Private Equity Funds And Legal Limits Of Illegal Fund Raising

Although the private equity fund has developed in a short time, its rapid development becomes an important force in the economic market in our country. It promotes the sustained development for the small companies, and also pushes the prosperity of the real economy of our country. However due to the development is not very long, the relevant laws and regulations are not so perfect that many companies meet some problems in the raising fund, such as the unqualified investors, the illegal way of raising fund and many investors. These problems may lead to increase the risk of the criminal law.This paper is divided into three parts. The first part is mainly to introduce the case. The focus is mainly on the process of private equity fund that may easily lead to the illegal fund raising. The issues are the qualified investors, the legal way of raising fund and the number of the investors. The second part is mainly to introduce the concepts and the characteristics of the private equity fund and the illegal raising fund through the theory. In the private equity fund there are some problems. They are the definition of the qualified investors, the private way of raising fund and the limit of the number of the investors. And it’s very important to the development of the companies. Because of the laws are not efficient, this article is mainly to analyze these problems. As for the qualified investors, there are some different opinions. And also I will come up with "protection" rule. For the friends and relatives I will give the existing substantial standard. As for the way of raising fund, the identity of word of mouth should be based on the principle of consistent subject and object. As for the number of the investors, this article analyzes the problem whether the raising fund in some times are legal or not. In the third part is the proposal. Because there are some unperfect places in the law of the private equity fund, we need to give the proposals on the basis of the American law.Through the study of the cases, this article states the boundary of the private equity fund and the illegal fund raising. And it will give some proposals to the companies, investors and market norms. I wish to promote the establishment of the private equity fund law, promote the development of the companies, avoid the illegal fund raising.