Research On Legal Issues Of Trust-structure Private Equity

For being with a lower risk and a lower barrier to enter,trust-structure private equity has shown its great advantages beyond other kind of methods.With the downturn economy environment, trust-structure private equity has become an ideal premise.Reference to the definition of trust-structure private equity given by the mature Western financial markets,and by studying domestic research.This paper gives the clear concept of trust-structure private equity,set the trading patterns, aspects of the transaction structure, risk prevention, legislation to expand research and recommendations.The core of this paper is the concept of trust-structure private equity,combined with legal theory and the relevant provisions of existing laws and regulations, to clarify the concept of trust-based private equity investment fund, nature and characteristics. This paper is divided into four parts:The first part of this paper researches the concept of trust-structure private equity.Based on the study on the Private Equtiy,Trust and Investmenet Trust.This paper clarifies the concept of trust-structure private equity,gives those financial concepts sufficience within jurisprudence.The second part of this paper studies the real financial products which has been put into the Chinese financial market.With those examples,this paper analyzes and summarizes the trading pattern and the operating mechanism.The third part of this paper discusses the inherent risks and legal dilemma. Within the whole process of trust-structure private equity company acts as the financing channels,with huge amount raised,the risk raised as while. From a legal point of view, the environment, as the market for the trust body awareness is still shallow, the dominant position of lack of exit channels lead to trust-based private equity investment fund is not smooth, which led to a number of risks.The fourth part of this paper is to optimize the internal control of trust-structure private equity and improve the external legal environment. Entering private equity investments funds the main parties to strictly regulate and improve the mechanism introduced.