Study On The Governance Mechanism Of Private Equity Fund In China

Private Equity Fund (PE for short) originating from Venture Capital Fund, the outcome of financial and industrial innovation, is a sort of investment fund mainly focusing on the shareholder's equity of non-listed companies as its major investment object. The development of PE fund is of great significance for dealing with financing difficulty of China's medium-and small-sized enterprises, promoting innovation of science and technology, optimizing structure of capital market, improving high proportion of indirect financing, maintaining the stability of the whole financial market, and achieving the targets of science and technology progress and industrial structure upgrade. China needs to vigorously promote the development of PE fund. However, solving the problem of governance mechanism option is a key point for promoting the healthy development of PE fund.Based on the study of related references both at home and abroad, the research methods of this article mainly rely on normative analysis and qualitative analysis while making empirical analysis and quantitative analysis subsidiary.Firstly, from the perspective of institutional economics, the issues of contract theory and commission agent related to the governance process of PE fund are analyzed.Secondly, according to the appearing order of corporation, trust system and limited partnership which are three international mature governance mechanism of PE fund, this article takes the method of comparative analysis.Thirdly, this article takes the empirical analysis method for analyzing PE fund cases of corporation, trust system and limited partnership under China's legal system, pointing out the disadvantages of three governance mechanisms, and concluding that limited partnership is the optimum option for China's governance mechanism of PE fund.Finally, this article analyzes the favorable conditions of taking limited partnership as China's governance mechanism of PE fund, and puts forward policy suggestions on developing China's limited partnership. Based on the large amount of references, the study of this article, from the perspective of new institutional economics, analyzes the governance mechanism of PE fund by comprehensively using the methods of induction and deduction, comparative analysis and case analysis. It is hoped that the studies of above-mentioned issues can provide some policy suggestions for China's government departments, private equity institutions so as to promote the healthy development of China's PE fund.