Research On The Legal Deficiencies Of Exit Mechanism Of Private Equity Funds

Exit of private equity funds is the most important part in the process of investment, if the funds can exit by the right way at the felicitous time, can maximize the proceeds of private equity fund, investors' investment growth and establishment's growth can be achieved at the same time, therefore, exit mechanism is vitally important. Without legal support and economic foundation, amplify system cannot be improved, supporting system is also very important. In the developed countries, exit of private equity funds is diversify, regulations provide funds to exit, supervision system and information disclosure and other supporting system stimulate the development. But, the construction of multi-level capital market system in China is not yet matured, laws and regulations have failed to guarantee the funds, moreover caused obstacles to exit, supporting system cannot meet the demand of the development of exit mechanisms, in such a context, this article tries to analyze the legal deficiencies of exit mechanism, and puts forward suggestions in order to improve the exit mechanism of private equity fund.This paper will be divided into four parts:The first part explained the basic content of exit mechanism of private equity fund, including its concept, basic characteristics and its importance, to form macroscopic understanding of private equity funds.The second part introduces the exit mechanism of private equity funds, including the exit ways, platform, development and analyses legal provision, put forward the legal deficiencies of exit mechanism of private equity fund.The third part introduces exit mechanism of the private equity funds in the United States, Europe and Japan, including multi-level capital market and legal system. These countries have established relatively perfect exit mechanism of private equity funds, and in the light of comparison and analysis, summarizes successful experience can be applied to the exit mechanism of us.The fourth part will discuss how to consummate exit mechanism of private equity investment fund based on the second and the third part, and based on the development of our country. Firstly, it will emphasize the importance of building multi-level capital market system; secondly, alteration of law must be pay attention to; thirdly, a series of supporting system will be developed, in order to consummate exit mechanism of private equity investment fund.