Research On The Post-investment Management Of Private Equity

Since the 21st century,with the capital market financing methods have been continuously innovated,private equity investment market has developed rapidly and has become an important part of China's capital market.With the change of investment environment,China's private equity investment faces the problems of exiting channels to be expanded,investment stage to move forward,exit cycle to be lengthened,and post-investment management to be strengthened and so on.The investment environment provides urgent and strict requirements for post-investment management.Private equity investment institutions have generally realized the importance and urgency of post-investment management.Therefore,they apply in management of system design and departmental arrangements.Focus on the post-investment management,this paper systematically proposes three paths.And through the case of Silicon Valley Paradise Investment,this paper tests the feasibility and rationality of the post-investment management path.Then,under T-test analysis,the difference in operating performance of listed companies with and without private equity investment is only partially significant;Private investment institutions mostly have a more positive effect on the invested enterprises in terms of growth ability;By setting up a professional post-investment department,investment institutions can accelerate growth ability and profitability.However,the value-added effect is deficient in long-term and stability.After mapping the effect of post-investment management path to the operating performance of the invested company,this paper further concludes that the post-investment management path has an actual effect:financial post-investment management does not play a substantial role but value-added services directly affects the business operations outside the invested company and then enhances the operation and capability performance of the company in various aspects.Finally,based on the above research,this paper puts forward the following suggestions for post-investment management of private equity investment in China:(1)The current situation of insufficient attention in post-investment management needs to be changed;(2)investment institutions can add value to the invested enterprise through equity after-sales management,financial after-sales management and value-added services.Among them,the value-added services play a considerable role which should be strengthened in the future.(3)In order to maximize the utility of post-investment management,it is necessary for both investment institution and invested enterprise to establish mutual trust relationship and fully integrate resources of all parties;(4)The investment institutions are supposed to set up a professional post-investment management model.Simultaneously,they ought to concentrate on the long-term and stability of the value-added effect.