Chinese Private Equity Fund Development Theory, Risk Control And Foresight

Chinese Private Equity Fund experienced a development from nothing to mature withthe rapid development of socialist market economy in China. According to the investigateof China Venture Capital Research Institute, by the end of the second season in2009, thenumber of Entrepreneurial Venture Capital Institutions that registered in NationalDevelopment and Reform Commission had reached to more than400. Although PrivateEquity Fund of our country has made tremendous progress, it still remains primary stagecompared with international Private Equity Found. It is the conservative concepts innormalizing Private Equity Fund that severely influenced its healthy development. TheChinese style of Private Equity Fund desperately needs to accelerate efforts to upgradeindustrial structure and build innovation-oriented country in the current economic shuntprogress. From the precious experience of the west, Private Equity Fund has become the mostimportant financing channel, second only to bank loan and IPO. Our academic circle remainsunclear about the position, governance mechanism, external supporting environment, businessmodel, organization form and regulation model. Therefore, our Private Equity Fund accountsfor a low proportion in the overall financial structure. Based on the above statements, theresearch on development of Private Equity Fund has great theoretical and realisticsignificance.The thesis centers on the development of Private Equity Fund and systemically analysesthe conception, content, operating procedures, risk management and forward-looking issuesof Private Equity Fund. Moreover, I proposed constructive suggestions to the forwardobstacles in Private Equity Fund development. The thesis is divided into four parts. Part Oneis the outline of Private Equity Fund, which focuses on business scope and organizationmodel. Part Two is comparison of Sino-foreign development of Private Equity Fund andexperiences and reference. I analyzed the disparity between local operation and developedcountries through international experiences and related data. Part Three is the riskmanagement and prevention of Private Equity Fund. I exampled corresponding preventingmeasures to resolve seven risks. What is important is not only the current and afterwardsmanagements but also the early waning to issues. Part Four is the prospect of Chinese PrivateEquity Fund. I stated the current situation of Chinese Private Equity Fund including position,internal controlling mechanism and external environment building, etc.