Study On The Enterprise Risk Management Of Private Equity Model

With economic developing, Chinese enterprises want to achieve sustained development and increase the value of assets, financing channels must be diversified. In that case, Private equity financing models have emerged, not only can bring in funds, more importantly, to introduce advanced management and financial system .In the future, financing enterprises can smoothly enter the capital market and finance for the development.Private equity financing is a financial innovation, as a creative economic activities, which contains a huge risk all the process, virtually every link may have failed. Therefore, how to widen financing channels for enterprises, how to avoid the risks, how to achieve a win-win situation, how to strengthen private equity's risk management is very significance.Private equity has various ways, one of these is shareholders. The focus of this paper is to study the risk management of private equity financing model, gives some useful ideas to the risk in the operation, stated on private equity risk management framework. Aimed at the characteristics of risks taking corresponding management and control tools to prevent and reduce the private equity market risks.The paper is divided into seven parts, the first part is the private equity financing for the development of the market situation, the background and purpose of the study; The second part is private equity financing, private equity investment legal environment and the necessary of its existence; The third, fourth, fifth part is the main part of this paper, a detailed description of the rapid development of China is the private equity capital markets, its market structure and operation processes of risk management , through the risk management issues, proposed for China the actual situation of the enterprise private equity financing for the risk management recommendations; The sixth, seventh part combinates the recent private equity investment case to describe and analyze.