W Private Equity Investment Company Venture Capital Project Risk Management Improvement Research

Private Equity(PE)investment refers to the fund’s private equity rather than public fundraising.It conducts equity investment in unlisted companies and enterprises,and adopts some legal means to sell the equity to obtain profit.Investment and financing activities.In October 2018,the China Securities Fund Association issued the "Private Fund Manager Registration and Private Equity Fund Product Filing Monthly Report(September)",showing that the management institutions with a management scale of less than 2 billion yuan accounted for nearly 80%.The two-level differentiation is particularly serious.Compared with large private equity management institutions,small and medium-sized private investment institutions are limited by management costs and management experience.It is difficult to conduct risk management and control in the project,which leads to many project risk control.Risk control is an important “safety gate” for private equity funds.Once this “safety gate” fails,the risk of the fund will suddenly increase,triggering a subsequent chain reaction.Therefore,it is imperative to study the investment risk management of small and medium-sized private equity funds.This paper focuses on the risk identification and risk control of private equity investment,and discusses the risk management method of private equity investment.The research content is divided into four parts: The first part introduces the research background,research significance,literature review,research methods and research content of the paper.Through the review of domestic and foreign research status,the general research on risk management of private equity funds is summarized.The second part is to sort out and introduce the related concepts of private equity investment.Private equity investment not only provides new channels for SME financing,It also has a positive impact on the national economy,capital markets and invested companies.However,the special nature of private equity funds makes their risk points have a wide range,complicated and closely related risks,so that their risk factors are difficult to identify and circumvent.To this end,this paper summarizes and summarizes the common risk management methods at home and abroad,finds the place where it applies to private equity investment,and adopts appropriate methods to identify risks;The third part is the case company part.Firstly,based on my field research in the case company,I briefly introduce the development status and operation process of W private equity investment company,and explain the current situation of company risk management by combining the five elements of 2017 COSO.On this basis,systematically sort out the risks of each part of W private equity investment company,use the research interviews and business process combing methods to identify the main risk points of the company,and summarize the fund raising,investment,management and retreat of the company.The main risk sources and risk exposures are evaluated and analyzed in the actual operation process and risk control methods,and the causes of risks in each link are discussed.The fourth part is for W company risk management.Insufficient improvement and optimization,to provide reference for the company’s measures to face risks in the operation process,a nd to develop a safeguard mechanism for risk management strategy implementation.