Research On The Strategies Of Risk Prevention Towards Domestic Private Equity Fund

Benefiting from national policies and better environment of capital market,domestic industry of private equity fund has become the vital part of financial market considering its backward beginning.With good prospect expected,private equity fund are facing possible risks in the whole process of operating.Domestic research on private equity fund falling behind still,this thesis of vital importance roundly.This thesis adopts the methods of both qualitative analysis and case analysis,based on the investigating program of private equity fund A,to discuss main risk and according strategies.Firstly,taking abroad theory about private equity into consideration,this thesis introduces and analyses current domestic situation from aspects of market scale,currency of funding,structure of funding root,domain of investigation and situation of exits.It is found that there exist some problems like incomplete supervision system,invalid risk management and heavy reliance on IPO for exiting and so on.The thesis concludes the source of risks into asymmetry of information,principal-agent relation and external supervision model.Secondly,based on the investigating program of private equity fund A,this thesis analyzes the main risks and brings up with strategies.Taking the example of some private equity fund A which is suspected of absorbing public deposit,the thesis indicates to lead the correct way of investigation and funding.Finally,the thesis comes up with strategies for risk prevention.The thesis brings up following 3 strategies:1.As for manager,complete risk controlling system should be established and proper way of fund exiting should be designed.2.As for fund investors,they need to choose trustworthy manager and adopt according motivating and constraining system,and supervision of necessity is also expected.3.As for government,comprehensive governmental supervision system should be established and performed well.