Research On China's Private Equity Exit Mode

With the gradual improvement of China's capital market system,a large number of high-tech enterprises and the Internet and other development potential of small and medium enterprises in the private equity market have got financial support,meanwhile,private equity funds is developed rapidly.Appropriate exit methods are important for the realization of investment income and the reduction of investment losses of private equity funds,which also play an important role in promoting the overall development and sustainable operation of the private equity fund industry.At present,the method of private equity funds exit is divided into five categories,initial public offerings(IPO),mergers and acquisitions,equity transfer,equity repurchase and liquidation.According to the statistics of the private sector database,from 2000 to the end of June 2017,a total of 9444 cases present private equity funds withdrawal in China,the average exit period is 3.22 years,the average return is 7.53 times.Among them,the exit of IPO was the largest,accounting for 43.81%of the total withdrawal.In foreign countries,the withdrawal of private equity funds was mainly based on mergers and acquisitions and equity transfer.This paper specifies five ways of exit mode of private equity funds,analyzes and compares the advantages and disadvantages of the five exit modes,and analyzes the current problems of the withdrawal of private equity funds,combined with China's capital market situation.Based on the Logit model,this paper analyzes the factors that affect the decision-making of private equity funds from the aspects of the nature of private equity funds and the characteristics of investment events.Based on the private equity fund project data disclosed in 2012-2016,the current situation and shortcomings of the fund,put forward to improve China's multi-level capital market system,improve the regulatory system and property rights trading market,strengthen the training of personnel recommendations to promote the healthy development of China's private equity fund industry.