Case Study On Exit Route For Private Equity Investment Fund

With the continuous development and transformation of China's economy,there are more diversified investment tools in the capital market.Private equity investment fund is one of them.The operation process of private equity investment fund includes four links: fundraising,investment,management and exit.Exit is the most important link in the operation process of private equity funds.Only if exit is realized successfully,private equity investment funds can obtain actual income,improve the reputation of private equity institutions,enhance the ability of continuous fund-raising,better launch the next round of investment,and achieve sustainable and healthy development.Private equity investment fund started late in China,and the research on it in domestic academic circle is later than that in foreign countries,and the research mainly focuses on investment link,current environmental risk,system defects and so on,while the research on exit link is less;the research on exit link mostly focuses on IPO Exit,and the research on merger exit and other ways is less.In this paper,combined with the actual cases,the exit decision of private equity investment funds in China is studied in depth,which provides a new direction and new ideas for the managers of private equity funds in China.First of all,through literature review and theoretical review,this paper expounds the existing research on private fund exit mode and influencing factors,and then makes clear that the influencing factors of private fund exit should be analyzed from the perspective of private institutions,invested enterprises,macro market environment,etc.Secondly,it discusses the concepts,definitions and related theories involved in the selection of private equity investment funds and exit ways,and further compares and analyzes the advantages and disadvantages of different exit ways according to the current development situation of the capital market and private equity industry.Then use the case analysis method to analyze the case of CSTC exiting NBC,compare the time point,exit way and exit income of the three exits,and analyze the optimal solution of exit under the current market environment.Finally,the paper summarizes the whole paper and draws the following conclusions:In the current market environment,IPO Exit is still the most profitable exit way,but the number of IPOs through is far from meeting the market demand,and the cost of IPO is high.This paper is actually looking for an alternative for IPO Exit.From the perspective of exit plan design,M&A exit is more reasonable and feasible than IPO Exit in the current market economy environment.From the perspective of IPO alternatives,M&A exit is more feasible than the new third board exit in market opportunities.From the perspective of cost and income,the exit cost of M&A is smaller and the income is higher.Therefore,M&A exit has the opportunity to become a new mainstream exit way.