The Research On The Legal Risk Prevention Of Private Equity Investment Fund In China

After decades of development in China,private equity investment funds(hereinafter referred to as “PE”)have continued to grow in scale,and their awareness and influence have also continued to increase.They have achieved a pivotal position in China‘s capital field and have contributed to social and economic progress.Development has also played an important role,which is manifested in the micro-function of strategic support and direct financing in the process of enterprise value appreciation;the macro role of rational allocation of social resources and the improvement of economic operation efficiency;the promotion of industrial structure optimization and the enhancement of financial service effects It plays an active role in improving the functions of the capital market and accelerating the construction of China’s multi-level capital market.It has played an important role in promoting China’s modern financial system and serving the high-quality development of the real economy.It has become a very important part of the current economy.However,due to its own non-publicity,long investment period and other characteristics,and the relatively late start from outside the region,the relevant legal supervision system and industry self-regulation rules are not perfect,making PE development increasingly difficult,the credibility of the industry has fallen sharply,and the industry Full of legal risks.Based on this background,it is very important to identify the legal risks existing in the industry and prevent them,and it is also critical to the healthy development of PE.Therefore,on the basis of legal risk,analyze the current legal risks and causes of PE in China,and propose solutions for the prevention of legal risks.In this context,identify the legal risks that are likely to occur in each stage of PE issuance,investment,post-investment management,and exit,and analyze their causes.After clarifying the causes of legal risks,first of all,through the improvement of relevant laws and regulations and the improvement of self-regulatory rules and other measures,the legal risks of PE are prevented at the system level.Then,from the perspective of the legal risk prevention and control of PE issuance,investment,post-investment management,and the withdrawal of various operational processes,design risk prevention strategies to make up for the lack of system prevention and control.Finally,it is concluded that the combination of system prevention and control and actual operation prevention and control is thebest mode of PE legal risk prevention.