Research On The Challenges And Countermeasures Of Post-investment Management Of A Private Equity Investment Firm

Under the guidance of the policy of "mass entrepreneurship and innovation",China’s start-up enterprises have developed rapidly.In the development of start-ups,private investment may be needed to help them develop better.However,due to the severe situation such as Sino-US frictions,COVID-19,and the Russian-Ukrainian war,coupled with the huge downward pressure on the domestic economy,this has led to a poor environment for venture capital investment.In the context of a poor investment environment,higher requirements have been placed on start-ups and private equity investment companies,and start-ups and private equity investment companies need to work together to seek better development.There are seven chapters in this article.The first chapter is the introduction,including the research background,research purpose and significance,research ideas and methods,research content and framework.The second chapter is theoretical basis and literature review.The theoretical basis includes information asymmetry theory and principal-agent theory.The literature review includes research on start-ups and post-investment management.The third chapter is the current status of post-investment management of Company A,including the way of participating in Company A’s post-investment management,management content,and management model innovation.Chapter 4: A private equity investment company post-investment management successful case analysis,including the basic situation of A private equity investment company,and the successful post-investment management cases of A private equity investment company(investing in Company J,investing in Company Y).Chapter 5 Analysis of the failure cases of post-investment management of A private equity investment company,including the introduction of post-investment management failure cases of A private equity investment company(M Company),the problems and reasons of post-investment management failure.Chapter 6A Post-investment management optimization countermeasures for private equity investment companies,including strengthening system constraints to transform passive status,establishing incentive compatibility to seek common interests,and strengthening process assessment and improving management closed loops.The seventh chapter is the conclusion and prospect of the research.This study has two main conclusions:(1)Two successful cases of Company A show that different levels of post-investment management models are feasible.After private equity investment Company A has made equity investment in two projects,A and B,it adopts two different post-investment management models and provides two different depths of post-investment management services.Although the two investment performances are quite different,they are both successful.,the experience is worth learning from.Investment companies need to choose the depth of post-investment management according to the actual situation.(2)The failure case of Company A shows that problems such as moral hazard causing damage to the interests of investors,disparity in objectives caused by the principal-agent problem,and insufficient linkage of investment links may lead to the failure of post-investment management,and it is necessary to strengthen system constraints to transform passive status,Establish incentive compatibility to seek common interests,strengthen process assessment and improve management closed-loop to improve post-investment management level.