The Operation Mode And Risk Analysis Of "Listed Company And PE" Structured Fund

With the beginning of the sixth m&a boom in recent years,buyout funds have been widely used in m&a transactions.In order to meet the return demand of different investors,the buyout funds with structured arrangement was born.However,due to the immaturity of the capital market and the lack of regulatory mechanism,the risk of structured funds gradually emerged.Although the People's Bank Of China,China Banking and Insurance Regulatory Commission,China Securities Regulatory Commission and other regulatory institutions have deal with the potential risks of structured funds from the policy level,there is no guidance for the risk management of structured funds.Based on this,this paper discusses the operation mode and risk of "listed companies and PE" structured funds,and constructs a targeted risk analysis framework for structured funds,in order to provide reference for the development and supervision of structured funds in the future.Firstly,this paper discusses the motivation for the establishment of structured funds and the typical operation mode--"listed companies and PE" type.Secondly,the paper discusses the characteristics of "listed company and PE" operation mode and the possible potential risks,which are mainly manifested as agency risk,moral risk,financial risk and profit transmission risk.Then,this paper builds the risk analysis framework of "listed company and PE" structured fund based on its operation process.This paper takes Shanghai Jinxin fund as an example and uses the risk analysis system constructed to analyze its risk.It is found that there are agency risk,target enterprise selection risk and management risk,PE exit risk and listed company default risk from establishment to exit.In addition,this paper further analyzes the financial impact and legal consequences of the explosion of the risk of Shanghai Jinxin fund.First,the flexibility of the control right determination of the limited partnership structured fund makes its investment loss not fully reflected in the statement.Secondly,the effectiveness of the repurchase agreement is controversial and fails to fulfill its obligations to the listed company information disclosure with legal consequences.Combined with theoretical analysis and case analysis,this paper finds that various factors contribute to the construction of structured funds by listed companies.Structured funds mainly have two typical operation modes,and there are various risks such as agency risk,financial risk and benefit transmission in the operation process.At the same time,Suggestions are put forward according to the research conclusions: structured funds should build a sound risk management system according to their operation process,and at the same time,appropriate reduction of leverage multiples is required.Regulators need to improve risk management guidelines for m&a funds and strengthen supervision of information disclosure.