Comparative Research On Exit Methods Of Private Equity Investment Fund In China

Private equity investment funds started in the 1990s in China, in recent years with the improvement of the level of the financial market, the pace of development in our country is faster and faster as well. To run the whole process of private equity investment funds, the final exit method is the most important part, it directly determines the success of an investment. Therefore, planning and completing an exit is necessary for research.In this paper, according to the "private equity funds and exit - the advantage and disadvantage and the performance level and risk of each method - exit cases - the current situation and problems -problem cause analysis - summary conclusions and policy recommendations" logical order, learn from the mature research methods and theoretical results, under the premise of elaborating private equity funds and exit methods, analyzes several common exit methods’ strengths and weaknesses in current market, combined with China’s private equity market-related data analysis since 2008 and cases, summing up our private equity fund market trends and exit methods, as well as performance and risk level of each.IPO has the highest rate of return but is difficult to achieve high, NEEQ has developed rapidly in recent years with problems of asymmetric information, immature market and the price bubble, mergers and acquisitions is low costed, flexible and has high return in recent years, but parties of the transaction has little choice and should prevent the internal resistance due to the loss of control. Buy back is flexible and fast exiting, able to exit with the basic guarantee of return on investment, but should be concerned about ability of long-term buy back and the legal effect of the agreement on Valuation Adjustment Mechanism.Analysing the exit methods, risks, current situation, problems and cases, summed up the reasons in macro and micro-level, Finally, for the mentioned problems and reasons, in order to further improve the exit mechanism, offer insights from to improve the legal and regulatory system, construct multi-level market system, accelerate the professionals train and explore exit methods line with market developments and path angles in new economic situation and the support to avoid the risk.