A Study Of Private Equity Fund On Y Company's Evaluation

Private equity funds in China have entered a stage of rapid growth since the blossoming from the early twenty century.Benefited from China's economic take-off,this type of financial institution has profoundly promoted the multi-level structural improvement of the capital market and the rapid development of the primary market investment in its process of evolution.Private equity funds play an important role in transforming the economic growth model,adjusting the industrial structure and capital structure,and implementing corporate financing in a wide range of ways under the "new normal" of the economy.They are receiving growing attention from scholars and the government.At the same time,the software and information technology services industry has gradually replaced traditional industries like manufacturing and retailing to become the focus of investment,and has been vigorously sought after by private equity funds in recent years.As a strategically leading industry related to the development of national informatization,the software and IT services industry demands to be nourished in the capital soil.However,the investment evaluation system,which is one of the key components in the operation process of the domestic private equity fund,still lacks the theoretical guidance of industry specificity and applicability.Hence,the private equity fund managers often end up using a relatively broad investment evaluation system.When screening the proposed project,this deficiency will result in a certain degree of assessment error.This article stems from the author's contemplation on investment practices in software and IT services industry.This article collates and analyzes existing investment evaluation theories,combines the emphasis of private equity funds on project analysis in the actual investment assessment and evaluation process.By adopting the qualitative and quantitative research methods like the analytic hierarchy process,the author strives to examine the feasibility of investment and to evaluate the project.The author also intends to construct an evaluation system that can be applied to companies in the software and IT services industry,so as to provide reference for the private equity fund managers who have been deeply immersed in this field.When selecting evaluation indicators to study the feasibility of investment,the author settles on the two major aspects of corporate income level and corporate risk level that private equity fund managers normally focused on;in the selection of valuation methods,the author lists multiple versions applicable to different types of companies.Finally,this article applies the investment evaluation system to the Y Company case,completes the implementation,and analyses its effectiveness.