Research On Operation Model Of Private Equity Fund Of China

In economic development of China, capital markets take on the important mission of the resources allocation, but because capital markets caused by excess liquidity is low efficiency and the indirect financing caused by uneven development of capital markets is lager than direct financing, which affect its function.In the international capital markets, private equity has developed rapidly, and becomes an important financing means next only to bank loans and an important means of IPO. As private equity funds of a private equity investment vehicle are bridge between investing and financing, it is the best way that the company accesses to low-cost financing and introduce advanced management methods. Therefore, for solving the financing bottleneck of the SMEs in China, promoting technological innovation, abundancing capital market level, improving the current low proportion of direct financing structure and maintaining the stability of the financial system in China need to vigorously promote the development of private equity funds. The key point of promoting private equity investment fund focuses on building private equity fund operation model of Chinese characteristics, so that the effective operation of private equity funds, and ultimately investors, fund managers and finance companies are win-win-win.Article is based on the absorption research results of domestic and foreign private equity investment funds, and uses the method of historical research, chart analysis, comparative analysis and quantitative and qualitative analysis. Firstly this paper introduced private equity fund's meaning, types and the difference between other financing methods; secondly it researched domestic and foreign private equity investment funds on the development status and characteristics; then it anglyses from organization form, financing channel, investment projects' selection and management, and exit channel. It actively explore the situation of China's private equity fund operation model, reference mature development experience of foreign private equity investment fund, and propose strategies to build operation model of a private equity fund with Chinese characteristics to improve capital market operational efficiency, evenly develop and improve capital markets, then accelarate healthy and stable development of private equity funds in China.The conclusion is that China should develop the organization form of trust under the limited partnership of private equity funds, encourage institutional investors to invest in private equity funds, expand the scale of investment. At the same time combining quantitative scores and qualitative analysis to select investment projects, in order to find the most valuable companies, and then manage them effectively, at last find out the most suitable way for company development to quit,and effectively use OTC markets to achieve equity withdrawal, and ultimately achieve investment income.