A Study On The Risk Control Strategies Of Private Equity Of X Capital

In recent years,with the increasing downward pressure of the macro economy and the aggravation of the international trade friction,private equity in China is facing great challenges in both fundraising and investment.The term "capital winter" is constantly spreading.From January to November 2019,the total amount of fund raised in China's equity investment market was 1.08 trillion yuan,indicating a decrease of 10 percent,and the total amount of investment was about 730 billion yuan,indicating a decrease of 29.5 percent.The differentiation between investment institutions is obvious,and the survival of the fittest mechanism of the industry is gradually emerging.Some institutions have poor performance in risk management and investment efficiency,as a result,it is hard for them to exit after investment and get well-paid in investment.In the study,the case of X Capital investing in company Y is selected to study and analyze the risk control strategy.First of all,the study gives a brief introduction to the two parties and explains their motives for cooperation.And then the study analyzes the risks faced by investing company Y,and analyzes the potential risk of the project from the perspectives of industry development,enterprise technology level,enterprise internal management and financial status.In order to deal with the risk,X Capital invited industry experts to evaluate,and explored the technical level of the target company from multiple dimensions,so as to determine the valuation model and investment terms to complete the investment.Through the analysis and research on the cases of X Capital,it is found that in the process of risk management,the risk control strategy for each project is relatively single and not highly integrated with the project itself.In addition,the institution does not pay enough attention to the litigation of the target company,and the communication efficiency of project information also needs to be improved.X Capital has a certain representation in the industry,and its risk control problems also appearin many peers.The above problems should be paid attention to by the investment institutions to protect the interests of investors and reduce investment risks.The study puts forward the following suggestions.The investment institution can fulfill the responsibilities of project team members,focus on the management of key personnel and key nodes of investment,and customize the risk control strategy according to the characteristics of the project.In addition,investment institutions can also establish a typical project library,continuously track and manage the invested projects,constantly reflect and summarize the existing problems in risk control,and improve the risk control level of the institution.