Research On The Development Of Private Equity Investment Fund

Private Equity Investment is a financial innovation under new economic situation, which highly contributes to the transformation of saving to investment, the cultivation of multi-hierarchy capital market, the reduction of financial risk, and the promotion of hi-tech industry. It is proved by the practice of U.S., Europe, Japan and other developed countries.However, Private Equity Investment advances very slowly in China, contrasting to the rapid growth of Chinese economy, making against the enhancement of power of capital allocation and decentralization of risk, making against industry innovation and transition. It is decorated how Private Equity Investment performs today, and an international comparison is made here. To further analyze the cause that makes Private Equity Investment goes slowly in China, from the point of view of moral hazard, a moral hazard model of Private Equity investment is established. On the basis of the above researches, the police advices on how to push the development of private equity investment fund are put forward.To be concluded, although Private Equity Investment Fund will be confronted with many uncertainties and disadvantageous conditions, with the development of Chinese economy, it will boom and contribute to the more rapid growth of our country.