| Private Equity Fund is raised in a non-public way, generally refers to engage in private equity (non-listed company's equity) investment fund. It is not only a catalyst to enhance corporate value, but also indispensable way of financing in the process of businesses from birth to growing. The development of private equity funds in China is not very long. Local private equity funds have a big gap with foreign institutions. For example, management and operation, employing culture, investment analysis strategy and exit strategy options. How to implement effective regulation and guidance, encourage and monitor the development of local private equity funds to build a multi-level of domestic capital market and improve the building of social credit system has important theoretical and practical significance.This paper is aimed at illustrating the theory, analyzing the reality and serving the practice. Using the method of deduction and comparative analysis to study the private equity funds, this paper found the right place of PE in China's economic development, the importance of guidance and regulation of private equity funds and the methods and a view to construct a reasonable, sound regulatory requirements. So that private equity funds can play an active role in China's economic growth and social harmony.First of all, the author sums up the basic concept of private equity funds and the development process, explained the organizational form and mode of operation, analyzed the various types of private equity funds advantages and disadvantages;Then, the author did some research on the development of private equity funds in the United States, the United Kingdom and Asia-Pacific regional, summed up two main elements to regulate the development of private equity funds;Subsequently, illustrated the actual situation in our country, analyzed the China's private equity fund market conditions and characteristics of the development, put forward the current problems of development of private equity funds in China; Finally, based on foreign experience and situation of China, the author recommended the reasonable policy in a targeted manner. |