Exit Mechanism Legal Research Of Private Equity Funds

In recent years, China's private equity funds has entered a period of rapiddevelopment. However, China's private equity funds in legal regulations is stillimperfect. The operation of private equity funds can be summarized into three links:raising a fund, management and exit from the investing projects. During the operationof the private equity funds, the exit of capital is quite important. Establishing the exitlegal system of private equity funds is conducive to the development of private equityfunds. China's private equity funds industry started late, and the legal regulations arefar away from perfect, so this article focuses on the analysis of exit legal mechanismof private equity funds.The article is divided into a total of four-part study:The first chapter point out the concept and content of exit mechanism of privateequity funds. And then introduces the four exit path: initial public offering (IPO),right offering, shares buy—back and write—off. The first chapter in section IIIintroduces the current situation of the exit of private equity funds in China, all thefollowing study of exit legal Mechanism is based on this.The second chapter analyzes the status and legal obstacles of China enterpriseslisting mode, including oversea listing and domestic listing. The analysis of red chipslisting mode is important for private equity funds seek oversea listing. And then thischapter discuss the legal obstacles of three different forms of funds organization(corporate, trust and limited partnership) may run into.The third chapter detailed analysis the way to exit for private equity fundsincluding right offering, shares buy—back and write—off. The related law andregulations of the exit of private equity is deeply discussed. This part analyze the limitation of right offering in company law and the limitation of company sharesbuy—back in company law. These legal restrictions are not conductive to thedevelopment of private equity funds.Based on the inadequacies of legislation the last chapter comes to some advicesto perfect the exit legal mechanism of private equity funds. This paper give somesuggestion in building the multi—level capital markets. To construct a good legalenvironment is conducive to promote the development of private equity funds.