Research On The Reason And Profit Balance Of The Emerging Of Co-GP Fund In China

In the recent credit ecology,listed company and local government are two credit highlands and best financing sources of fund as well as bases for acquiring other supporting resources.The powerful LP from governmental financial platform with capital and industry resources is no longer satisfied with participating in the fund as LP.They prefer to participate in the daily operation management and investment decision of the fund.Besides,as the intrinsic structural problem in limited partnership,entrusted agency issue between GP and LP,the powerful LP has the impetus to structurally solve the problem.Based on the above reasons,more and more powerful LPs transfer their identity and become GPs of the funds they participate and implement the management and control of the limited partnership in the form of co-GP with professional investment agency GP.But the co-GP frame is not popular in Europe and the US which might be relative to China's economic social environment and law.It could be considered as a combine of limited partnership coming from the west countries and China's local wisdom.Only after we are clear of the emerging reasons of co-GP fund,are we able to better analyze the problem and profit balance in the context of operation in China and better offer advice in precise.This essay analyzes the source of co-GP limited partnership fund in China and its problems.As this frame is rather new,there are not enough relative cases,researches and discussions to refer to,which caused the practice to be prior to theory.I hope this essay would be a sound exploration to offer some reference to the organizations who plan to adopt this frame through the description and analyze of the coGP limited partnership fund and advices on the core article of the detailed contracts.