A Study On The Legal Issues Of Private Equity Investment Agreement In China

Private equity,as an investment method,is turning into more and more prosper,and creating the wealth myth one after another in the capital market with its unique characteristics.According to the latest Global Private Equity Market Report 2019 from Bain cooperation,global private equity investment fund rose again in 2018.Reviewed in the past five years,the total global private equity deals has been disclosed at $2.5 trillion.However,in China,private equity investment fund is an "exotic product",it only emerged for a few decades,although it provided impetus for the developing of medium-small enterprises in China,there are still many issues has to be solved for private equity investment.In the process of investment,the investment agreement as an important stipulation for the rights and obligations of both parties,directly determined the subsequent operation management and investment interests.Lacking of the practice experience and short development period,the investment agreement in china often used the fixed clauses and model from the United States.Such clauses are often not fully matched with China's legal system and environment,which directly caused the conflict with legal provisions in china,and failed to achieve the expected goal of protecting the interests of investors.The first chapter of this paper mainly introduced private equity connotation and denotation in detail and analyzed its features.Meanwhile,sorted out the development and evolution history of private equity in representative foreign country,in order to give a better understanding to the issues in private equity investment.The second chapter introduced the core elements,interests distribution and control right distribution,in the provision of private equity investment agreement and analyzed the representative investment agreement clauses,so as to have a completely grasp of the private equity investment agreement.The third chapter analyzed the applicability of the introduced provisions in China's legal system,and applied the theory to the practice of investment activities,so as to find out the applicable legal issues in China's private equity investment agreement.The fourth chapter contained two aspects,one is the operable solutions for investors in the issues of private equity investment process,then put forward to assumption to the present legal system in china from the category of stock shares and adjustment in cooperation legal form,and finally make a slight contribution to the revision of the company law in china.