Private Equity Investment Fund Organization Form Of Legal Analysis

Although Private Equity Funds do not have a long history in China, China has already became the most of attractive Private Equity market. Private Equity Funds could perform a positive effect for solving financing problem of small-and-medium-sized enterprises and update industrial structure in China. How to build a better and more effective organizing mechanism is important for the development of Private Equity Funds.This paper is going to discuss two kind of organizing mechanisms of Private Equity Funds legally:corporation and limited partnership. By analyzing legal foundation and practice feature of these two organizing mechanism, plus demonstration using the method of comparative study, this paper will analyze the the advantage and disadvantage of corporation and limited partnership. This paper will conclude China can not simply use American or English organizing mechanism. However, China should develop its own mechanism based on current foundation. Finally, by considering these theory and background, induce some approaches of combating these problems.