Research On The Impact Of Private Equity Investment On Corporate Growth

Private equity is a form of private fund-raising,to invest at the non-listed companies,which then provide more value-added services such as strategic direction,channel management,legal and financial,to help enterprises grow the value.This article uses the first-tier cities of China's first-tier cities as a sample to do the research on the impact of private equity investment funds on the growth of enterprises,and whether private equity investment participation and the degree of participation in private equity investment in private equity have an impact on the growth of enterprises.In order to study the impact of private equity investment on the growth of the company,this paper introduces the theory of free cash flow,through the relationship between private equity investment,free cash flow,and corporate growth,to study whether the impact of private equity participation on the growth of the company.Conclusion: The participation of private equity investment can promote the growth of the company;the proportion of shares held is positively related to the growth of the company.Finally,this article puts forward relevant suggestions from three aspects: private equity investment institutions,enterprises,and macroeconomic policies.It is believed that private equity investment institutions should continue to upgrade their professional skills and return to the origin of value-added services.Enterprises should reasonably understand the depth of private equity participation in enterprises.