on issues ofshadow banking, mixed investment business and complex financial instruments.Through studying above-mentioned issues, the author deem that, it is quite necessaryand feasible to establish the system of qualified investors for PE investment atan appropriate time; constraints in form on LP and GP shall be relaxed whilestrengthening substantial regulation; and, with regard to investment tools of PE,regulators shall strike a balance between maintaining financial order and encouragingfinancial innovation. By studying these issues mentioned and putting forward relevantlegal suggestions, this thesis is devoted for the promotion of the orderly and steadydevelopment of China’s PE funds.