On The Protection Of Limited Partner Of Private Equity Funds

In recent years,with the rapid development of high-tech industry,the Private equity funds that provide financial support are also very rapid development momentum.Compared to company type and contract type,Limited partnership private equity fund organization structure is convenient and flexible,high operating efficiency,low operating costs and no need to double the tax burden.Therefore,the form of private equity funds in China will choose more limited partnership.However,as the general partner of limited partnership private equity fund managers for their own interests,there are many problems in the actual operation of management,such as financing money to vote for their own,false recommendation,registration is not clear.The rights and interests of the limited partner were lost.This paper tries to analyze the defects of the Limited Partnership Private Equity Fund in four aspects: the right mechanism,the restraint mechanism,the incentive mechanism and the responsibility mechanism.Expatiate the necessity of protecting the rights and interests of limited partners.Learn from the mature experience of foreign countries,suggestions are made in the above four aspects,in order to promote the protection of limited partner rights and interests.This paper consists of three parts: the first part discusses the development of private equity funds,and analysis of the structure of Limited Partnership Private Equity Fund,and puts forward the problems in the protection of limited partner rights in practice and extended analysis.The second part analyzes the defects of the Limited Partnership Private Equity Fund in the aspects of the right mechanism,restraint mechanism,incentive mechanism and responsibility mechanism,the rights and interests of limited partners cannot be guaranteed.The third part is based on the above analysis,put forward suggestions to protect the rights and interests of limited partners: perfecting the right system of limited partners,strengthen the restraint mechanism of general partners,optimal incentive mechanism,general partners assume unlimited liability,trying to establish a comprehensive system of protection of the rights and interests of limited partners.