Research On Organizing Form Of Private Equity Funds

Private-equity-funds originated in the United States. In recent years, it has gradually entering the economic life in China. To give full play to the function of private equity fund for the financing of SMEs in China, it requires a organizing form compatible with its characteristics. This thesis, in the light of history legal and financial climate of China, on the basis of the characteristics of private equity fund, with positive analysis and comparative analysis as its approach, renders a discussion of an organizing form most compatible with the characteristics of private equity fund.This thesis includes three parts, namely introduction, main body of the thesis and conclusion.The introduction part expounds the background and some research methodologies described of the thesis and presents the significance of this research.The main body of the thesis is divided into four parts:The first part is an overview of organizing form of private equity funds. This part defines the concept of private equity fund and organizing form and the development status of private equity funds in China's .It also points out the requirements of private equity funds and corporate organizing forms, and internal relationship between them. This part grounds for the next literary thought and empirical analysis provides a theoretical basis.The second part introduces the situation of private equity funds in foreign country and areas. In this part, by way of international comparison, it expounds the development and the choice of organizing form of private equity funds respectively in the United States, Britain, Germany and China's Taiwan region's. And it also summarizes in their respective countries and regions how to select the organizational form on internal factors. Chapter grounds for the next literary thought and empirical analysis provides a reference material of international.The third part is the academic and theoretical thinking of the organizing form of private equity funds. This part mainly analyses requirement of selection of private equity funds for making a balanced interests of all parties and to identify organizing form of private equity funds specific criteria for selection. By using above-mentioned specific criteria, I want to analyses the difference private equity funds on corporation and limited partnership to identify their respective advantages and disadvantages. This part mainly services for following empirical analysis and provide a theoretical support and the basis for our private equity funds to establish the direction of the choice of organizational form.The fourth part is the empirical analysis of organizing form of China's private equity fund. According to the selection criteria, China's specific social environment, historical background and legal systems, I compare corporation with limited partnership on costs, tax issues and the incentive and restrictive mechanism. And I want to prove that corporation using on private equity fund is better than limited partnership. At present, as corporation has been statutorily recognized, the next step is to remove the theoretical and practical barriers in the development of corporation so as to give full play to its institutional advantage and make it the rational choice of private equity investors.On the basis of the above argument, this thesis concluded that the selection of organizing form of China's private equity fund must be integrated with own reality, but in China at this stage, relative to the limited partnership, corporation with better characteristics of private equity funds phase to be compatible, it can bring the advantages of its investment, financing and management.