Research On The Legal System Of American Limited Partnership Private Equity

With the diversity development of capital market, private equity ("PE") is developing in China rapidly. Nowadays, China has become the most energetic PE market in Asia. From a global perspective, private equity funds has mainly three organi-zational forms:corporation, contract, limited partnership. The main organizational form of U.S. private equity funds at this stage is limited partnership.In2006, the new Partnership Enterprise Law of China added regulations relative to limited partnership enterprises, providing the law basis of our state’s Private Equity. But the new Partnership Enterprise Law specifies the limited partnership enterprise normally, which is not the special regulations for limited partnership Private Equity. Therefore, certain issues concerning development of limited partnership Private Equity of China still need to be settled by laws and regulations. American private equity funds in the limited partnership has a more mature legal system. In this way American private equity funds in the limited partnership legislation can influence ours.In this paper, from a legal point of view discuss the legal system of the United States limited partnership private equity funds and analyze the main issues of current limited partnership private equity funds in china. In the light of the successful experience of the United States, provide some suggestions to improve the development of china private equity funds.Besides the introduction, postscript, there are four major sections in this context.The first part, an overview of the American limited partnership. Firstly, introduce a historical overview of the generation and innovation of the limited partnership. Secondly, provide a basic introduction to the legal structure of the limited partnership in the United States from both internal and external point of view. Thirdly, present the definition of the concept of private equity funds and its main features and distinguish between the concepts of private equity funds and private securities investment funds, venture capital funds. Finally, from the characteristics of private equity investment, exit, operations and costs demonstrate that limited partnership form of this organization fits with private equity funds.The second part, analysis of the incentive policies of the U.S. private equity funds limited partnership investments. First analyze the evolving process of the U.S. tax incentive policies; second aspects of the implementation from the U.S. Small Business Administration Loan Guarantee Scheme and the Small Business Investment Company program of the United States analyzes the financial incentive policies.The third part, analysis of the operating mechanism of the limited partnership private equity funds in the United States. First, the general introduction is that this mechanism is how to run, and then analyze specifically this mechanism from three aspects of financing, investment, exit.The fourth part, analysis of the reference value of the legal system of the United States limited partnership private equity funds. Because of limited partnership private equity fund in practice face many legal obstacles, therefore, how to improve the relevant legal system is the key to promote the development local Private equity limited partnership funds.Based on this, on the basis of summing up the successful experience in the United States, Put forward a sound recommendations mainly from the Partnership Enterprise Law, the financing channels and exit channels...