Study On Risk Evaluation System For Joint Venture Of Private Equity Fund

In October 2009, China launched the Growth Enterprise Market providing a broader space for development and exit to the private equity funds (PE). Joint venture is an important and commonly used investment mode in PE investment projects, and the projects of joint investment have a larger probability of success.Most of PE studies at home and abroad focus to the more general conceptual framework, and a small number of them build and analysis evaluation systems; In the studies which build evaluation system, most of them based on industry sectors, while few studies based on investment mode; in joint investment model for the study, majority focus on performance evaluation, a small minority focus on risk evaluation.For understanding the risks, effectively averting risk, accurately predicting the risk of enterprise value and making successful investment activities, carrying out investment projects risk evaluation method are of great significance. At the same time, only with professional, detailed, targeted evaluation system, we can identify, manage and control project risks and reduce them to a minimum, so that the investment is a great success.This work mainly in the following sections:First, systematic analysis of the PE risk factors in joint venture. Using systems analysis method, on the basis of the available information and field work of PE, this thesis analyses the PE risk factors in joint venture from the environmental analysis, elements analysis, feature analysis and classification analysis, and ultimately divides PE investment risk into six major categories, consist of liquidity risk, moral hazard, joint risk, market risk, technical risk and management risk. These efforts are mainly in Chapter III.Second, the establishment of risk evaluation system for joint venture of PE and making an empirical analysis. Based on the analysis of PE risk, this thesis selects indicators and methods of a joint venture, and builds a risk evaluation system for joint venture of PE. In the empirical analysis, using Monte Carlo simulation techniques and ELECTREⅡmethod, this study evaluates three samples of single project and multi-project analysis. These efforts are mainly in Chapter IV and V.This study has following innovations:Innovation on research perspective. In current studies, most studies are done by industry classification, and the evaluation systems are based on the performance of PE funds. This study focuses on the perspective of PE investment mode and pays more attention to the risk of joint venture.Innovation on research methods. This article focuses on two aspects, risk analysis and risk evaluation system. In risk analysis, it uses systems analysis method; in risk evaluation system, it uses Monte Carlo simulation method in single-project valuation and ELECTREⅡmethod in multi-project evaluation. This thesis effectively covers the important aspects and various characteristics of joint venture as much as possible, making this study representative.