Research On The Exit Way Of Private Equity Investment In China

Private equity investment is a kind of equity capital. It focuses on High-tech Smalland Medium-sized Enterprises, meets the capital desire of these enterprises. In China, PEhas just developed for a short time and the whole process need to be improved. Theoperation of PE includes financing, choosing project and exit. The raising of capital is thetarget of PE, so exit plays an important role in the operation. To choose an appropriateexit way is also important, which determines the rate of return. This paper is about PEexit way, analyses the regarding factors on how to choose exit way, summarizes the exitexperience of other countries and want to promote the development of PE exit way.The introduction part is about the background of PE and the meaning of this study,gives a review of PE on the concept, current research at home and abroad. The wholepaper can be divided into five sectors. Chapter1compares different exit ways andanalyses the advantages and disadvantages of three kinds of ways; Chapter2introducesthe factors which influence exit choice and gives an example according to the factors.The factors are divides into two groups, macroeconomic factors and microeconomicfactors; Chapter3analyses the current situation of PE in China through specific numbersand charts. It recovers the problems and analyses the reasons; Chapter4compares theUSA, Japan and Europe PE exit ways and summarize experience; Chapter5gives adviceon how to promote the PE exit ways, taking capital market, laws, self-developmentorganization, intermediaries and investment institutions into consideration.