Chinese Practice&international Comparison Of Private Equity Funds

Since 1960s Private Equity market has been developing rapidly all over the world. In recent years, with more attention being drawn to China, International PE has also found its way to China's market. In the meantime, local PE has been flourishing as well, which brought an upsurge of PE's investment. P E has great effect on promoting upgrade of the industrial structure, cultivating multi-level capital market, optimizing the company management structure and enhancing development of small and medium enterprises along with new- and-high technologies.The purpose of this research is to summarize the characteristics of Chinese PE and make comparison with international PE, using analysis tools such as case study and sample analysis on the Shenzhen Stock Exchange GEM (Growth Enterprise Market).This article firstly began with a brief introduction regarding to PE. Then the history of international and domestic PE markets was respectively mentioned. Afterwards through the case study on domestic PE, five characteristics– fund management, fund investor, investment feature, management after investment and fund withdraw– were elicited, along with the initial international comparison. In the followings, through sample analysis of 195 investment cases random selected from 86 listed companies which are listed in the Shenzhen Stock Exchange GEM and involve the Private Equity Investment, investigation was conducted by categories based on the related data. Those characteristics of EPI which successfully pull back by IPO way were concluded in 4 aspects as investment organization, enterprise invested, investment role and investment profit. In addition, some other conclusions of international comparison were obtained. At last, constructive and innovative suggestions of development of PE were given based on the conclusions of case study and sample analysis.