The Correlation Analysis Between The Governance Structure And Drive Mechanism Of China Private Equity Fund And Fund Performance

Since the year of 2010,the private equity investment in China has grown more rapidly,the PE funds boomed up overnight.Foreign venture PE funds,state-owned VC funds,mixed venture private equity funds,big funds as well as middle and small funds emerged suddenly.However,the governance structure and drive mechanism of all these funds seemed all different.The disparity between the governance structure and drive mechanism of private equity funds would give a rise to different fund performance and return on investments.Some funds have more marketized management and incentive compensation,while some funds have rather heavy problems of information asymmetry and agency conflicts.This dissertation attempts to make a specific analysis of the correlation between the governance structures and drive mechanism of China private equity fund and fund performance.The valuation on the performance of the sample funds of different types is based on the professional research data.We conclude a logic relation of both sides through the comparison between the disparity of the governance structure and drive mechanism of the sample funds and the difference of the fund performance and return on investment.The dissertation is committed to give a further solution to the agency problems between LPs and GPs in private equity funds,and give a constructive suggestion on fund governance and incentive mechanism.The contribution of the dissertation is that we make a general summary of the private equity funds of different types in China,and give a specific data comparison of the sample funds,and then we find the inner logic and linear relation of both sides from our analysis.It puts forwards an open constructive opinion to fund governance and incentive mechanism of private equity funds in China.