The Key Factors In Private Equity Investments

Recent years with the development of Chinese economy and the rapidly growth of overseas capital as well as professional fund management companies, domestic private equity investment fund expands in a high speed. The main mode of operation of the private equity investment funds----private equity investments, is gradually accepted by the capital market and the majority of enterprises.The development of private equity investment leads a new broad way for small and medium-sized enterprises to obtain capitals to growth. It also indicates a new direction to many large enterprises to expand their business fields, and to extend the industrial chain as well. Moreover, with all levels of local governments raise their support to private equity investments, it plays a more major role in local economic development, industrial upgrading, and investment abstractions.There are multi aspects of private equity investments, including private equity fund establishment, investment decision-making, investment analysis, the valuation of the company and many other segments.In this article, I utilise relevant financial theories to explain the investment process of the private equity investments to Company YX. We would private in-depth analysis towards the reasoning, logics and methods of this case scenario. Compound with my recent experiences in the private equity industry, I would like to conclude relevant reasoning and decision making of the private equity industry, giving opinions and analysis to the critical decision making proves of the investment of Company YX.Company YX is a leading new energy photovoltaic private company in China. The investing institution which I worked, invested in Company YX in2011, and the company developed rapidly after the investment. I was responsible for the project in2011, involved in the due diligence, investment analysis, investment committee, after investment management and etc, and also the backdoor listing process.