A Legal Study On The Forms Of Private Equity Funds In China

Private Equity Fund refers to the investment tool that raises capital from the specific investors in the non-public channel, invests in the target company through the management of the professional team and makes profit when divestment from the target company. Currently, Private Equity Fund is the hot topic in the financial investment field.With the development of the domestic capital market, as well as the opening of Growth Enterprises Market, the Private Equity Fund is facing great opportunities. After bank loan and Initial Public Offerings, Private Equity Fund now becomes the third most important financing instruments in the country.Use the experience of other developed countries（regions） for reference, it is obvious that the overall investment efficiency is largely depends on the appropriate legal form of the Private Equity Fund. The legal form is also one of the core issues to develop and improve the private equity fund market. This paper is going to compare and analyze the existing three legal forms: Corporate, Trust and Limited Partnership. The character, operation mode, organization structure and internal control mechanism of them will be deeply explored. The advantages and disadvantages of each legal form will be discussed based on several standards. The paper finally draws the conclusion that the Limited Partnership is the first choice to establish the Private Equity Fund, with the Corporate and Trust as the useful supplements. At last, the paper provides several practical legislative recommendations to help improve the legal forms of Private Equity Fund.