Research On Private Equity Withdrawal Mechanism

With the fast development of China's economy development, as a new type of investment method, private equity is playing a more and more important role in China's financial markets. The whole procedure of private equity includes three steps: financing, working capital and exit. Exit is the most important issue, because only perfect exit inducement can the successful circular operation of private equity be guaranteed. Since there is no corresponding exit inducement and complete system design, exit inducement of our private equity is still a big obstacle, which seriously restricts the development of Chinese private equity market.Based on the current economic situation, taking the game theory as analysis tool, this paper deeply discusses the exit inducement of private equity in China and put forward practical suggestions for improvement. On the organization structure, takes the exit inducement of private equity as the base, the paper discusses in turn the classification of exit modes, the choice of exit modes and the right moment, the management of exit stage, in which, the game theory is applied throughout. This paper studies the exit inducement of private equity from the following aspects: first, explains the background and significance of selecting the topic, summarizes the relevant research achievements in domestic and foreign theories field, and briefly describes the main research tools—game theory. Secondly, systematic and comprehensive describes the general theory of exit inducement of private equity, including its concept, significance and classification, then describes theoretically the exit inducement in depth, which provides an important basis for later discussion. Next, from the perspective of the game theory, the paper discusses the choice of exit modes and the right moment at microcosmic level, and combines with the status of exit inducement, in line with the conclusion of the game analysis, some problems are analyzed in a simple way. The paper provides some improvement suggestions, such as developing multilevel capital market strengthening the supervision of financial market and so on. At the end, On the basis of the current economical situation, the new exploration of exit inducement is given.