Influencing Factors Analysis Of IPO Exit Outcome Of Private Equity

As China's economic development, private equity (PE) is playing an increasingly important role. Choice of investment, project management, and exit, are the three aspects of private equity. From private equity funds'view, their goal is to exit from the project, realize the profit and go into the next investment cycle. Therefore, the exit is the key part of a success investment. In view of this, this article focuses on private equity exits with IPO exit as an entry point, studying influencing factors of IPO exit of private equity, in order to find out characteristics of china's private equity investment and make recommendations.First, the paper has done a literature review and summary of the factors that affect the private equity'exit and classified the factors into four cataloge which are PE's characteristics, companies'characteristics, contract and external environment; Secondly, this paper uses empirical research and theoretical research to analysis these factors, on one hand, we use china's data, making statistical description and establishing binary choice models, to research the three factors of PE's characteristics, companies'characteristics and external environment, on the other hand, we established the theoretical model to analysis the influence of contract, we found that China's private equity exit has its own characteristics, such as the addiction to IPO and pursuit of quick success; Thirdly, we give some advices according to the findings, China's PE should be patient, take their time to success, and also the government should accelerate the establishment of a multi-level capital market to create a good environment for PE's exit.