A Study On Exit Strategy Of Private Equity Fund In China

With the rapid growth of China's economy, China has become Asia's most active private equity market. Private equity fund is an important tool to solve the financing problem of SME and optimize resource allocation of the capital market. Financing, investments and exit are three essential phases in the operation of private equity fund. The problem of any phase will affect private equity fund's normal operations. Private equity fund aims to profit, so exit strategy is essential in its operation. A reasonable exit strategy can guarantee huge profits and good fluidity.The paper shows the best exit strategies in different circumstances by comparing exit modes and exit times, and demonstrates the real effectiveness of the strategies through a case. This paper mainly consists of six parts:the first chapter explains the background and significance of selecting the subject and makes a simple review about the theories and research findings internal and abroad to provides valuable reference for in-depth study; the second chapter introduces the general theory of private equity fund, including private equity fund concept, development, operation mode etc, to lay the foundation for further research; the third chapter discusses systematically and comprehensively on the private equity investment fund exit mechanism. This chapter compares the exit modes and the exit times from the macro level, researches on the differences of exit mechanism between US and China, and makes an in-depth research on the relevant markets and systems. Chapter four researches problems on the micro-level, mainly against the macro-problems above proposes the decision making to formulate the exit strategy. In this chapter I classify the private equity investment fund exit into four situations and give the recommendations to every situation. Chapter five analyzes the problems in the actual case IDG Exit From Tencent, solve the problems in the case using the exit strategy summarized in the section above. Finally, concluding the problems and strategies of private equity fund exit in the hope of providing the practical help to private equity funds.