The Private Equity Fund Selection Criteria Of The Target Enterprise

Private equity funds as an informal financial financing, is a country to a certain stage of economic development and natural product, has a significant impact on the country's stock market and macroeconomic developments. In recent years, along with the rapid development of China's national economy and the rapid growth of the wealth of domestic residents and the huge investment in capital market demand, the private equity fund came into being and flourishing and has become an important capital market institutional investors.Now, China is facing the problem of excess liquidity. The stock market and the real estate bubble a serious threat to our country's financial stability and healthy development. Private equity funds can be coordinated in theory, supply and demand, and it will add funds to the lack of financial support to ease the physical investment, and thus effectively reduces the excess liquidity caused by the stock market, property market bubble. The development of private equity funds not only can effectively improve the investment and financing system and to promote social optimum allocation of resources, can also supplying a large number of listed companies to capital market and securities market. In response to these problems, in order to promote private equity investment funds in China sustained and rapid development of health, the article from the following aspects of the private equity fund has been studied.This paper uses a comparative analysis, synthesis and specific analysis of the combination of research methods. This paper described the meaning of private equity funds, private equity funds of the target company at different stages of the investment types. This paper studied the characteristics of private equity funds. As private equity funds operation is based on the successful investment, private equity funds operating mechanism have been comprehensively expounded. This paper studied the characteristics of private equity funds. As private equity funds have different types, different types of private equity fund selection of the target enterprise standards are different. The risk investment fund, the development fund and the buyout fund are classify studied.