Research On The Protection Of Private Equity Fund Investors From The Perspective Of Principal-Agent

With the continuous maturity of the private equity fund industry,investors’acceptance and recognition of it continue to improve.However,China’s private equity funds have just entered the stage of institutionalized development under unified supervision.The relevant laws and regulations are not perfect.In addition,the private equity funds have high risk characteristics.As a result,their hidden dangers have been gradually exposed,resulting in the infringement of investors’ rights and interests.In order to protect the rights and interests of investors in private equity funds and promote the benign development of the whole industry,the research takes the protection of investors’ rights and interests as the theme.Using literature analysis,case study and comparative analysis as research methods,combining principal-agent theory,incomplete contract theory and information asymmetry theory,and taking Z fund as the research object,the research follows the idea of "discovering problems,analyzing problems,and solving problems" and analyze the protection of investors’ rights and interests of Z fund in all stages of fundraising,investment operation and exit,as well as the principal-agent relationship between fund manager and fund holder.Combining the core interests of all parties involved,the research deeply analyzes the problems existing in the protection of investors’ rights and interests.Finally,it focuses on the suggestions for the protection of investors’ rights and interests and the safeguard measures implemented by investor supervision.According to the principal-agent theory,Z fund has information asymmetry and a limited rational situation of participants,which leads to reverse selection and moral hazard.The construction of the manager’s product risk rating system,the improvement of the information disclosure system and the construction of an effective supervision system for private equity fund manager are conducive to promoting the protection of investors’ rights and interests.Improving the investor education system and building an investor complaint regulation mechanism contribute to the guarantee of investor supervision and implementation.The process and results of this research are of reference significance for the protection of the rights and interests of private equity fund investors.