The Development Of Chinese Private Equity Funds Optimization Research

Private Equity Fund originated in the United States, which the earliest investmentactivities dated back to the late19thcentury and developed rapidly in global scope in the1980s.China private equity fund is in the form of venture capital in the early time and thedevelopment of PE has begun to take shape after more than ten years. The State Councilpromulgated Interim Measures on Venture Capital Management in2005, which it markedthat the development of PE has entered into the standardization. The introduction ofGEM in2009made so many private equity funds get huge income through this exitchannel. PE shows a momentum of rapid development.The paper firstly started from the content, characteristics, types, operational processeswith the theory of private equity fund and initially described the overall profile of privateequity fund. After that, we compared and analyzed the development of PE in the UnitedStates, Britain, Japan and other mature market countries. Then we sorted out andsummed the China PE’s overall status and development of major cities. And put forwardprivate equity funds’ issues to be addressed during the specific operation. According toPE’s development of data, we studied the effects of PE scale of the economic variablesfrom the macro level and analyzed PE’s impact for small and medium enterprises valueand performance from the micro level. On this basis, we summed up the strategy aboutChina’s development of private equity fund and made to the optimal road of PE’sdevelopment in China.The result shows that the private equity fund’s scale is positively sensitive todevelopment degree of stock market, especially the Small and Medium-sized Plates, andnot sensitive to GDP and interest rate. At the same time, the private equity investment hasa positive impact on the value and operating performance of small and mediumenterprises. China private equity fund has made great progress since its inception and hada huge potential and broad prospect in the future. However, we still need to furtherstrengthen and improve in the following areas: market construction, laws and regulations,monitoring and exit mechanisms, professional investment management personnel,organizational forms, fostering innovational culture ect. Finally, it will make the optimaldevelopment of PE in China.