A Study On The Withdrawal Way Of China's Private Equity Fund

This thesis focused on the exit mode of private equity fund by discussing its operation ways and organizational form.Firstly,the author summarized and analyzed macro and micro factors which would affect a successful fund exit.Secondly,the author compared four exit modes of private equity fund by discussing their pros and cons and addressed two typical exit modes(IPO and M&A)in China in detail with case study.The author also investigated a new PE fund exit mode in Chinese Third Market based on the market's current situation.Finally,the author offered several practical advice and solutions to problems existing in the 2016 China private equity industry.This thesis draws the following conclusions: The macroeconomic factors affecting a successful exit include business cycle,capital market conditions and laws and regulations,while microeconomic factors contains the status of invested entities,private equity fund's own preferences and the exit costs.At present,China's IPO ratio is comparably high and M&A should take a bigger part as the exit mode in the future.There are investment potentials in Chinese Third Market and thus is good for private equity fund.Problems existing in China's private equity fund industry include: single exit mode,hard time for IPO,M&A and equity transfer barriers,The New Three Board's defects and the lack of secondary market.In the future,China should set up a multi-level capital market,improve laws and regulations of the exit mode of private equity funds,strengthen the market supervision system,open up PE secondary fund market and train high-quality institutions and investment team.