The Research On The Development Of China’s Private Equity Real Estate Investment Funds

The development of China’s real estate industry was regulated by all kinds ofmacro policies. Especially in recent years, continued regulation of the real estateindustry brings revolution of the capital market. Diversification of financing channelshas become an inevitable trend of the development of the industry. On the other hand,China’s huge amount of private capital is seeking safe and feasible investment channels.The development of the real estate finance opens a wide space for this condition.China’s private equity real estate investment funds develop rapidly from2010.Based on the rapid development of China’s private equity real estate investmentfunds under continuous and severe real estate control policy, the paper studies thedevelopment problems of the funds in China, using qualitative and quantitative analysis,theory and case combination analysis,microscopic characteristics and macroscopicanalysis combination analysis and so on.The core parts of the research conduct a comprehensive analysis of the discussionfrom the micro-operational level and macro-development level.The paper focuses ondiscussing the characteristics and forms of organization of the private equity real estateinvestment funds, summing up the successful experience of overseas developmentwhich is worth learning, analyzing the four steps which are raising，investment,management and exit in detail, pointing out the opportunities and bottlenecks in thedevelopment of China’s private equity real estate investment funds. The researchincludes the following aspects:①At the micro level, the paperdoes certain beneficial exploration on the foursteps of the funds operation---raising, investment, management, exit. The paper focuson the problems that investors selecting fund managers, fund managers selectingprojects and income distribution between investors and fund managers and so on.②At the macro level, starting from the analysis of the development of China’sreal estate industry, the paper analyses the overall development condition, investmentcondition and financing current situation, this leads to the conclusion thatadiversifiedfinancing channels forthe real estate industryinChinaistheinevitable trend.Then the paper outlines the development condition of the funds in our country, and thepaper analyses the opportunities and bottlenecks in our country’s development in detail,at last it concludes development proposals. Through the research, the paper obtains some achievements.At the micro level, theresearch obtains achievements in terms of funds raising, the selection of investmentprojects, income distribution mechanism. At the macro level, the study pointed out threedevelopment opportunities and five development bottlenecks of private equity realestate investment funds in China’s development. Based on these, the paper put forwardfour development proposals. It is expected that theachievement of this research can playa reference role in the development of China’sprivate equity real estate investmentfunds.