The Research On The Strategies Of Private Equity Investment Related Participation Subject

PE is short for Private equity in English.The practical experience in developed country proved that private equity funds,as a product of the combination of financial innovation and industrial innovation,can be used as important tool to provide a valuable capital for those emerging companies and their sustainable development,spawn new industries,accelerate the upgrade of industrial structure and consumption level,and create more employment opportunities.In the background of China's "mass entrepreneurship and innovation",private equity is an important part of the multi-level financial market system,and it is the key to solve the financing difficulties for SMEs.What's more,PE will be a strong driving force of entrepreneurial innovation and upgrading of industrial structure.In 2010,China's equity investment market shows an explosive growth,and vitality of the private equity institutions reached a peak.Under the influence of China's flourishing capital market,the total amount of PE in the first quarter of 2016 reached 146 billion 630 million yuan,increased 4.9%,compared with a year earlier.120 billion 720 million yuan has already been invested,increased 46.9% from a year earlier,a great continuation of the pomp in 2015.Based on this background,this paper uses the game theory and case application and other related research tools to set variables,assumptions and establish the game model for the investment of private equity funds in China's financial markets.This paper discusses strategies of the related participants in PE,from the two perspectives of transaction structure and government regulation.Firstly,this paper briefly introduces the research background,research significance and research methods.After a brief overview of the related concepts of private equity investment funds and related research theory,the paper presents the accomplishment of domestic and foreign research results on private equity investment funds and participation strategy.Based on these basic theories,the second part of the paper will discuss about the game model between private equity investment funds and financing companies,as well as the game model between government regulators and private equity investment funds.Then by analyzing the current situation of o private equity investment funds used in China and some related cases,the paper will elaborate the significance of staged financing strategy,incentive mechanism,internal control and the signing the VAM(Valuation Adjustment Mechanism),For investment and financing sides provided three effective trading strategy,from the perspective of transaction structure.Last,the paper will give some suggestions on establishing and improving the related laws and regulations,moderating the supervision,and strengthening the industry self-regulation.Provide effective theoretical support for industry regulation.