A Comparative Study On The Exit Mode Of Private Equity

Since the 1984 private equity investment in China has experienced 32 years of development and it from a "newborn" gradually become the backbone of the investment market. It is a very broad concept, used for reference of any kind not in stock market and free trade of equity assets investment and can be divided into leveraged buyout, venture capital, growth capital and other forms. For its exit, IPO and M&A exit are very important in the international mature PE market, but in China IPO exit has become the main choice of the mainstream and the public for high return on capital and other factors. But now in the global economic downturn, the stock market slump and the IPO will continue to suspend the background, so private equity investment should now focus on M&A exit ways and according to the actual situation to use the correct way to exit,therefore the analysis of the exit of private equity investment has theoretical and practical significance.This paper firstly describes the domestic and foreign private equity investment theories and from the basic concept of private equity investment, exit process, role, ways and other aspects of a detailed discussion. Taking into account the issue of private equity investment fund is the most concerned about the size of the return on investment, so the study of this paper focuses on the discussion on the average annual return on investment in private equity investment. In the empirical part, we first analyze the performance of IPO in the way of exit and assume the main factors influencing the size of the investment return for the IPO exit, through the 2013 January to September 2015 listed on the gem in Shenzhen with PE background of enterprise of monthly data for empirical analysis, attempts to explore the influence of IPO Exit return on investment is the main factor. Secondly, it discusses the investment performance in the way of mergers and acquisitions, and makes a descriptive statistical analysis of the monthly data, and puts forward some suggestions for the better exit of private equity investment. Finally, the two ways to make a comparative analysis, from a more macro Prudential perspective to explore the best way for enterprises to achieve the vision of the long-term business.In the private equity market choice of IPO Exit, return on capital and being cast in the enterprise net assets income rate, PE Institutions the proportion of shareholding and corporate earnings release rate is positive correlation by combining theoretical analysis with the empirical results. In mergers and acquisitions exit in mechanical engineering, biotechnology, energy is should focus on the field; at the same time private equity capital should be based on their own situation and the current market development status, select the most suitable withdraw and don’t stick to the so-called "high yield" a way out, this is not conducive to the high returns obtained is not conducive to the healthy and orderly development of the enterprise, PE Institutions and market economy.