Research On Financial Governance Of Private Equity Fund In China

A private equity fund is a securities investment fund that invests in a private way to a particular investor and invests in securities.With the rapid development of China’s economy,the domestic private equity industry has also been rapid development.However,due to the rapid development of private equity industry,and practitioners quality,industry regulatory system,the company’s management and other aspects of the development can not keep up,so in recent years,the private sector gradually appeared a lot of problems.The reasons include many aspects,in which the external regulatory mechanism is one aspect,but more prominent is the private equity fund financial governance problems.Financial governance is the core of corporate governance,financial management is a great extent to determine the survival and development of enterprises.Financial governance is a kind of financial system arrangement which achieves the balance of interests through the allocation of financial resources under the premise of corporate governance,and the financial relationship between the internal and external stakeholders is aimed at solving the problems of the various stakeholders.Conflict,optimize resource allocation and financial decision.In this paper,through the study of domestic and foreign private equity fund management and financial governance of the status quo,combined with the characteristics of domestic private equity funds and the use of practical cases of China’s private equity fund management of the three main problems:First,the financial relationship is not clear,The interests of private equity shareholders or management to maximize the interests of stakeholders to replace the interests of the company’s resources can not be effectively configured and the company’s operating efficiency and other issues;second risk control mechanism is not perfect,the current domestic private equity fund problems Such as the violation of laws and regulations,huge losses and the risk control mechanism is not sound;the last management team uneven distribution of benefits,many private equity funds due to the uneven distribution of management team led to dissipation,which the company’s development impact,nor Conducive to the interests ofinvestors.At the same time,this paper puts forward corresponding suggestions on the problems existing in the financial governance of private equity funds in China,including standardizing the qualification of private equity funds,clarifying the rights,responsibilities and interests of private equity investors and establishing effective supervision mechanism.Fund management team responsibility to allocate,strengthen the investment process management and private equity fund management team benefit distribution mechanism.The purpose is to explore the use of financial governance in China’s private equity funds,rational allocation of financial rights;coordination of stakeholders in the right,responsibility,and the relationship between the benefit.And strive to improve the financial governance mechanism of private equity funds in China and promote the healthy development of private equity fund industry.