Research On The Model Of Private Equity Funds Development In China

With the social economic developing, Private Equity Funds are developing at the high speed in worldwide. It is also attracted widespread attention on theoretical for the reason of it's superior performance. Private Equity fund is the base of the multi-level Capital Market. However, Chinese Capital Market development level is still in low now, the study on Private Equity Funds in China is still in primary stage. Theorists in china is inconclusive on conception, governance system of the Private Equity Funds, besides, the external environment, organization models, supervision models of Private Equity Funds is also not clear. For the reason of the weakness in the theory, Private Equity Funds in Chinese financial structure proportion is still too low, and imbalance with the industrial transformation and economic environment. In 2007"Partnership Enterprise Law " has established a limited partnership enterprise system, which provide a new system and legal platform for the Private Equity Funds. Private Equity Funds which based on limited partner is emerging in large-scale in China.At this background, a systematic study on Private Equity Funds is at great significance. This article tries to research from the background and the basic theory of private equity funds in China to analyze and discuss the issue.This article includes five parts. The first part is an introduction, it will be studied from the research background and the significance of the Private Equity Funds to clarify the purposes and research ideas of this article.The second part introduces the basic theory of the development of Private Equity Funds as the based of the article, it's includes Financial Intermediation Theory, Equity Financing Theory and Principal-agent Theory.The third part is comparing the organizational forms of three Private Equity Funds, further, analying the operational processes and risk management, finally, comparing the development models of Private Equity Fund of U.S. Europe and Japan, learned an experience as an basic of Chinese Private Equity Fund models.The fourth part is an analysis rom the organization, operational processes and regulation of Private Equity Funds. Further, make point of the problems, Finally, make a good choice of Chinese private equity funds models base on China's national conditions. This model should be limited partnership. It is the future of the Private Equity Fund and the direction of reforming related systems, Select portfolio of funds and phased investment mode of operation, our supervision should be taken to the market under government, the implementation of institutional policies for the record.The fifth part is focusing on the existing development model put forward corresponding countermeasures, trying to make our modest contribution to the development of Chinese Private Equity Fund.Finally, based on the experience of other countries, the author outlook the future of Chinese Private Equity Fund.