Legal Research On The Exit Mechanism Of Private Equity Fund

In recent years, private equity fund is developing rapidly in China. As a kind ofnew investment and financing way, private equity fund is an important component inChinese capital market. The exit of capital is quite essential and plays a decisive rolein the whole investment operation process of private equity fund. To some extent, ahighly efficient and impeccable exit mechanism can take private equity fund in theright time to exit enterprise completely, which can not only enhance the reputation ofcorporate and make investors generate a high return on assets, it also can ensure theprivate equity industry continue to maintain sustained and sound development.Therefore, in more mature countries of private equity fund, such as: the U.S. and theUK, both of them have impeccable exit mechanism and diversified ways of exit,which greatly promotes the development of private equity fund. However, comparedwith the developed country, the private equity fund is still at an early stage ofdevelopment in China, there are many obstacles in the exit mechanism, whichseriously obstructs the development of private equity fund.Against this backdrop, thepaper mainly use the method that combined the qualitative analysis with quantitativeanalysis、the method of comparative study and theory combining with actual research.Firstly, we should analyze the status quo in the process of exit of Chinese privateequity fund and then try to find legal problems which are existing in the exitmechanism of Chinese private equity fund. Based on these works, the paper putsforward to perfect the rules and regulations to exit mechanism of Chinese privateequity fund in order to improve legal environment and provides the basis for privateequity fund in practice.The paper is divided into five chapters. The first chapter is the introduction,which briefly introduces the background、significance of the topic as well as theresearch technique and the content of this paper. The second chapter is the foundationtheories part, which mainly introduces the exit mechanism of private equity fund andfour main exit manners. The third chapter, considering realistic status of Chineseprivate equity fund as a starting point and detailed analysis on the constraint in theexit mechanism of private equity fund and the legal barriers which are existing in thefour main exit manners. The fourth chapter briefly introduces the exit mechanism ofprivate equity in the U.S. and its enlightenment to China. The fifth chapter is based on absorb and draw upon all the achievements of the U.S. Considering legal barriers inthe exit mechanism of private equity funds as a starting point, puts forward to a seriesof legal countermeasures and suggestions to improve the exit mechanism of Chineseprivate equity fund.