Study On The Placement Of Limited Partnership Private Equity Investment Fund For Legal Issues

Private equity investment funds originate in Western developed countries, especially in the United States and Europe where have developed nearly a century, which have made great contributions for the Western economic prosperity and social development. In recent years, China's private equity investment fund industry has made great progress. A lot of enterprises grow rapidly under the help of private equity investment funds, such as Mengniu, Baidu, Tencent who are known at home and abroad and other enterprises.Throughout these years, the development of any private equity investment fund in China is closely related with the field of equity investment laws and policies. After the Provisions Concerning the Administration of Foreign-invested Venture Capital Enterprises was put in force in 2003, some important international venture capital institutions like IDG, Sequoia Capital entered into China; The Interim Measures on the Administration of Venture Capital Enterprises promulgated in 2005 provided a legal guarantee for domestic venture capital institutions, which led to the prosperity of the domestic venture capital industry; after private equity investment funds were recognized by the policy in the form of industrial investment fund in 2006, Bohai Industry, Guangdong Nuclear Power, Shanxi Energy and other industrial investment fund raised by Renminbi gradually emerged; in 2007, the revised Partnership Enterprise Law of the People's Republic of China (hereinafter referred to as the Partnership Enterprise Law) put into effect, so that China's domestic private equity investment could adopt limited partnership as its form of organization popularized all over the world, which greatly improved the operational efficiency of private equity investment; in 2008, security companies, social security funds, insurance funds and other types of financial capital were approved to set foot in the field of equity investment, which broadened the source of private equity funds. Many provinces introduced local regulations and preferential tax policies concerning limited partnership private equity investment fund in succession. Tianjin, Shanghai, Shenzhen, Ningbo, Chongqing and other cities were initiators nationwide, which appeal to private equity investment institutions for registering. With the rapid development of China's economy, China has become one of the most active and potential of private equity fund investment markets all over the world.In view of private equity investment funds in the form of limited partnership in China is beginning to show the trend of large-scale development, this dissertation based on reality shall study on legal issue concerning the placement of private equity investment funds under the current legal environment, while the long-awaited Measures on the Administration of Equity Investment Fund is delayed to introduce. This dissertation revolves around unscrambling legal issues involved, takes the fund establishing process as the basic idea, makes a general analysis to the subject, limited partnership agreement, and the governance structure on the placement of the limited partnership private equity investment funds and makes practical recommendations and institutional arrangements, on the basis of analyzing the existing legal environment outline the law ought to be, not only have practical significance for limited partnership private equity investment funds, but also have reference significance to the improvement of existing legislation and the perfection of the Measures on the Administration of Equity Investment Fund under discussion.In addition to introduction and conclusion, this dissertation is divided into four parts:The first part is an overview of limited partnership private equity investment funds, including the concept of private equity investment funds, the development state in China, the comparison with related concepts and the division of the organization form, and clarifies the advantage of limited partnership private equity investment funds.The second part studies on the subject who establishes limited partnership private equity investment funds, respectively studies the eligibility issue of companies and foreigners as general partner and the individual and the large institutions as limited partner.The third part analyzes several core provisions in the agreement of limited partnership private equity investment funds in terms of the legal and practical analysis and offers a proposal.The fourth part, after weighing interests of the general partner and the limited partner interests, paralleled with the interior governance structure of foreign limited partnership private equity investment funds, boldly designs the governance structure of domestic limited partnership private equity investment funds.