Research On The Legal Problems Of Private Equity Fund In China

Private equity funds is so important that everyone in the market has to have a eyeon it. And it grows very fast in china. in recent years, due to the format along with avariety of social investment and development situation has its own characteristicadvantages of private equity funds has become an important force in the capitalmarkets and industrial investment, its size and some even began to develop into afterthe bank loan and the third largest IPO financing. Since1980, private equity fundsafter more than30years of development, the operation of private equity fundinvestments over time more and more mature can be said to contribute to aconsiderable force for China’s economic development. Throughout the internationalcommunity to improve the development of private equity funds in Europe andAmerica and other countries, by contrast you will find our private equity investment isstill in its infancy. As the private equity fund itself has a high risk and asymmetricinformation and other objective facts exist, and China’s relevant laws and regulationsare incomplete, so that private equity funds are still many problems in the legalpractice. There is a disconnect between the pace of development problems of privateequity investment funds and improve the speed of the relevant legal system.In this paper, on the one hand and learn about the private equity fund researchpredecessors, on the other hand, referring to the international advanced managementexperience and combined with China’s specific conditions, the status quo of China’soverall private equity funds analyzed, looking for loopholes and targeted constructivecomments.The whole thesis is divided into five parts: The first chapter introduces the basictheoretical research on a series of private equity funds development backgroundconcepts, classification, and related concepts such as the difference between lay thefoundation for the commencement of the full text, The second chapter is on thedevelopment status of private equity funds are described, on the one handmanagement experience from abroad such as the United States, Europe and Japan and other advanced countries, private equity funds, on the other hand combined with thespecific conditions of China’s private equity funds, avoid detours from thedevelopment process, from the operational processes, several angles operating profitmechanism, such as the development process as well as comparative analysis of thelegal environment has yet to explore the sound of the place of private equityfunds.Chapter III standing organization ’s point of view, one by analyzing theadvantages and disadvantages of a trust system, system and limited partnershipcompanies and their respective operating mode, by comparison to lookingdevelopment model for China’s private equity funds. So after two chapters set forthabove with respect to the operation of private equity funds in the core part of theprocess-the legal issues involved in the process of raising funds by one fourthchapter elaborated system. Analysis of legislation on the status of private equity fundraising target for the case, raising the way, raising the risk of conditions such asqualified investors, lack of legislative findings and propose how to avoid falling intothis category of illegal fund-raising topical issues in contrast to the process.The finalchapter of the imperfections on the development of China’s private equity investmentscarried out from the perspective of specific practice again from the perspective ofgovernment regulation analysis and put forward constructive suggestions.All in all, from the establishment of a fund to operate, from the legislative to theactual regulation, combining theory and practice, a combination of domestic andforeign, the inadequacies of our private equity funds found in as many aspects ofprivate equity funds to improve the legal system in particular regulatory regime, tocreate a favorable environment for the development of the future development ofChina’s private equity funds.