Study On The Current Situation And Effects Of Private Equity Funds

As a kind of financial innovation,private equity funds invest in the equity of non-listed companies.Private equity funds emerged in the late 19 th century and the early 20 th century in the United States and has entered a new stage until the 1980 s.In recent years,the development of China’s private equity funds is rapid.It opens up the financing channelis for non-listed companies which is different from the bank,as well as provides a platform for private equity funds. For the study of private equity investment effect,this paper reviews research actuality of the domestic and abroad on private equity funds.Then on the basis of relevant theories,combining the current situation of the development of private equity funds in our country,studying the effect of China’s private equity funds not only on micro and macro economy but also on themselves.Research on microscopic effect concluded that private equity funds helps to broaden the financing channels of small and medium-sized enterprises in our country,to pull the business performance,but the effect on the enterprises’ governance structure is not obvious. In terms of macroscopic effect,private equity funds can promote China’s science and technology innovation and resource configuration optimization.Private equity funds can make a contribution to achieve the balanced development of regional economy and adjust industrial structure.Private equity funds also play an important role in building multi-level capital market of our country.In addition,this paper make a research on the private equity funds returns by combining with two withdrawing of China’s private equity funds----IPO and M&A.Finally we put forward some suggestions on further developing private equity funds.