A Study On Exit Mechanism Of Private Equity Fund In China

Private equity fund is a type of private equity capital typically provided to unlisted, high-potential, growth companies in the interest of generating a high return through an eventual realization event such as an IPO or trade sale of the company and then repeating similar investment procedures. Featured by high risks and high returns, private equity fund require huge profits in successful projects to offset losses occurs from failed projects. Therefore, the exit routes play crucial roles in the realization of in come of private equity fund. As a result, it is believed in this thesis that studies on exits of private equity fund would important.First, this dissertation gives the definition of private equity fund, as well as their mode of operation and capital market analysis of the relationship. Second, exit mechanism of private equity fund of four major methods (such as IPO, M&A, Buy-back, Liquidity etc.) to be described. Third, it analyses the status of exit ways and interrelated system in quantitative analysis way and qualitative analysis way, and point out the obstacles in every main exit way in China. At the end, the last chapter puts forward some advices to solve the problems of our exit mechanism.