The Analysis Of Private Equity Fund Operation Mechanism

In recent years, as relevant laws and regulations continued to be refined, the development of private equity funds quickly, as well as industrial upgrading and development of enterprises have played an active role in China. At the same time, because the development of private equity funds still in the initial stage in China, there are still some problems that need to be further research and discussion in field of the sources of funds, limited partnership and exit mechanisms.At first, from the fund-raising, investment and exit, the article introduces the status quo PE through specific data in china. Secondly, through the analysis of operation of the mature private equity funds'mechanism in fund-raising, investment, and exit, the article compare with the second chapter and make the connect with the third chapter. Through the analysis of the previous two chapters, the article conclude to three main issues of the private equity fund in our country at this stage: About the source of funds, there is too much foreign capital and lack of domestic private capital; private equity fund in limited partnership operates immaturely; exit mechanism doesn't work effect and efficiently. Finally, in view of the first two questions, issue the trust to put the funds together from ordinary investors, and then invest into private equity fund as the limited partners. Thus, it should to resolve the issues of domestic capital involving to the private equity fund and general partners and limited partners unprofessional in China. In addition, the article analyzes the profit and feasibility to prove that. Through setting up the over-the-counter trading market to resolve the issue of exit, the article takes Binhai International Equity Exchange to explain it from the operation mechanism, products and business process services of Binhai International Equity Exchange in details. Then, the article takes the outlook that Binhai International Equity Exchange will develop to be the OTC market in future.Studying this topic may help to broaden the channel of the domestic capital to involving in private equity funds, and Binhai International Equity Exchange develop to be the OTC. Then, it accelerate the development of private equity fund environment and make the private equity funds develop better and better finally.