Research On The Performance Of Private Equity Investment Project

In recent years, private equity investment capital from a game of foreigners transformsinto a business model that everybody wants to try it. The advantages of private equityinvestments are clear responsibility, priority to efficiency, tax incentives. These make itbecomes one of the most dazzling innovations in China recent years. This type ofinnovation is not only advocating a kind of new cooperative model of society, what moreimportant is to guide the optimization of resources and configuration, and help to achievesocial efficiency and equity. However, the theoretical and practical issue of private equityinvestments related to the research is still relatively weak, particular the investmentperformance problem. There is great significance both for investment and financingdecision-making behavior.In this paper, the data of1371exit project during2000to2010come from CVSource.These to be divided into24group time series according to exit time, each book include theinternal rate of return, the cumulative amount of investment. Then carry out a systematicanalysis of the performance of private equity investment projects by using the multipleregression statistics, time series decomposition, autoregressive moving average.This thesis is divided into five parts. Chapter I is Introduction, elaborate ofbackground and significance, current research, research content and methods, innovation.Chapter II is the theory of private equity investment, involves the basic definition,classification, the main characteristics of private equity investments, and private equitymarket structure&investment process. Chapter III is analysis of private equity investmentproject performance, including micro determinants of private equity investments projectperformance, macro determinants of private equity investments project performance andselection of performance metrics. Chapter IV is empirical research of private equityinvestment project performance, this section use multiple regression model, time seriesdecomposition model, autoregressive moving average model from influencing factors,wave period, autocorrelation analysis the data and draw conclusions. Chapter V isconclusion, that summarize of the full text research.Main conclusions of this paper are private equity investment project’s internal rate ofreturn overall trend is gradually declined slightly, the average decrease3.36percent every six months; private equity investment project’s internal rate of return cycle is five years anda half; there is a negative correlation between the IRR of certain period (six months) andsix months ago, while a positive correlation between the IRR of certain period (six months)and before a year; private equity investment exit IRR is negatively correlate with the sameperiod per capita GDP index, currency quasi money supply up growth, investment cycle,the amount of investment, and positively correlate with the multiply Shanghai index andclosing the product of the probability of IPO exits.