The Empirical Study On The Benefits Of Private Equity Investments In China

In this paper, some typical cases of private equity (PE) investments were investigated to extract the corresponding parameters as basic research data. Based on these data, a systematic analysis on the benefits of private equity investments have been made when they exited.Comparative analysis approach has been mainly used to research the benefits of investors when PE funds exited. Firstly, the relevant data have been sorted out from the investigations on the cases and listed. Then the concept of return on investment (ROI) was introduced and the values of ROI from all the cases were computed according to different projects, different ways of exit and different time of exit. Thirdly, through the average deposit interest rate in recent years and the level of deposit interest rate at the time of investing, they were calculated that the total value and the average value of the deposit accruals of investment amount; then they were compared with the benefits of PE investments. Last but not least, they were sorted out that the values of ROI of enterprises in construction industry from 2005 to 2009 and compared with the values of ROI of PE investments.And approaches of statistics were mainly used to research the benefits of financers when PE funds exited. Firstly, the relevant data of financers were sorted out from the investigations on the cases and listed. Secondly, the average values of the growth of the enterprises' values were introduced as research parameters and it would be dependent variable to have made a linear regression analysis with financing amount; then I got a regression model which explained the relation of investment amount and the enterprises growth. Finally, they were sorted out that the other aspects of the PE investments' influences on financers.At the end of the paper, six advices were given for both sides of investors and financers according to all cases analyses.