Research On The Credit Risk Assessment Of Private Equity Funds

With the deepening of economic globalization and the continuous improvement of people’s living standard, the income of people is increasing. The investment has become a heated topic between people. Since the reform and opening policy in 1970 s,the financial market of china is developing rapidly and people have more investment channels. As one of the new forms of investment, private equity funds have caught people’s attention. But in recent years, with the occurrence of the incident, more and more people pay attention to the risk of the private equity funds, especially on the credit risk. This article, from the perspective of risk quantification and control,designs and studies the credit risk of PE funds assessment system in such an environment.This paper which combined with China’s actual environment, referred to the relevant literature and research results of the credit risk evaluation of PE investment at home and abroad and established the PE investment risk assessment system. This paper analysis the credit risk in different stages of private equity funds and refines the influencing factor of the credit risk; And then, using qualitative and quantitative approach,combined with the analytic hierarchy process to quantify the credit risk of PE investment; Finally, with the relevant cases, the credit risk of private equity funds is empirically studied and the conclusion is drawn. Then the relevant suggestions are put forward according to the conclusion. However, in the research process,due to the limitations of information, data and experience,the findings have a certain degree of subjectivity. As for quantification of each index,is pending further research.