Research On The Legal Systems Concerning Supervision Of Private Equity

This thesis mainly demonstrates the private equity fund from the perspective of supervision.Private equity is finance provided in return for an equity stake in non-public corporations.However,instead of going to the stock market and selling shares to raise capital,private equity firms raise funds from sources such as pension funds,endowments,and high net worth individuals by private placement.In the private equity transactions included the implementation process,private equity funds take account of future exit mechanisms,such as initial public offering,merger and acquisition and Management Buy-out,and therefore they make a great profit by the sale of their equity.The thesis sets forth on the analysis of the characters of private equity funds,exploring the funds' own internal control systems,comparing the UK and US's self-regulations of the private equity industry and the legislations whose private equity industries are more mature,and puts forward several suggestion of our own regulation system of private equity.In order to consummate Chinese private equity funds' regulation system,the suggestions are provided as follows: consummate the relevant law concerning the limit partnership,the industrial self-regulation,the limits of the private equity investors,so that we can protect the private equity investors,maintain the stability of our capital market as well as promote the development of our own private equity industry.The first chapter discusses the concept of private equity,analyses its principle features,and introduces the organizational forms of private equity and its business model.The second chapter illustrates the internal control systems of private equity from the aspects of the adoption of limit partnership,the manager's compensation arrangement and the contract arrangements between the private equity fund and the portfolio companies.The third chapter analyses the legal system for the supervision of private equity from the aspects of UK and US's governmental supervision and private equity's industrial self-regulation.The forth chapter introduces the development of our own private equity fund,analyses the existing problems of our own regulation system,and tries to make some suggestions to improve the regulation system and promote the development of our own private equity industry.