Research On The Valuation For Investment Projects Of Private Equity Funds

Private equity funds play a positive role in the establishment of a multi-level capital market,promotion of national economic restructuring and industrial upgrading,support for innovation and entrepreneurship,boosting the development of high-tech and high growth enterprises and other aspects.As a newly arising business on the background of financial innovation,a lot of below standards issues still exist in the investment valuation of private equity funds,such as blind pursuit of pre-IPO companies,neglect in consideration for fair value of invested companies,which lead to exorbitant prices and hidden risk.And many investment withdrawals missed their best opportunities as the lack of appropriate subsequent valuation during the post investment period.Therefore,the valuation of investment projects has come into a particular concern of the private equity funds.In this thesis,valuation methodologies on investment projects of private equity funds will be carried out an intensive study in use of economics theories,to adopt various analysis methods,such as contrast,demonstration and induction etc.,depends on the theoretical basis of private equity funds.Comparing different valuation methodologies,it is concluded that the application of combining market approach with the qualitative analysis and index revision of target and comparable companies is an appropriate and most practical valuation methodology for private equity funds investments,valuation results is more objective than other approaches,and more appropriately reflect on the financial position and operating results of private equity funds.This thesis takes the practice of A private equity fund as an example,the conclusion is drawn that the market approach can meet the demand of the investment valuation of private equity funds through the case analysis of investment projects.It puts forward some suggestions to solve existing valuation problems in this thesis.And it aims to solve those current difficulties commonly faced by the private equity funds managers through the practical and referential insight in the research on the investment valuation theory of private equity funds.