Advantages: high income and standardized management; Disadvantages: high listing threshold, long cycle and uncontrollable policy risks.

2. Exit in merger and reorganization.

Advantages: high efficiency and flexibility, controllable cycle; Disadvantages: so it is generally difficult to clinch a deal.

3. Withdraw from share repurchase.

Advantages: the transaction process is simple and the income is guaranteed; Disadvantages: high opportunity cost and uncontrollable legal risks.

4. Exit during liquidation.

Advantages: Stop loss is mandatory; Disadvantages: there are investment losses and negative market effects.

Legal basis: People's Republic of China (PRC) Company Law.

Article 76 The establishment of a joint stock limited company shall meet the following conditions:

(1) The promoters meet the quorum;

(2) It has the total amount of capital subscribed or paid-in by all promoters in accordance with the articles of association;

(3) The issuance and offering of shares comply with the law;

(4) The promoters shall formulate articles of association, which shall be adopted by the founding meeting;

(5) Having a company name and establishing an organization meeting the requirements of a joint stock limited company;

(6) Having a company domicile.

Article 77 A joint stock limited company may be established by means of initiation or offering.

A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company.

The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.

"Several Provisions on Strengthening the Supervision of Private Equity Funds" Article 8 A private equity fund manager may not directly or indirectly use private equity fund property for the following investment activities:

(1) Non-private fund investment activities, such as borrowing (depositing) loans, guarantees, and debt clearing, except that private funds provide loans and guarantees for the invested enterprise within 65,438+0 years according to the contract for the purpose of equity investment;

(2) Investing in credit assets such as factoring assets, financing lease assets, pawn assets, stock rights or their income rights;

(three) engaged in unlimited liability investment;

(4) Other investment activities prohibited by laws, administrative regulations and China Securities Regulatory Commission.

If the private equity fund commits the act mentioned in Item (1) of the preceding paragraph, the maturity date of the loan or guarantee shall not be later than the withdrawal date of the equity investment, and the balance of the loan or guarantee shall not exceed 20% of the paid-in amount of the private equity fund; Unless otherwise provided by the China Securities Regulatory Commission.