The Study Of Valuation And Pre-Money Risk Managemant For Private-Equity Fund

Private equity fund investment is a major way of investment in market economy countries.The investment practices of western developed countries have proved that this kind of investment mode has the characteristics of strong specialization and diversified income targets,and it is a suitable investment mode for investors.At the same time,it plays an indispensable role in accelerating the transformation of scientific and technological achievements,promoting new industries,providing valuable pre-financing for new companies,and promoting industrial upgrading and expanding employment.In recent years,with the development and deepening of the capital market,private equity investment in China has also been rapid development.It provides another professional investment choice for Chinese investors,and is more and more welcomed by investors.On the financing side,private equity financing has become the third largest financing means after bank financing and public financing.Private equity funds are becoming a major investment mode in China,and an important force in promoting the transformation of scientific and technological innovation achievements and realizing the national innovation strategy.However,since the investment time of private equity fund in China is relatively short,not only the irregularity of private equity industry itself and some other defects affect the success of private equity investment,but also the two key links of private equity fund,the valuation of private equity project and the control of investment risk,have become the impact of private equity investment in China.Two key issues for success.This paper combines case studies on these two issues,aiming at exploring a complete set of investment decision-making system,hoping to help the development of private equity investment in China.This paper divides the valuation of private equity projects into two parts: enterprise evaluation and valuation.Only when the enterprise evaluation and valuation are in line with the standard,can the project have investment value.This paper combines qualitative and quantitative analysis to analyze the value of enterprises that want to invest,and introduces analytic hierarchy process(AHP)to assign weight to the evaluation index of the project,so as to assist investment decision-making.When evaluating the value of the project,this paper refers to the evaluation criteria of some famous investment institutions,designs relevant evaluation indicators,and sets relevant criteria for whether to invest or not.The difference between preinvestment risk and post-investment risk is that pre-investment risk should be considered more comprehensively,and major risk factors that may occur in the whole investment cycle need to be considered.The analysis report of pre-investment risk is related to whether the investment can be carried out.In the pre-investment risk analysis of the project,this paper mainly considers the risk of internal operation and management,industry risk and investment exit risk.After constructing the system of value evaluation and pre-investment risk control,this paper verifies the applicability of the decision-making system given in this paper through an analysis of a practical case.Through the analysis of A private equity fund on the relevant wind control measures before investment of project enterprises,it is concluded that the risk before investment of project enterprises is controllable.This paper also points out that the analytic hierarchy process(AHP)has its limitations,that is,the weight assignment of indicators has certain subjectivity and can not be fully quantified.Different fund managers may have deviations because of their different knowledge backgrounds and different professional levels.