Legal Research On The Exit Of Private Equity Funds Of China

Private equity fund,as an innovative investment and financing tool,was born in the United States in 1976,because of its remarkable effect,followed by the rise of the world.The emergence of private equity fund has brought new development hope for many small and medium-sized enterprises with financing demand in the market.Private equity fund not only invests in small and medium-sized enterprises,but also provides a series of value-added services for small and medium-sized enterprises,such as improving internal governance,expanding market channels,formulating development strategies,introducing high-end talents,etc.In the 1980s,private equity fund was introduced into our country as a new force,and the international private equity fund came into our country because of the influence of the international financial crisis in the 1990s.the domestic private equity fund also gained the opportunity of rapid development,which experienced from germination to slow development and adjustment to the perfect stage.Private equity fund plays an important role in the development of China's real economy,and exit is the most crucial link in the operation of private equity funds.The withdrawal from the huge income can enhance the investor active capital market confidence,and can give investors a larger income is also an important basis to evaluate the ability of private equity fund managers,and the smooth exit can in turn promote the smooth advancement of private equity fund industry.The exit mode of our country is similar to that of foreign developed capitalist countries,and it mainly adopts the first public offering,merger,stock repurchase and liquidation.At present,China has not promulgated the law specifically for private equity fund,the relevant behavior in practice is mainly restricted by the securities investment fund act,and the exit of private equity funds is not systematic,even if the relevant regulations are scattered in the company law,bankruptcy law,securities law and so on.But these laws did not take into account the particularity of private equity fund at the beginning of design,even some regulations are an obstacle to the exit of private equity funds.China needs to improve other department laws to promote the smooth progress of the industry,and the new private equity funds act can be enacted after the conditions are ripe.In the light of the legal system to improve the exit of private equity funds,form a complete system of withdrawal system.The author analyzes the legal problems of the private equity fund exiting in our country,by referring to the foreign legislative provisions,using the empirical analysis and comparative analysis,finally puts forward some own legislative proposals,so as to be beneficial for the perfection of the exit mode of private equity fund in our country.This paper is divided into four parts,the first part is the private equity fund and its exit,the second part is the legislative status of the exit of private equity funds and the legal problems.First,a brief list of the legal provisions of the first public listing,m&a,share repurchase and bankruptcy liquidation,followed by legal analysis of the legal obstacles to the four exit methods.The third part draws lessons from the American,British,german legislation and practice experience for our private equity funds.The last part,from the legislative improvement suggestions,with a view to promote the private equity investment in China.