Analysis On Risks Identification And Control In Private Equity Fund Invested In Film And Television Industry

With the development of China’s economy,private equity funds(PEFs)have also grown rapidly.By the end of 2018,the scale of PEFs in China has exceeded 12 trillion Yuan.Meanwhile,more and more problems have exposed gradually in private equity field.These problems arise from the lack of regulatory mechanism and the insufficiency of risk-control in investment management of PEFs.Based on the review of literatures,this dissertation takes X PE Fund as a case,analyses the risk-control of PEFs invested in film and television industry,summarizes the objectives of risk-control,and puts forward some suggestions for improving the risk-control of X Fund.The findings of this study are as follows:a)There are many factors in the risk identification and control of PEFs invested in film and television industry.PEFs need to combine risk-control with market environment and audience’s will in the investment process.b)The goals of PEFs risk-control are consist of three parts: to ensure the safety and integrity of the company’s assets,to promote the stability and development of the financial market,to promote stable operation of PEFs and the national economic growth.c)The risks of PEFs exist in the four stages: fund raising,project investment,post-investment management,and exiting.d)It is necessary to construct the risk identification and control system.e)PEFs invested in film and television industry must deal with not only the conventional risks of investment,but also sporadic risks,to deal with not only "grey rhinoceros",but also "black swan".f)Strengthen the risk-controlling the exiting stage to ensure liquidity and profitability of investment.