A Study On The Operational Mode Of China Buyout Fund

In recent years, the buyout funds of a listed company cooperated with PEcontinuously come forth and many listed companies have announced thepartnership to establish buyout fund with PE. Silicon Paradise has cooperatedwith many listed companies including Dakang Pasture Farming, BeijingUniStrong, Jingxin Pharm, Shenghua Biok Biology in multiple industries.Therefore, it’s important to study the development mode of China buyout fundsespecially the study on the buyout funds of a listed company cooperated with PEalong with the stepwise rise of buyout funds in China.This article firstly studies the development of China buyout funds, and thenanalyzes a basic operational mode of buyout funds, afterwards studies ourcurrent operational mode of China buyout funds by separating it into three maingroups: PE as manager, the brokerages as manager, industry bodies as manager.The buyout funds of a listed company cooperated with PE is a typical form inindustry bodies as manager. This article analyzes emphatically the buyout fundsof a listed company cooperated with PE from the motives, the specificoperational mode and then compares China buyout funds. Then this article doeslots of case studies. At last, this article put forward a view that the buyout fundsof a listed company cooperated with PE is fit with the situation of our countryand have a strong aim. The buyout funds of a listed company cooperated withPE feature a clear mode, controllable risk, low risk of the leveraged buyout andstrong replicability and it will become a important type in China’s private equitymarket. This article also points out a hot issue debated from the angle of effect ofthe operation followed-up.