On The Operating Mechanism Of Chinese Private Equity Fund

Private equity investment fund is a new form of financial innovation, the inextricable relationship with the development of the capital globalization. Private equity investment fund promotes China’s industrial structure adjustment, and able to play a certain role in the optimization and management of Chinese enterprises in the structure of the company, and can expand the financing channels for enterprises in China. In some very high degree of market of the developed countries, the development of the private equity investment fund’s advantages,not only those listed above. Along with China’s rapid economic growth and the development of enterprises, which need a higher level of demand in China’s capital market.This article objectively analysis the problems of the private equity funds operating mechanism, using the analysis method synthesis of specific analysis. Firstly, the background of this study and the research significance are introduced; Secondly, to analyze the research status of private equity investment fund operation mechanism, and introduces the concept of private equity funds, and private equity investment fund operation mechanism described also introduced the commissioned agents, adverse selection and moral hazard theory; from these four aspects of the organizational mechanisms, funding mechanisms, investment mechanism and exit mechanism analysis using a combination of research methods of synthesis and specific analysis of existing problems and put forward for proposals and measures; Finally, the summary of this full text. Private equity investment fund operation mechanism, it is possible to provide some reference for China’s domestic private equity funds in the construction and improvement of the operating mechanism for China’s private equity funds, but also to give the competitiveness with some suggestions.