Research On M&A Exit Mechanism Of Private Equity Investment Funds

Private equity investment funds are the product of financial innovation in the capital market and have become one of the important financing methods in the capital market.The development of private equity funds in China has not been long,but it has greatly promoted the development of domestic capital markets.At present,private equity investment funds are in the process of adjustment in China.With the introduction of a series of policies and the continuous improvement of legislation,the development prospects will be infinitely broad.According to the market operation practice and academic views,private equity investment funds can be divided into four operational aspects: recruitment,investment,management and exit.The exit link is the core link and key step of private equity investment funds.Due to its unique advantages,the M&A exit mechanism has become a more enthusiastic choice for managers and investors in the exit mechanism of domestic private equity investment funds.This article is divided into seven parts: the first part,as the introduction part of the article,mainly clarifies the research background and significance of this paper,the writing method of this paper and the advantages and disadvantages of this paper;the second part elaborates the related concepts of the M&A exit mechanism of private equity investment funds,which can be summarized as an operation mode of raising funds through non-public means,investing in equity,and withdrawing profits through M&A mechanism;The third part discusses and summarizes the legislation status of the withdrawal mechanism of M&A of private equity investment funds in China and the United States,and analyzes the relevant laws and regulations of domestic M&A system and the existing special legislation in the United States;the fourth part analyzes the development status and trends of the M&A exit mechanism of private equity investment funds through the existing market data;the fifth part analyzes the legislative defects of the M&A exit mechanism of private equity investment funds,and proposes the lack of unified merger and acquisition regulations,restrictive clauses,and the legislative defects of the property rights trading system to be improved;the sixth part,combined with the legislative defects of the fourth part,corresponds to the improvement measures of the merger and withdrawal mechanism of private equity investment funds;the seventh part is a summary of the full text: China's legislation on private equity investment funds still needs to be improved,and there are a lot of irregularities in the withdrawal mechanism.On the basis of focusing on the analysis of the withdrawal mechanism of private equity investment funds merger and acquisition,this paper proposes the improvement strategy suitable for China based on the market development status.