Private Equity Fund Business Risks Prevention And Control

In China, Private Equity (PE) is often referred to as private equity investments, mainly refers to private enterprises in the form of the rights of non-listed investments, only a very small number of PE funds invest in listed companies.Private equity investment funds in China started late, but have developed rapidly. However, it is insufficiently experienced, and the withdrawal mechanism is also insufficient perfect, most appeared by the underground status, therefore, although the prospect is broad, it is inevitable to enters the financial market by the public status. In the short term, the PE investment fund in our country lacked enough legal safeguard and support, the majority is out of the legal control and the existing supervision. And its own operational risks and the risk which created to the market are both quite big, mainly including legal risk, business risk, fluid risk, credit risks and moral hazard and so on.Therefore, it's essential to study PE investment fund and the risk. This article mainly studied PE investment fund, including risk control and prevention, learned massive domestic and foreign research results. In the foundation, we take the original angle of view, from the specialized angle, explained with the brand-new viewpoint to explain PE investment fund and the operational risks, which could provide the scholars, jobholders and the administrative staff with certain instruction and the basis. Simultaneously, it's helpful to study PE investment fund operational risk for understanding the new-emerging things more profoundly.This paper insisted that link theory with practice, and can stand up the test of the practice. The author read the massive domestic and foreign literature, has made the upholstery for own research, give PE investment fund comprehensive and profound explanation, includingits rich connotation, the distinguishing feature, classification, the basic skeleton, the operation pattern and the research significance. Above this foundation, this paper has studied and analyzed operational risk production, the guard and the control, has greatly strengthened profits from the significance and the innovation value.The article regarded the actual situation of financial crisis, thought that although PE investment fund is able to change traditional the merger and acquisition market effectively, it's still vigilant to follow up when the financial crisis fades gradually, and the global wave of mergers and acquisitions raise once more. It should pay attention to among the probability, the time and frequency of the operational risks, in order to achieve the optimal allocation.