Empirical Research On PE Frontier Efficiency And Its Influencing Factors Based On SFA

Private equity investment refers to equity investment in the seed, start-up, development,expansion, maturity and Pre-IPO stage and other various periods in non-listed start-ups,and when the invested enterprises become mature or relatively mature, the investorsexit mainly through transfer of ownership to obtain capital gains of investment.Efficiency frontier is used to measure the current level of technology, which reflectsthe extent of the prior art play. In recent years,there are many researches about PE, butmainly concentrated in the operating mechanism and the investment structure insteadof empirical research of efficiency or yield.This paper regard the frontier efficiency ofPE projects as its research object,first analysis various influencing factors through theoperating mechanism,and then use SFA for its empirical analysis.This paper selects110projects of our local private equity investment whichexited from Shenzhen GEM recent years, selects the total amount of recovered asoutput variable, the total amount of investment, the number of management team andthe project investment cycle as the input variables, and uses SFA and Frontier4.1tomeasure the relative frontier efficiency of private equity investment programs, as wellas the factors that affect the efficiency value. Research shows, the first: the averageefficiency value of our private equity investments is0.6379, and the distribution ofvalues is very scattered, with the highest is up to0.9541and the lowest is0.1503; TheSecond, of all the influencing factors, investment institutions’ type, location of theinvested enterprise and the investment amount are more significant. Other factors’influences on the relative efficiency value are not significant.