Research On The Legal Mechanism Of Private Equity Funds Exit Through IPO

Private equity funds are sought after by domestic and foreign capital market investors due to their high returns,private equity fund investors have entered the private sector to invest a large number of targeted enterprises in the seed and growth stage in order to obtain high profits.According to the data of the research center of Qingke in recent years,private equity funds had obtained private financing amounted to 198 billion 46 million in the first 11 months of 2016,a total of 1554 cases of private equity funds completed the exit,Including 492 IPO exit,28 backdoor listing exit,297 merger exit and 5 liquidation exit etc.The exit of private equity funds is the most important link in the operation of private equity funds,on the one hand,it determines whether the private equity fund can get the maximum benefit from the economic behavior,on the other hand,it also determines whether there are more enterprises to obtain financing of private equity funds.IPO exit as the most valuable exit path of private equity funds,the extent of its exit legal mechanism also largely affects the efficiency of IPO exit.How to draw lessons from the United States and the United States private equity funds through IPO exit legal mechanism,and improve the legal system of China's private equity funds exit through IPO,is the focus of this paper.This paper is divided into four parts.The first part briefly introduces the concept of private equity funds,and analysis of the private equity fund IPO exit,mergers and acquisitions exit,share repurchase exit and liquidation exit.By using the new institutional economics transaction cost theory,this part analyzes the importance of private equity funds through IPO exit for private equity fund investors and target companies.At the same time,this part summarizes the status of private equity funds exiting through IPO.The second part introduces the legal system of China's current private equity funds through IPO exit,focusing on the plight of private equity funds through IPO exit.This part also analysis the difficulties encountered from the legal provisions.The third part introduces the multi-level capital market exit platform,focusing on the analysis of the NASDAQ market and the registration system and the UK's AIM market and lifelong sponsor system.By using the new institutional economics institutional change theory,this part analyzes the differences between China and the United States and Britain in the IPO exit system.The fourth part is based on China's existing IPO exit legal mechanism,and combines with the advantages of British and American IPO exit legal mechanism to propose the suggestions on the legal system of China's private equity funds through IPO exit.