Research On The Selection Of Exit Manner Of Private Equity Fund In China

Private equity is a combination of the financial sector and real industry achievements. After decades of development, private equity plays a more and more important role in the financial market and real industry market. For small and medium enterprises private equity funds can not only meet their financing needs, but also to provide advanced business philosophy. Financing, investment, management and exit are the basic link of the operation of private equity funds. Private equity funds only successful exit, the return on investment can achieve and can start the next operation of the project.In recent years, China’s private equity funds have a larger space for development. In 2013 the amount of the Chinese private equity funds reached $34506000000 and provided financial support for the 349 companies. Compared to the American diversified exit ways, China’s private equity fund withdrawal way is single. From 2010 to 2012 three years, China’s private equity funds to exit are more than 80% exit by way of IPO. In 2013 an important reason of diversification exit from is that IPO was suspended.Each of methods has its good points. In a mature capital markets, the exit of the private equity fund should be combined with their own conditions and economic conditions to select the most appropriate way, rather than the convergence of the selection of a particular way. In this paper, from the angle of mode choice of private equity funds to exit the departure, in the process of building the distinction between the high-tech industry and the traditional industry model of private equity funds and the goal of the enterprise, to provide a theoretical guide for different enterprises.Based on the present situation of exit of private equity funds in China and the related theory,the article summarizes the existing problem of the exit of the private equity fund and gives the relevant suggestions and comments. The article is divided into five parts. The introduction part mainly introduces the research background,literature review,significance and purpose of the research and innovation points of this paper and other content. The first chapter introduces the basic connotation 、operating procedures and exit way of the private equity fund. The second chapter analyzes China’s private equity exit status and existing problems. The third chapter build the model of private equity funds exit based on the game theory. The fourth chapter is the suggestion in this paper and the conclusion. According to China’s private equity fund exit problems,the article gives the advice,hoping to contribute to the development of private equity funds in China.