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The abstract of this paper is as following: Recently, the private equity funds invade domestic industries, such as financial Industry, the telecommunications industry, and also hi-tech industries, such as the semiconductor, the panel, and the closure measurement. Especially, the effects to the financial industry and the telecommunications industry attract the public concern.
The research is a study on private equity funds and a discussion on the problems that are likely derived from Leveraged Buyout (LBO), which is commonly used in raising the private equity funds for acquisition.
Two recent cases, such as CNS and Primax will be presented in the paper for better understanding of the business models and the risks of private equity fund. Hope it may be helpful for future participants and the researchers of private equity funds.
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