Research On The Organization Form Of Private Equity Investment Funds

Ever since the21th century, on account of the disillusion of the conventionalrecovery prediction after global economic crisis, the advanced economy plates havehad three consecutive years of slowly increase. At the meantime, at the request ofmacroeconomic regulation and control, the parts in the financial market which areeasy to adjust have had been comprehensively used and various banking institutionsthrough the capital exchange channels of guarantees and other market creditenhancement methods have had been partially or mostly blocked. Under thecircumstances, the regular financing channels were the first to contract, thus theprivate equity investment fund developed and accelerated continuously and becamethe main financial means which rank the next only to bank lending and initial publicoffering (IPO). The private equity fund officially appeared in our country from lastcentury, however, due to the policy and environmental restrictions at that time, it didnot make a big development. Currently, the development scale of the private equityfund in our country is expanding continuously and becoming the main financialmethod for the small and medium-sized hi-tech industry.The private equity investment fund is to raise the funds from institutionalinvestors and individuals through non-public offering and then to make equityinvestment into the non-listed enterprises; it is also a investment method through theprofessionally management on the funds by the fund managers so as to help theinvestors to realize the value increase of the funds, share the income from investmentas per the contribution of the funds, and take the responsibilities of the investmentrisks. The private equity investment fund has three kinds of organization forms: limited partnership system, corporation system and indenture system. The thesis is, onthe basis of the private equity investment fund’s definition and status quo, to make abest choice on the private equity investment fund organization form of our country bycomparing and analyzing these three kinds of organization forms. As to the privateequity investment fund, there still exist lots of flaws and weaknesses in the laws ofour country; thus, the thesis is going to raise some suggestions in order to perfect thelegislations about the private equity investment fund in limited partnership system byusing the experiences of the related laws in USA for reference.Based on the abovementioned, the thesis is divided into four chapters. ChapterOne starts with the definition of the private equity fund to compare and discriminatethe features and concepts thereof, to study and analyze the development and statusquo of the private equity investment fund at home and abroad, and also to make aprobing analysis of the involved department laws in the legal system of the privateequity investment funds in our country at the meantime. Chapter Two focuses on thethree kinds of organization form of private equity investment funds which arerelatively mature now over the world. It elaborates separately from the aspects ofestablishment requirements, legal organization structure, etc., and also compares andanalyzes the three kinds of organization form of the private equity investment fundsfrom the aspects of legal status, requirements of capital contribution, revenuedistribution, rights supervision, tax revenue and withdrawal mechanism bycomparative analysis method, so as to draw forth Chapter Three of the advantage oflimited partnership system among the three kinds of organization form, including itsfacility to legally fund-raising and withdrawal mechanism, avoidance of doubletaxation and effective restriction mechanism, etc. It can lead to a conclusion that nowlimited partnership system is the relatively suitable organization form of privateequity investment funds in our country, and also analyzes in depth the defects existedin the limited partnership system of private equity investment funds in our country atpresent. The last part contrasts and learns from Uniform Limited Partnership Act(2001) of USA which gives rough suggestions to perfect the legislation over thelimited partnership system of private equity investment funds in our country.