Research On The Risk Prevention Of Private Equity In China

In international financial markets, private equity funds after years of development has begun to take shape and become a major investor in international financial markets. Our private equity fund started relatively late, is still in its infancy, there are still smaller, less standardization of operation, the operating mechanism imperfect, compared with foreign mature private equity market is still a wide gap. At present, China is still in the private fund regulatory gray areas, which have not yet been generally recognized legitimacy, insufficient supervision of relevant government departments, and private equity fund managers due to the uneven level of professionalism and many other reasons, are to some extent an increase of private equity funds venture capital, which restricts the development of China’s private equity market. Therefore private fund risk prevention, to reduce the risk of loss on private equity markets, and improve the stability of private equity funds is particularly important.Firstly, domestic and foreign private equity risk prevention literature to sort through the successful experience of foreign countries in the private equity market to provide theoretical guidance for the Improvement of private equity markets, private equity and generate a detailed risk analysis for the next targeted for private equity funds to provide a theoretical basis for risk prevention. Then analyzes the current situation of the development of private equity funds, and on the basis of in-depth study of the present stage private equity market presence risks from the external environment and internal operations affect two aspects of private fund risk classification, and further summarized the current the presence of six risk categories laws, policies, markets, investment, credit, and other operations. Secondly, the risk assessment of private fund system has been established in empirical studies, the six major categories of risk factors that impact on the overall level of risk of such qualitative indicators quantitative represent, respectively, calculated as the total weight of each risk factor risk weight, That is the specific impact of each risk factor to the overall risk. Finally, by combining the results of theoretical and empirical research, targeted suggestions put forward relevant private equity fund risk prevention, is conducive to private investment fund reasonable understanding of problems faced by the fair assessment of investment projects, and it helps to avoid investment in time risks present in the project, lower investment losses and increasing return on investment for the promotion of private fund market standardized operation, and promote the healthy and stable development of private equity funds is of great significance.