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Exit Mechanism Research Of Private Equity Fund By The Mean Of IPO

Posted on:2015-05-14Degree:MasterType:Thesis
Country:ChinaCandidate:C N WangFull Text:PDF
GTID:2296330431486453Subject:Law
Abstract/Summary:PDF Full Text Request
In the past few years PE bas become more popular than ever. After several years’ highspeed development, PE has become the best way of financing except bank loans andIPO. What’s more, it also propels the growth of new technology and high-techenterprises. Since1990s private equity investments entered the Chinese market, PE hasmade contribution to new technologies and emerging industries. It is nature that ourcountry benefits a lot from PE. Without PE, new technologies could not develop at arapid speed and the emerging industries could not be prosperous. It is really hard forme to imagine what China will be without the support of PE. The operation of theprivate equity investment consists of financing, investment, management, exit fourmajor areas. Each part plays an important role. Severing as the last part, exit of privateequity funds is considered as the most important part, because it decides how muchmoney the investors can make. No doubt, IPO has become the first choice of privateequity exit out of its powerful system advantages and strong gaining ability. The truthmatter, we have no in-depth research and analysis of the domestic private equity fundswhatever in economy or law perspective out of the reality that the development ofprivate equity fund in our country is a short time. I am full of misgiving thatdevelopment of China’s PE would suffer from the situation. There are four parts whichmake up of my thesis.Part one "introduction of the general theory of the private equity fund and IPO exit"describes the concept and characteristics of PE and the advantage and disadvantage ofIPO exit.Part two," US sets an example to us, we can learn from US”, as a matter of fact, US isa place where PE is extremely prosperous. US set a good example for us. So we shouldlearn a lesson from the experience of US.Part three,"serious problems we face in China ", the truth is that the development ofPE in China is a short times, it is natural that there are lots of legal obstacles to thegrowth, for instance, authorizing system have a poor efficiency for PE to exit. Theenterprise adopting VAM have no chance to IPO; Due to the restriction abouttransferring of share, the PE always miss the golden chance to exit; The standard ofIPO is really hard for the company which PE invests to meet; It is really hard for the dealers, law firm and CPA firm to resist the temptation to provide service in a illegalway. How to deal this problem is more important than ever.Part four,"the way of solving those problem", this part is nothing but the advice fromlegal perspective to deal those problems which are listed in the part three, for instance,changing securities issuance from authorizing system to registration system, allowingthe enterprise adopting VAM to IPO, getting rid of the restriction about transferring ofshare, lowing down IPO stander, preventing law firm, CPA firm and dealers fromproviding service in a illegal way. I full of confidence that Chinese are talent enough todeal those problems and PE in China would have a colorful future. In that day, PE mustbecome the pillar of capital market which operates in a perfect way.
Keywords/Search Tags:PE, IPO, Capital market, Exit mechanism
PDF Full Text Request
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