Real Estate Private Equity Fund Financing Mode Research Based On S Company

In 2007, American real estate sub-prime mortgage raised a global financial crisis and finally led to global economic fell into recession, then, the global financial crisis has thrown huge impact to Chinese economic especially the domestic real estate industry. Subsequently, Chinese government issued a series of policies and regulations to control macroeconomic and housing market, the domestic real estate developers generally encountered the housing sales dropping, development capital straining, and developer financing issue become more outstanding than before. In this context, to study real estate private equity fund financing mode is very significance to S company.Western researchers studied Modern Financing Theories system ranging over the MM theory, Trade-off Theory, Pecking Order Theory and Financial Growth Cycle Theory, also involved some primary theoretical standpoints summarizing from a mass of empirical results, they pointed out that the Modern Financial Theories offer theoretical foundation for enterprise to analyze the capital structure issues and the influence factors of financing decision-making from different aspects. But attention should be paid, although the important thoughts of Modern Financing Theories have been tested and verified for many years, however, due to the different financing environment, it is really not very suitable in developing countries. So, this paper considers impact factors of Chinese political system, economy running and market mechanism, etc. to study and find a more suitable financing mode for domestic real estate developers. Based on the Modern Financing Theories and empirical results from abroad and domestic, S company as the study body, this paper first analyzes the real estate business and financing situation, forward to discuss the existing problems and traces the origin reasons of the present financing mode, then this paper proves the optimum financing channel that introducing abroad private equity fund to settle the real estate financing issues of S company. The following to the core sections, after studied and compared with the strengths and weaknesses of company system, limited partnership system and trust system, this paper takes advantage of trust system and limited partnership system respective merits, based on which to focus on designing the Co-financing mode of Trust Fundraising & Limited Partnership Management, then this paper also draws up a set of the implementation keypoints and safeguards for the Co-financing Mode, considering from the aspects of operational framework, organization structure and some measures to deal with potential risks, this paper further proposes to set up the fund management team in limited partnership, constructs the matrix organization based on project teams and introduces flexibility management concept, stock options incentive plan and team double-reward incentive scheme and so forth, aiming to reach a optimal implement effect.This paper integrates Trust System and Limited Partnership System to design the Co-financing Mode of Trust Fundraising & Limited Partnership Management; this Co-financing Mode can fully utilize the strengths of the two organizations. On that basis, this paper further research on the operability of the Co-financing Mode, working out the implementation keypoints and safeguards, in which it formulates the more perfect operational framework, optimizes organization structure for project team and takes some positive steps coping with potential risks, to make the Co-financing Mode more practical. In this paper, studying and designing the real estate financing mode based on the related theories and case analysis, which provides the valuable reference for other real estate developers to expand direct financing channel and explore the private equity fund financing mode. In 2007, American real estate sub-prime mortgage raised a global financial crisis and finally led to global economic fell into recession, then, the global financial crisis has thrown huge impact to Chinese economic especially the domestic real estate industry. Subsequently, Chinese government issued a series of policies and regulations to control macroeconomic and housing market, the domestic real estate developers generally encountered the housing sales dropping, development capital straining, and developer financing issue become more outstanding than before. In this context, to study real estate private equity fund financing mode is very significance to S company.Western researchers studied Modern Financing Theories system ranging over the MM theory, Trade-off Theory, Pecking Order Theory and Financial Growth Cycle Theory, also involved some primary theoretical standpoints summarizing from a mass of empirical results, they pointed out that the Modern Financial Theories offer theoretical foundation for enterprise to analyze the capital structure issues and the influence factors of financing decision-making from different aspects. But attention should be paid, although the important thoughts of Modern Financing Theories have been tested and verified for many years, however, due to the different financing environment, it is really not very suitable in developing countries. So, this paper considers impact factors of Chinese political system, economy running and market mechanism, etc. to study and find a more suitable financing mode for domestic real estate developers. Based on the Modern Financing Theories and empirical results from abroad and domestic, S company as the study body, this paper first analyzes the real estate business and financing situation, forward to discuss the existing problems and traces the origin reasons of the present financing mode, then this paper proves the optimum financing channel that introducing abroad private equity fund to settle the real estate financing issues of S company. The following to the core sections, after studied and compared with the strengths and weaknesses of company system, limited partnership system and trust system, this paper takes advantage of trust system and limited partnership system respective merits, based on which to focus on designing the Co-financing mode of Trust Fundraising & Limited Partnership Management, then this paper also draws up a set of the implementation keypoints and safeguards for the Co-financing Mode, considering from the aspects of operational framework, organization structure and some measures to deal with potential risks, this paper further proposes to set up the fund management team in limited partnership, constructs the matrix organization based on project teams and introduces flexibility management concept, stock options incentive plan and team double-reward incentive scheme and so forth, aiming to reach a optimal implement effect.This paper integrates Trust System and Limited Partnership System to design the Co-financing Mode of Trust Fundraising & Limited Partnership Management; this Co-financing Mode can fully utilize the strengths of the two organizations. On that basis, this paper further research on the operability of the Co-financing Mode, working out the implementation keypoints and safeguards, in which it formulates the more perfect operational framework, optimizes organization structure for project team and takes some positive steps coping with potential risks, to make the Co-financing Mode more practical. In this paper, studying and designing the real estate financing mode based on the related theories and case analysis, which provides the valuable reference for other real estate developers to expand direct financing channel and explore the private equity fund financing mode.