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Risks And Withdraw Mechanism For The Trusteeship Private Equity Fund In China

Posted on:2016-12-12Degree:MasterType:Thesis
Country:ChinaCandidate:B Y LiFull Text:PDF
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The capital market of our country plays an important role in the development ofmarket economy, especially on adjusting the resource allocation problem. Capitalmarket efficiency is low, however, and the imbalance of development, affected themarket allocation of resources. Private equity funds can be established betweeninvestor and issuer of Bridges of cooperation, can adjust a high proportion of indirectfinancing present situation, rich capital market, promote economic development. Atthe same time, the small and medium-sized enterprise financing platform by privateequity funds, break through the existing bottleneck, the introduction of advancedmanagement mode, promote enterprise development. In the process of the rapiddevelopment of private equity funds, private equity trust system gradually intopeople’s horizons.As trust company trust plans of assembled funds management method, the trustcompany management measures and other documents, private equity fund thedevelopment of trust system into the fast lanes. However, private equity investmentfund system in the process of actual operation, there have been many problems:beneficiary’s lack of effectiveness, the lack of supervision and ability of the trustee;Fund’s investment advisory capacity is too large, the lack of constraint mechanism;Due diligence become a mere formality, the trustee survey does not reach thedesignated position; Letter fund information disclosure mechanism is not sound, etc.Exit mechanism of private equity funds from the Angle of basic laid the success orfailure of investment.Under normal circumstances, the exit channel must be diversified and smooth,especially in the trust private equity industry developed countries, the diversity ofthe exit of the trust model has played a driving role in the development of privateequity funds. Is because of exit mechanism and type the whole trust private equityfund industry there is close relationship between, how to resolve the legal issuesarising from the exit mechanism is top priority. But just type in the trust privateequity fund in China withdrew from the related legal system is not perfect enough, many legal obstacles facing the path of PE exit. In the current market environment,this paper tries to analyze legal issues existing in the exit mechanism, and putsforward his own Suggestions, in order to improve the exit type trust private equityfund in our country legal environment.Private equity fund, trust is the center of the private equity fund: initiated by theoriginator, by raising money to investors, the two sides made the trust contract,investors will be all funds entrusted to the promoter management all, will investcapital restructuring, mainly for the private enterprise equity investment, finallygains under the contract, the trust by the originator to the investors’ capitalmanagement. And from its characteristics, organization advantages and with privatetrust fund, equity trust, etc to discuss the distinction between private equity funds.Organizational advantage. Due to these advantages, the trust system of privateequity fund in our country have the need to continue to develop. At the same timepartition type trust private equity funds and private equity trust fund, equity trustboundaries, provided a basis for later analysis. Finally, list the several forms of thetrust private equity funds, namely: trust+limited partnership model type of privateequity funds, cooperation type management mode of the trust private equity fund,management model of private equity funds, financing channel trust private equityfunds.Equity funds management measures. First is to make trust private equity dealstructure is optimized, type trust private equity fund in the foundation of the legalrisks existing in the internal structure, puts forward Suggestions from four aspects,including the capital injection phase of target enterprise legal and financial duediligence, custody before sign a written agreement with the bank beforehand, to setup the constraint mechanism to regulate trust company, raise a clear distinctionbetween illegal fund raising these Suggestions, and can ensure that the trust model inprivate equity funds raising stage does not turn into illegal fund-raising, the moralrisk can avoid jeopardizing the interests of the principal, during custody in the bankwould not happen the legal risks of the trust property safety when looking for atarget enterprise, the trustor and the trustee does not have a bad end. The second is tomake the trust private equity fund the pattern thoroughly perfect risk control mechanism, to trust company engaged in any type trust private equity fund businessto strictly grasp the risks, avoid risks.+limited partnership model according to theexisting situation, trust trust private equity fund is this trust model risk minimum inthe private equity fund, the most open a exit channels. I suggest that a period of timein the future, trust companies can undertake bold attempt, the trust+type limitedpartnership private equity fund as perfect trust model of the innovative ways of legalsystem of private equity funds and the dominant direction.Equity fund actually perform its avoidance of double taxation organizationaladvantage. Type trust private equity fund heavy tax burden of another reason is thatthe tax system, in practice even if there are some preferential, is basically aimed attrust private equity of the invested enterprise, almost no, in view of the trustees andthe principal tax breaks that hit the enthusiasm of investors and trust companies,which hindered the development of type trust private equity funds. Third, based onthe type of trust in China private equity fund supervision mechanism is analyzed, themechanism is not sound legal risks brought by discussing research. Private equityfunds, although nominally by the banking regulatory commission (CBRC) regulation,compared to the company and partnership model of private equity fund, trust is theonly one type of private equity fund be included in financial regulation form ofprivate equity funds, in practice, the China banking regulatory commission to holdthe equity of the listed company, trust company type lead to trust private equityfunds IPO exit is not easy. Although the China banking regulatory commissionissued to be the private equity investment trust business operating guidelines, cleartype trust private equity funds can through the exit of BPO, however, in thesecurities and banking regulators do not coordinate, before talking about IPO exit isan armchair strategist. Fourth, the type of trust private equity funds IPO exit channelimpeded analysis, studied the type trust private equity fund exit channel impeded themain reason is lack of the trust property registration system lead to loss of thesubject status. The establishment of the trust registration system need quite a longtime, so the search for new type exit channel is trust by private equity funds continueto develop the final requirements. Fifth, for the trust private equity investment trustbusiness operating guidelines of feasibility analysis, although to trust companies to carry out the trust private equity fund business,guidance has made many detailedregulation, but in many ways but not operable, further demonstrates the type trustprivate equity fund in China to be operable new laws and regulations.
Keywords/Search Tags:Private Equity, Internal and external risk, Exit mechanism, Improve themechanism
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