Strategies On Exit Mechanisms Of International Private Equity Investment

The essence of international private equity is to input venture and produce mature companies.The exit of international private equity is the process and behavior of selling its mature companies,which is the most important aspect of the whole process.Successful exit is related to whether the original investment could be realized,and the persistence of further investment and fund.Firstly,this paper introduces the concept of the international private equity investment,history and current situation of this industry in the world,the main ways of exit mechanism on private equity investment,and the compare on the exit mechanisms around world.Secondly,the article further describes the concept and working flow of international private equity investment through the case of Blackstone Group exiting from Freescale Semiconductor with IPO and M&A,especially its successful experience for China.Thirdly,the paper builds a model on exit of private equity,analyzes the principle of chances choosing based on maximizing the revenue,and particularly analyzes the effect on the choices of ways of exit with the angle of corporate governance.In conclusion,from the practical point of view,any country or region expresses its preference for some way of exit in the exact time,and different ways of exit are still in the state of coexistence.So there is not the absolute good way of exit,for the purpose of achieving the maximum avenue,private equity should decide the ways of exit according to its own characteristics and the macro-economic environment.