With China’s growing economic strength , private equity funds in China have developed rapidly, but As for the private equity investment funds have not yet taken the form of a unified opinion better.

This paper sets forth on the analysis of development of private equity funds in China, comparing the legislation of different countries, and comments on the problems of private equity funds in our capital market at the present.

Along with China’s rapid economic development, the private equity fund, as a new type of financial intermediaries, has begun to play an increasingly important role in the financial market.

Research on Foreign Private Equity Investment Fund

PE (Private Equity Funds) is an collective investment tool, which mainly makes equity investment to non-listed enterprises through private placement.

The evaluation of target enterprise is an important process in Private Equity(PE) operation system,which determines whether the investment will be successful or failed.

Private Equity plays an irreplaceable role on promoting the industrial pattern to combine.

In this paper, we show that: Venture Capital and Private Equity have changed their investment strategy in China from only focusing on some specific industries to all the industries closely related to China’s fast-growing economy.