A Study On The Exit Mode Of Private Equity Fund M&A In China

This paper is proposed in the context of the continuous development of China's financial market,the continuous improvement of multi-level capital markets,and the increasing number of private equity funds.However,compared with the developed capital markets,the exit of China's private equity investment funds is lagging behind and lack of talents.The policy support is not in place,etc.This paper puts forward personal opinions and case enlightenment on the basis of specific case analysis,and provides reference measures for the development of China's private equity fund exit channels.The research of this paper follows the frame system of finding,analyzing and solving problems.First is to find out the problems: in recent years,under the leadership of the Chinese government,a multi-level capital market has gradually formed,including the main board,the small and medium-sized board,the growth enterprise board and the new three boards.However,the role of each board has not been fully and reasonably played,coupled with the imperfection of some laws and regulations,resulting in too single exit mode,long-term IPO exit in the main position,and exit earnings in As China's economic situation declines in recent years,the attraction of IPO is also gradually declining.Finding suitable exit channels has become an urgent problem for private equity investment institutions.Secondly,it analyses the number and performance of several exit modes of private equity investment institutions in China in recent years,and chooses a typical case-Shenghe Resources Merger and Acquisition of Chenguang Rare Earths,three private equity(Hongshi Venture Capital,Weichuang Fortune,Shengqian Fund)to realize the benefits of exit.Chenguang Rare Earth eventually went public through M&A after experiencing IPO failure and two backdoor listings failure.The three private equity funds also benefited from M&A exit.Finally,to solve the problem:in view of the case and the problems existing in the exit of private equity funds in China,constructive suggestions are put forward at the two levels of the state and private equity institutions.The main countermeasures are to build a perfect M&A market,implement preferential policies such as tax reduction for the parties involved in M&A and withdrawal from the affiliated parties.Private equity institutions should also actively change their thinking and take the initiative to match up.Trade and so on.This paper concludes that M&A exit has the advantages of high return,flexible exit mode,simple price determination,low risk,and one-off withdrawal of funds compared with other exit modes of private equity funds.It should be the key exit mode of private equity funds in China.