Private Equity Fund In The Form Of Legal Inquiry In China

In our financial markets, private equity is "raised funds" corresponds, has raised funds unparalleled advantages, is China's capital market and an important part of the financial system. Accurate, profits, mysterious, is a synonym for private equity. China's accession to WTO, the financial market environment has greatly improved conditions for the development of private equity funds are also more mature, various types of private equity funds have sprung up was born. Private equity funds as a financial investment tool, a way of financing the capital markets, financing conditions, the optimal allocation of social resources have a positive effect. But so far, China's private equity in the law does not confer any formal legal form of fund provisions, coupled with its own defects and shortcomings in the legal aspects must be properly regulated and guided. Because of the existing legal system and the operation of private equity funds do not fit with, so from our reality, the development of private equity funds and the legitimacy should cause us great attention, the use of existing forms of legal recognition of the development of the organization to adapt to China socialist economic system.Existing forms of private equity is not the only legal arrangements. Private equity funds choose what kind of organizational form, first of all depends on the legal arrangements. But in principle, they do not violate the public interest and morality and order to the law should respect the legal system should support protected by law. In which the interests of investors and fund managers, cost, tax burden, the investment risk is a decisive factor in the form of the IMF. In the article the author describes the United States, Britain, Japan, Germany, China Taiwan's private equity fund organization, which detail the U.S. and UK private equity organization model of development and historical process, In order to study the article more with typical and specific.According to the different existing legal forms of organization, private equity can be divided into corporate private equity funds, trust-based private equity fund, limited partnership based private equity fund. Three different types of funds have their own different features and applicability. But the type of private equity limited partnership has a unique advantage in the organization structure, operational mechanisms, the tax burden and risk control, etc., therefore, limited partnership private equity fund based representative organization of the future.Nevertheless, in our private equity funds under the status of legal regulation, private equity funds because of legal system is not perfect, private outside the law is the existence of a limited partnership type of private equity funds run the risk of root causes. Limited partnership type of legal regulation of private equity funds drawback: a limited partner of the"safe harbor"rules for smaller areas, the lack of natural bankruptcy system, tax is unreasonable, the regulatory mechanisms of access and lack of fund managers and lack of regulatory system.Therefore, China-based private equity fund limited partnership should build and improve the following areas: improving the basic legislation limited partnership, limited partnership to expand the "safe harbor" rules apply, and gradually establish and perfect the natural bankruptcy system, a limited partnership to determine the sources of funds of private equity funds Diversified hedge the risks; improving the regulatory mechanism, improve the regulatory objectives and establish the"industry self-government control + regulatory"approach, establishing a limited partnership-based private equity fund manager of the control mechanism; changing fund, a clear legal status of private equity funds; supporting the introduction of legal interpretation and implementation details.