Private Equity Funds From The Legal System Research

As the new favorite of the capital market, private equity funds develop rapidly inrecent years, having become the third financing method just next to bank credit andIPO。The object of private equity funds is to exit from the investing project and gainhigh profits, and then enter the next round of investment. The exit of private equityfunds is so important that it can determine the ultimate success or failure of privateequity funds. The country with developed private equity funds industry （such asAmerican） has smoothly exit to improve the development oft his industry. While,the private equity funds industry is newly developed in china so that the relevant lawsand regulations of Private equity funds are far away from perfect, which hinds thefurther development of private equity funds. In view of this, we studied related lawsand regulation on the exit of Private equity funds of other countries, such asAmerican、 Germany、Japan, and then try to analyze the legal obstacle in each formof exit in china. And give some relevant recommendations with the hope of improvingthe environment of law in china.The Paper Probes into this issue from four aspects:The first chapter introduces the content and features of private equity funds, andbriefly describes the classification of private equity funds. After describing thedefinition and importance of exit of private equity funds, this paper introduces fourforms of exit: public offerings, mergers and acquisitions, share repurchases,liquidation exit。 then, it makes a comprehensive comparison of the merits anddefects of these four forms.The second chapter introduces the related laws and regulation on the exit ofPrivate equity funds of other countries, specializing on the legal design of exit ofPrivate equity funds in the united Statues,German and Japan.The third chapter briefly describes the current situation of exit of private equityfunds in china and then discusses the legal obstacle in each form of exit.The fourth chapter envisages an improved legal system for the exit of privateequity funds in china.