Study On The Establishment And Development Of Private Equity Fund In Dongying Direct

Private Equity fund (PE) is a new kind of investment instrument , it only has a history of ten years in China, but it plays a more and more important role in speeding up the economic development. In the mean time, the PE which ever dominated by foreign capital has shifted to the local community, more and more local governments begin to realize the importmance of PE, so one after another to set up the venture capital guiding funds to guide and promote the development of the local PE, and introducing a number of relevant preferential policies. As the central city of The Great Development of Yellow River Delta, Dongying face the adjustment of industrial structure, the difficulty of SME Financing and some other problems, in order to promote Dongying's economy develope fast and good , it's necessary to set up and develop PE fund.The domestic scholars have made some progress in PE research, but these researchs are still stay at the initial stages, theorys resarches are focusing on organizational model, legal norms, development Strategies, etc, rare has combination of the reality of a region to design the whole operation process of PE , this paper will study the above problems. And hope it can give some useful advices to Dongying and some other local governments and investment agencies, so as to promte local economy develop sustainable and rapidly.To set up PE fund in Dongying not only can solve the the difficulty of SME Financing, but also can improve the corporate governance structure, improve operational efficiency, optimize and upgrade industrial structure, ultimately it can contribute to the formation of multi-level financing system , this is consistent with the local government's financial policies. So the study of Dongying PE's development has strong theoretical and practical significance. First, this paper describing the basic theory of PE, then analyse the development of PE at domestic and abroad, and discussed the the necessity and feasibility development of PE in Dongying. Second, in view of the development experience of domestic and abroad , designing the operating mechanism of PE in Dongying. Third, giving some advices to promote the development of Dongying PE.