The Research Of The Private Equity Funds Investment Return Of China

In recent years, private equity funds had been a rapid development in china, theyhad become an important part of china’s capital market, at the same time, they alsocontributed their special powers for china’s economic growth. But, because of privateequity funds in our country’s development time is shorter, the research of domesticscholars is not much. In particular, most lack of the investment return of private equityfunds. In order to develop the private equity funds better, we must clarify theoperation mechanism of private equity funds investment. The main structure of thepaper as follows:The first chapter is the introduction of the paper, introduces the researchbackground of the article, the significance of research, literature review, researchideas and innovation.The second chapter is the analysis of operational process of private equity funds,Introduces the concept, features, market composition and the investment process ofprivate equity funds. This chapter defines the scope of private equity funds which thispaper wants to study and gives the influence factors which will be tested in theempirical analysis based on the operation process.The third chapter describes the current development of domestic and foreignprivate equity funds. The data of domestic private equity funds from the report ofZero2IPO Research CITIC, foreign’s private equity funds are analyzed from threecountries of the United States, Britain and Japan.The forth charter is the core of this paper and the local of innovation point. Thepaper uses the samples of IPO companies from October30,2009to December31,2010， makes empirical analysis of the investment behavior of private equity fundsaccording to the appropriate selection criteria and variables. The paper gives thedefinition of private equity funds used in the empirical analysis, uses the total rate ofreturn, month rate of return and the internal rate of return as the assessment variables,investment amount, investment cycle, stage, industry of listed company, region oflisted company, management and region difference as the explanatory variables. The fifth charter combines the results of empirical analysis, summarizes theproblems in the investment return of private equity funds and gives policyrecommendations based on these issues.This paper covers all the data of the return of the domestic private equity fundIPO in the period, the empirical results based on the large amount of data arerelatively accurate.