On The Pledge Of The Share Of The Limited Partnership Private Equity Fund

The rapid development of private equity funds have arisen a widely public attention. Recently, the registration of private equity fund became difficult which shows the proliferation of private equity funds. In fact, the Limited Partnership Private Equity Fund occupied the vast majority of private equity funds because of its flexibility. However, due to the long period of equity investment, there is a social phenomenon of private equity fund share pledge financing. And the current legislation on private equity fund share pledge does not exist. Study or writing on how to identify the nature of the share of private equity funds is also less, making practical operation in the face of many uncertainties. Whether the share of private equity fund is a statutory pledge subject? Whether the share of private equity fund belongs to the transferable share of the property law? Etc. In this paper, the main content consists of five parts:1. Private equity fund share pledge phenomenon is explained through the introduction of a typical case. An overview of the Limited Partnership Private Equity Fund, including the origin and development of private equity funds, legal definition and the path of development. I also summarized the legal provisions of the Limited Partnership Private Equity Fund pledge and the review of domestic and foreign research. On this basis, it leads to the follow-up questions to be discussed.2. The second part mainly discusses the fitness of the limited partnership private equity fund share becoming the object of a pledge. The rationality and legitimacy of the pledge are discussed in this part. Finally, private equity fund shares identified as transferable fund shares in the property law.3. The third part mainly discusses the rules and procedures for the establishment of a pledge. In addition to the application of chattel pledge rules, we should also sign a pledge contract and register the right. Concerning the relationship between the partners, the general partner must obtain the consent of the other partners in the progress of pledge financing, and to the limited partners, other partners agree is necessary but not sufficient condition.4. In the process of pledge, we found many difficulties, such as registration barriers and multiple risks. And I put forward five aspects of the practical solutions in order to being helpful to the construction of private equity fund share pledge.5. The last part is the conclusion of this paper. Limited partnership private equity fund share pledge is feasible. There is no theoretical and institutional barrier to confirm the Limited partnership private equity fund as the "transferable fund share" in the property law.