Research On Legal Issues Of Pledge Financing Of Private Equity Fund Share

According to the latest data from the China Fund Association,by the end of January 2018,China had registered 69086 private equity funds,and the scale of managed funds reached 11.76 trillion yuan.Among them,there are 13,531 private equity and venture capital fund managers,27,447 operating funds,and a total of 7.09 trillion managed funds;the size of private equity investment funds is 2.61 trillion yuan.From the perspective of the size of the financial market managed operating fund,the private equity fund market in China is mainly based on private equity investment funds,and has a strong momentum of development.At present,the lack of relevant legal provisions for the private equity fund share pledge in China makes it face various difficulties in the process of pledge.In this respect,the author first proposed legal issues that may arise in the financing of private equity fund share pledges,then used comparative analysis methods,and finally put forward related recommendations.Following the above research ideas,this article consists of four chapters:The chapter 1 introduces related concepts involved in private equity fund share pledges,such as Privately Offered Funds and private equity funds,private equity funds and private equity fund shares,and discusses through the pledge of private equity fund shares,explains the connotation of the private equity fund share pledge deeply.Finally,the relevant laws and regulations of China's current private equity fund share pledge are combed and summarized.The chapter 2 is the key chapters of the article and proposes the legal issues in the process of the current share of China's private equity funds in the process of pledge,including the following aspects: First,the effectiveness of the private equity fund share pledge and publicity issues,the existence of relevant publicity agencies' buck-passing;Second,there are cases where the private equity fund shares are pledged with two or more entities intertwined,so it is necessary to clarify the rights and obligations of related parties;Third,because the private equity funds are not open to the public,the rules for determining the share's value of private equity funds are not clear during pledge;Fourth,if the duration of the private equity fund is shorter than the pledge period,how to protect the rights of the creditor is not clearly stipulated in the legislation;Fifth,there is the analysis of the repeated pledge of the private equity fund share.The chapter 3 discusses the related systems and legislation of the developed countries of theUnited States,Germany,and Japan in the private equity fund.Based on the actual situation in China,this chapter draws lessons from the relevant ideas and practices that will help promote the development of China's private equity fund share pledge.Chapter 4 addresses the issues raised in Chapter 2 and the related foreign legislation in Chapter 3,and proposes the legislative proposals for the share pledge of private equity funds in China,that mainly focuses on legislation,information disclosure,and the right of pledge warranty.