Study On The Development Path Of Private Equity Investments

Private Equity is an asset class consisting of equity securities in operating companies that are usually not publicly traded on a stock exchange. The investment scope of Private Equity covers the initial, developing and advanced stage of a company. Private Equity is the product of advanced development of market economy. On the one hand, Private Equity can meet the financial need of companies which are in rapid development. On the other hand, Private Equity could integrate resources and optimize the allocation of resources through capital operations such as merger and acquisition. The practices show that Private Equity is increasingly playing an important role in technique innovation and globalization all over the world.The article includes the concept, feature, type and operating mechanism of Private Equity. According to the practices and developments at home and abroad, the article further analyzes the development path of Private Equity which aims to provide some theoretical references for the development of Private Equity investments in China.The main contents include:1. The concept of Private Equity according to the lately development of Private Equity.2. The features, type and operating mechanism of Private Equity.3. The practices of Private Equity at home and abroad.4. The problems and risks of Private Equity in China.5. The development path of Private Equity in China.The main conclusions and suggestions of the study are:1. Limited liability partnership will be the primary organizational form of Private Equity in China.2. Diversified institutional investors will promote the development of Private Equity.3. Establishing capital market of multiple levels to perfect the quit mechanism.4. Further improve the law and regulations of Private Equity. The innovations of the article are:1. The research is based on the lately "Law of the People's Republic of China on Partnerships".2. Considering the "Growth Enterprise Board" will be launched this year, the article highlights the quit mechanism of Private Equity3. Incorporate PIPE into the scope of PE according to the lately development of Private Equity investments.4. Systematically analyze the concept, type and operating mechanism. Research the development path of Private Equity investments according the practices of China.