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1、毕业论文外文资料翻译 题 目 普通合伙人在私募股权基金 投资业务的缺乏研究探析究 学 院 经济学院 专 业 金融学 Journal of Chinese Economic and Business Studies, 2012,6(3):10-13.Study on the Lack of the General Partner in the Private Equity Business WANG JinghuaAbstract: This paper firstly points out the phenomenon and reason of the lack of the general
2、 partner (GP) in Chinas private equity business, and then discusses the risks caused by the lack of the GP. Based on this, the paper puts forward some relevant policy Suggestions. This papers innovations lie in analyzing the reasons and risks of the lack of the general partner (GP) in Chinas private
3、 equity business. This papers contribution is to discuss the PEs risk and its controlling from a new Angle. The conclusion is that the GP lack is a special phenomenon in the PE development, and the lack will produce many risks, so we should implement various measures to develop GP. Key words: Privat
4、e equity, General partners, General partners lackIntroductionEarly in the development of private equity investment trust, one of the more mainstream view was that it was a realistic choice of the private equity industry (Li Jianhua, 2007; Lee ching yun, 2007), and has gradually become a trust compan
5、ys new favorite. At the time of trust industry keen on private equity, Does the trust company really have a talents advantages, or can it act as a real fund management person? In addition to the trust company, the private equity fund by means of sponsorship is qualified for playing the role of the f
6、und managers.Early in the development of China private equity investment industry, the trust company may also be thought to have certain talent advantages. However, with the fast development of the private equity investment activities in China, there emerges a asymmetric phenomenon: one aspect is th
7、at there exist a large amount of LP (Limited Parters) and investment thirst; the other aspect is that GP(the General Parters) in the private equity investment business, namely qualified fund manager, is seriously insufficient. It is known that the private equity investment be separated from the expe
8、rienced fund manager, namely the general partner. This asymmetric problem cannot be solved in the short time. However, the more long this asymmetries last, the more disadvantageous is it for the industry development. The lack of GP may become the bottleneck which influences the healthy and long-term
9、 development of the private equity investment, because the implied risk from the lack will became important factors considered by investors, and this judgment may eventually became restricting factors of the long-term development of China private equity investment industry. Compared to the history o
10、f private equity markets abroad for decades, the development time of China private equity fund, whether security or equity investment, is very short. The training for advanced professional talents required by the private equity investment industry has barely begun. Therefore, with such fast developm
11、ent of private equity investment, the talent bottleneck stands out. This paper will firstly analyze the reasons of the lack of GP in China private equity investment, then discuss the risks caused by the lack of GP. Based on this, the paper puts forward some relevant policy Suggestions.THE REASON OF
12、THE LACK OF GP(GENERAL PARTNERS)The lack of GP is considered as a specific economic phenomenon in China, it is not a universal one. The GPs lack can be explained from the two aspects including demand and supply. One is the excessive demand on investment, the other is the insufficient supply of inves
13、tment tools and investment goods. The GPs supply, which is associated with the supply side, cant meet the growth of the market demand. the reason of the lack of GP is mainly reflected in the following aspects:1. the Imbalance of Economy DevelopmentIn the course of early economy development, the deve
14、lopment of the real economy is put emphasized on, the virtual economy development is lagging behind, so there is no GPs living space. And It also caused the imbalance in the supply of GP and LP. On the one hand, the development of the real economy forms a large number of potential supply of LP (the
15、second reason in the later); on the other hand, the delayed development of virtual economy leads GP supply shortage.In recent years, the development of the capital market and virtual economy not only promotes forming a large number of LP, but also trains a number of securities investment funds and t
16、heir corresponding senior manager. But from the strict perspective of PE, they are not full sense of the GP. Because the private equity investment not only includes securities investment, but also other risk investment business. Therefore, with the rapid development of PE, some original securities i
17、nvestment funds and their executives are starting to turn to PEbusiness, even so it cannot meet the needs of GP from PE funds.2.the Lagging Development of the Private Equity MarketFrom the proportion of private equity fund investment in the GDP annually, the United Statess private equity fund is 0.6
18、% of GDP for the year, the Europeans and the Asias is 0.35% and 0.2% respectively, while in China the ratio is less than 0.1%. GDP in China is 3 times that in India and in Australia, but the size of the private placement market is generally close to theirs. Currently, more than 95% of the private eq
19、uity funds in Chinas capital market is characteristic with foreign-funded background, and only less than 5% of the private equity funds is really local private equity funds. Delayed development of the private equity market is an important reason for the lack of GP.3.the Lagging Specification of the
20、Relevant Laws and RegulationsAt the beginning, the private equity fund controls consciously the risk according to the principles of industry self-regulation, which has been continued until happening of the subprime crisis. In the industry, there are different views on whether we should make a indepe
21、ndent legislation toward the private equity fund. Some people think it is not necessary to make legislation. And they think although PE has developed hundreds of years in foreign countries, there is still no specific regulation. They mainly depend on reputation mechanismsself-regulation mechanisms t
22、o regulate the PEs behaviour, so there is no need for the separate legislation. Therefore they think we should not make independent legislation toward the private equity fund. This situation also leads to the lagging specification of the relevant laws andregulations on a private equity investment, a
23、nd the lag restricts the development of the GP. However, as the lack of the trust culture and external market regulation mechanism in China, it is obviously not sufficient to only rely on the individual creditas the primary means of controlling the principal-agent risk.RISKS ARISING FROM THE LACK OF
24、 GPThe foregoing analysis shows there are many factors which cause the lack of GP. Then what is the influence of the lack of GP. In the following, the paper will make a in-depth and concrete analysis on the risk caused by the lack of GP. The concrete risks are shown as follows:1. Risk of the Potenti
25、al-Transfer-TrustAs the development of PE in China, PE investment activities appear increasingly active. The general investors, qualified institutional investors, even financial institutions such as the trust company, Bank and insurance company, are paying close attention to huge commercial opportun
