Conflict of the Interests and Coordination in Privately Offered Fund Investments
|School||Shanghai Jiaotong University|
|Keywords||Private equity fund Conflicts of interest Direct investment and brokerage Limited partnership Information wall|
\the phenomenon of abuse . Tracing the source , the private equity fund is essentially based on the provisions of the regulatory exemption and with a high degree of operational flexibility investment pool , set up its fund-raising is based on a relationship of trust between the fund investors and managers . Operation of private equity fund managers is based on the trust of investors and direct control of the funds, and the objective of maximizing the interests of the investors faithful agent to fulfill obligations , the use of funds for investment . Agency relationship , however , has a natural concomitant drawbacks , is a conflict of interest in the agency between the parties , especially when mixing private equity fund management artificially brokerage , brokerage complexity of the interests of the relationship between the various departments often easy to cause unfair and damage to the interests of investors . Coordination of the interests of the private equity fund conflict is the core of the study . The fundamental advantage of the private equity fund operating flexibility , and coordination of a conflict of interest can not be at the expense of sacrificing its flexibility . Therefore , most countries tend to guide to improve its organizational structure , strengthen its internal self-restraint , the main way of external supervision supplemented by regulation . Is generally believed that the limited partnership form of organization can effectively prevent conflicts of interest , and the form of integrated securities firms manage the direct investment funds and private equity funds , the best way to prevent conflict of interest is to establish an effective information brokerage house wall system .