On The Protection Of Limited Partnership PE’s Investors：from The Perspective Of Asymmetric Information

Limited partnership is the mostly preferred organization by investorsin the international private equity (PE) investment fund market attributed tothe high efficiency and flexibility of its internal impelling-bindingmechanism as well as the tax advantages. Take the U.S. for instance, whichhas the most developed venture capital industry, above80%of privateequity funds are limited partnerships. In the Chinese domestic PE market,though the company type is the mainstream model, the limited partnershipis gaining more and more favors by investors sharply since it was legallyestablished by the revised “Partnership Enterprise Law” in2007andenabled to open securities accounts by the revised “Measures for theAdministration of Securities Registration and Clearing” in2009.Though limited partnership has the incomparable superiorities to thecompany and trust type in terms of threshold for market entry, tax costs,risk control, capital use efficiency and etc., considering the intensity ofsupervision and the costs of asymmetric information, the protection of theinterest of limited partnership PEs’ investors deserves more concern. Theabsence of the credit system would result in the problems of adverseselection and mistrust and nonconfidence between investors and fundmangers, which leads to investors’ excessive self-protection as thebenachteiligte in practice to improperly intervene fund mangers whileexecuting partnership affairs. This dissertation mainly tempts to deal withthe reasonable protection of the investors as the benachteiligte. Firstly,clearing the obstacles of organizational law to ensure the limited partners’rights of involving in the investment resolution-marking proceduresproperly; then, regulating the thresholds of the fund managers to diminish the alternative costs and strengthen the investors’ confidence in fundmanager’s professional competency; finally, establishingself-discipline-driven governing system, making the national industrialassociation undertake the responsibilities of setting up the uniformed andgenerally recognized credit system of PE market as the signaling modelbetween the investors and fund managers in order to optimize the operationmechanism under the background of asymmetric information and make theconjunction of limited partnership and PE reach the optimal status.