In a dispute over the exit of a private equity fund investment, the core controversy was whether the transaction in question constituted “equity in name but debt in substance”. HongQiao ZhengHan thoroughly sorted out the investment structure, conducted an exhaustive review of viewpoints, cases and doctrines, and successfully obtained a reversal of the judgment on appeal at the Shanghai High People’s Court. This overturned the first-instance court’s penetrating review of the contractual relationship, clarified the legal review rules for private equity investments, and avoided the huge risk of the fund manager being pursued for recovery. In the enforcement phase, the firm actively coordinated with various institutions, successfully disposed of stocks and dividend payments quickly, and recovered nearly 100 million yuan for the client. This case provides an important reference model for the handling of private equity fund exit disputes.
