A Case Study On RZ Fishery Breeding Company’s Investment Decision-making Of Shenzhen Capital Group

Equity investment mainly refers to private equity institutions’ investing the equity of unlisted corporations. As an important channel between capital market and real economy, it’s not only can help the social capital enter the entity enterprise, but solving the difficulty of small and medium enterprises’ financing, getting social resources rationally allocation. Equity investment is growing with the development of China’s financial markets and improvement of the financial legal system. Reasonable and effective model of investment decision and management is vital to private equity institutions while raise the level of value found, control the investment risk and realize the investment value of appreciation.The article based on SCGC investment RZ fishery breeding company. Describe the case background, research fishery breeding industry, analysis the RZ’s value and risk etc. Dissect the case from the discovery of equity value, value-added and implement. Firstly, making comprehensive consideration for macro-economic situation and industry background, combine RZ’s product mix, business model and market profile, discovery the case’s value. Secondly, in the phase of value-added, the article describe the SCGC’s valuation method on RZ and the main key of investment plan, including the risk anticipation and the corresponding risk control strategy. In order to ensure the value realization process smoothly in the future, post-investment management and exit way are designed by contract in the investment plan. Both SCGC its own platform resources and the way of post-investment management are the important key of corporate value-added.Eventually, the article concludes the inspiration for the other small and medium private equity institutions in the aspect of investment decision-making process. Like management system and the mode of the risk control, discovery of equity value, value-added and implement. In the investment team construction of SCGC, the ability of discovery of equity value of investment teams and interworking also make important significance. Nearly thirty teams all over the country have themselves adept filed. The high level of management present at the risk control as they have clearly responsibility. The case also make an example for the corporation between equity investment institutions and enterprises.