China Private Equity Fund Development Research

Private equity fund is a type of financial instrument, which is operated by investment expert and invested into private company to get equity ownership, and offer value-added service to expect capital gain by selling the ownership. As an indispensable part in the diversified capital market, private equity fund has made significant progress in the developed areas like Europe and America. However, private equity developed slowly in China.At first, this thesis introduces the theories about private equity fund, which include the definition, development history, organization type, object of development and withdrawing method. Then the thesis researches into the private equity fund's history in China, environment, investment scale, phrase, and withdrawing situation via related material and data. The thesis further researches the influence of macro variable on private equity funds'scale taking US as example. As last, the thesis analyzes the investment trend of US'private equity fund, and provides suggestions on the growth of the industry in our country.The result indicates that the private equity funds'scale is positively sensitive to GDP and development degree of stock market, and not so sensitive to interest rate. The private equity fund in China has gone through tremendous growth ever since its foundation, and the diversification of capital source, invested industries and withdrawing methods have become the symbol of new era. However, there is large difference between the structures of invested industry in China and US. Private equity funds in US emphasize on R&D on new technology and new business mode, while that in China still chase after the traditional industries. The further development of China's private equity requires more professionals on investment management, a mature manager market, an improved regulation system.