26、ities and rich return from PE investments, and having certain investment impulse. However, the supply of GP as a important role related to PE investment activities is seriously insufficient, and is difficult to meet the demand of investors and PE Funds. Especially, when the sponsor itself is not eno
27、ugh to be competent for GP, and not willing to abandoned such market opportunities at the same time, some institutions complete GPs investment and management function by cooperating with the third-party investment consultants and the main way is to employ the third-party investment consultants. Unde
28、r this condition, the GPs function is decomposed, the delegate-agent relationship between sponsors and investment consultants is comparatively fuzzy. And the employing relationship is substituted for the delegate-agent relationship, while the duty and risk-bearing of the employing and the delegate-a
29、gent are different. In actual operation, some institutions implement transfer-trust in the name of employing, this is really a potential-transfer-trust. In the process of the potential-transfer-trust, both parts of the transfer-trust do not bear decision risks, and transfer the risk duties. Which wi
30、ll finally damage the investors interests(Wang, 2011).2.Risks of Investors InterestGenerally, the investor pays more attention to high return on investment. If GP is in the lack, and the current GP can not be qualified for fund managers responsibilities, investors profits will not get effective prot
31、ection. This is mainly because the current GP in the field of venture capital investment lacks professional abilities. Compared with the PEs risks in internationally mature markets, operational risks from the GPs lack may be greater. Therefore, the lack of GP further increases the risk of PEs invest
32、ments, which finally makes the investors interest risk greater.3. GP Credit RiskGP is the key factor which influences the success of private equity investments. In the long run, GPs fundraising capacity will be influenced by the successful investment performance in the early phase, and it can be sai
33、d that obtaining an absolute income is the root survival factor, because customers requirements for absolute income is very high. Therefore, once the private equitys performance declines sharply and even losses, customer loyalty will be greatly reduced, the private equity will face a survival dilemm
34、a. Obviously, there exists reciprocal causation relationship between GPs historical performance and its market reputation. Therefore, the lack of the qualified GP or the fund manager required by the private equity investment will inevitably affect the investment performance of GP, leading to the cre
35、dit risk.CONCLUSIONS AND POLICY RECOMMENDATIONSThe above analysis shows the GPs lack may cause many risks, such as the risk of the potential-transfer-trust, risks of investors interest, GP credit risk, and restraints on the capital market development. And these risks are an inevitable phenomenon acc
36、ompanying the process of economy development. If we can formulate appropriate policies and regulations, and take appropriate regulatory measures, risks from the GPs lack can be controlled. To control radically the risk of the GPs lack, we should firstly solve the problem of the GPs lack. Therefore,
37、it is necessary to establish a mature and effective mode for training GP, to increase the supply of qualified GP.From the requirements and training mode for qualified managers of the foreign mature private equity, we can draw the following conclusions: in addition to the basic job conditions, for fu
38、ture managers, the management ability, grasping ability for investment opportunities, financing ability, investment decision ability, risk recognition and control ability, and product innovation ability are paid close attention to. However, the ability which is related to the private equity manageme
39、nt is difficult to obtain from books, and they must obtain them through the continuous accumulation in practice. Only by that, a qualified fund manager can be trained Successfully. Certainly, the entire process may take many years.Similarly, it may take a lot of years to build a talent market or tal
40、ent pool of the private equity manager to meet the investors needs. Therefore, it is an effective way to set up a training model from top to bottom, to strengthen the training for GP. The concrete suggestion is as follows:1. With the Strict Legislation and Industry Regulations to Determine Employees
41、 This is a requirement for the employees basic condition. without the corresponding conditions, the employee should not be allowed to enter the industry. At present, there are some regulations on employees qualification for the private security investment, but there is no strict rules on employees q
42、ualification for the private equity investment. And it is necessary to note that as the risk from the private equity investment is greater than the private security investment, the qualification identification of the private equity investment should be much stricter.2. Building the Trust CultureThe
43、means of managing financial affairs of the private equity fund is in essence a means of the financial management of the trust. Under the condition that the trust culture has not been established, the construction of the trust culture has a subtle effect on talents cultivating. Therefore, we should s
44、trengthen the trust culture building, and use the cultural influences to improve the GPs training, to increase the supply of GP.3.Building the Training Platform in the IndustryTheir own training platforms constructed by industry associations are quite different from the platform of the production-ed
45、ucation-research cooperation in colleges and universities. Industry associations can do many important works to carry out the vocational training, and they can also employ foreign counterparts and experts to promote the professional vocational training. These will make a difference for the training
46、of the qualified GP.4. Establishing the Professional Talent Pool of Private Wealth ManagementThe employee unit should actively take the initiative to provide all relevant learning opportunities to train the employee capacity, to build their own talent pool. For example, when the trust company carrie
47、s out the private equity business, it can make use of its existing talent to purposefully develop their own professional managers of private equity. At the same time, the trust company can take advantage of cooperation opportunity with other investment adviser companies, or to attract the best talen
48、ts, or to absorb some excellent investment consultants. Through that way, the trust company can establish the appropriate talent pool, and improve its investment advisory capacity.5. Employees Learning by DoingWhat the training of the unit or the industry can provide is only a learning opportunity.
49、But whether the trainees can learn and become qualified top fund managers or qualified GP depends finally on their own learning abilities. Therefore, the employee must be down-to-Earth, be strict with themselves, cultivate their own trust sense, and improve their capacities of risk investment and management.References 1 Can Kut, Risk management in European private equi