A Comparative Study Of The Qualified Investors System Of Private Equity

Private equity funds(PE Funds)have become the main methods for enterprises of small and medium to raise money.PE business booms recently.The public interest is not involved in PE.In general,the regulation and supervision of PE industry is not strong around the world.Information asymmetry between investors and issuer,and less transparency in operations of PE lead to high risk.Thus it is not suitable for massive investor to purchase PE.The qualified investors system emerges in response to the needs of times.The qualified investors system is important to protect investors and improve the efficiency of capitalization.But in practice,the scope of qualified investors and investor’s number of such system are too stringent,so it’s difficult for the fund sponsor to raise money.On the other hand,the method of risk assessment is too simple and the verification system of qualified investors underInternet promotion is absent.It leads investors to face enormous risks.This paper focus on the qualified investors system of PE Funds.This paper analyzes the main foreign qualified investors system and the qualified investors system of Britain and America are selected as two typical system.The regulation mode,specific qualification and the verification system of qualified investors under Internet promotion are comparatively analyzed.So as to facilitate the financing and investor protection as a starting point,I will put forward some advice to improve the qualified investors of PE Funds.