Star Chen's Overseas Private Equity Investment Business Model Research

With the continuous development of global economic integration, the environment of financial market is getting more complex and the competition among financial institutions reveals more severe. As an exotic comer, Private Equity has been nation-widely concerned since the year of1985when it was input and is continually improved and developed. Currently the domestic economic circumstances are that economy continues to run high, corporate structure faces adjustment, upgrade and transition and that economic policies advocate to strongly expand and stimulate domestic demand and consumption. Therefore, it is becoming increasingly urgent and important for Private Equity in the post-financial crisis era to better serve the enterprise and promote development of financial markets.At present, Private Equity is facing the variation of demand in financial markets, Challenges in all aspects private equity has to confront with are not only from the capital raising and investment but also management and exit approaches. In order to learn from foreign private equity firm's business model and its advanced operation and management experience, to broaden the funding channels and sources, and to enhance the core competitiveness along with the company image, Star Company intends to cooperate with foreign Private Equity firms to better carry out investment business.This paper draws on domestic and international Private Equity firm's business models, especially analyzes those models Private Equity firms operated with around the year of2006when "Regulations for Merger with and Acquisition of Domestic Enterprises by Foreign Investors" was issued. As per the internal and external environment of Star Company, this thesis focuses on testifying and analyzing of business model as well as organization pattern in terms of cooperation with overseas Private Equity firms. The main conclusion is that non-corporate-type limited partnership or non-corporate-type Sino-foreign cooperative funds should be selected as organization pattern for Star Company to carry out cooperation activities with overseas Private Equity firms.This article also discusses, in order to cooperate well with Overseas Private Equity firms, the guiding ideology, basic operational strategies and business models, including the investment mechanism, the platform to be set up, fund raising, investment strategy and exit approaches, etc. Finally this paper puts forward measures and recommendations to ensure the implementation of the strategyThis article may provide domestic Private Equity firms with a certain reference and guidance on introduction of foreign Private Equity institutions and optimization of their own business model.