Private Equity Investment Fund Project Operational Risk Research

Private equity(PE),by means of non-public to raise funds,equity investment in non listed enterprises,and actively promote the development of enterprises,and finally use IPO,sale,etc.to exit from the proceeds.In our country,private equity investment is narrowly defined as the main investment in the expansion and maturity stage of the enterprise,to distinguish from venture capital(VC).Private equity investment fund project operation process usually includes: 1,project evaluation and selection;2,management and management of investment projects;3,investment exit.In view of the private equity investment itself has a high risk,not open,opaque,long-term holdings and other characteristics,each link in the operation of the project may have the possibility of failure,contains a huge risk.It is necessary to strengthen the risk management of the operation of the private equity fund project,as much as possible to reduce and avoid the risks in the operation of its project.This paper introduces the concept of private equity investment funds,the development of the status quo,and the study of private equity investment fund project operational risk significance.And studied a large number of domestic and foreign private equity funds on the risk prevention and control of the literature,based on the basis of the operation of private equity funds from the point of view,the process of the existence of the project to choose the risk,the risk of agency and exit risk Analyzes and studies,and puts forward a reasonable evaluation and risk reduction model to achieve the purpose of this paper.For the project to choose the risk,because the risk assessment is based on data,model,subjective and objective understanding,analysis and comparison of risk factors,the final risk assessment of the scientific decision-making method.Therefore,it is very important to choose a scientific approach to assess and screen the risks of investment projects reasonably and effectively.This paper establishes a reasonable and representative private equity investment fund project to select the risk assessment index system,and combines the qualitative analysis and the quantitative analysis,uses the fuzzy comprehensive evaluation method and the analytic hierarchy process to construct the mathematical model for the project investment decision for reference.Finally,it also analyzes the risk constraint mechanism in the selection of private equity fund.For the risk of principal-agent in project management,because the private equity investment fund and the invested enterprise respectively as the principal and the agent,the interests and objectives between them are not exactly the same,there is the risk of principal-agent.Therefore,based on the analysis of agency risk,using game theory,design a suitable incentive and control mechanism,to establish the principal agent game model of incentive and constraint,to effectively reduce the principal agent cost and avoid the entrusted agent risk as much as possible.Finally,this paper also analyzes the risk constraint mechanism in the management of private equity fund.For the exit risk of the project,this paper lists the various ways of exit of the private equity investment fund,compares the characteristics and risks of the exit method with the comparative analysis method,analyzes the factors influencing the exit mode and exit timing of the private equity investment fund by factor analysis the elements of.And the real option theory is used to establish the selection model of the timing and exit mode of the private equity investment fund.