Discussion On The Investment Of Private Equity Fund In China

Since the introduction of private equity funds in China,after more than a decade,under the premise of China’s economic reform,private equity funds have been developed,investment continues to rise.China is gradually concerned about technological innovation,inspire talent to start business.As an investment tool to promote enterprise technological innovation,improve development ability and accelerate investment strategy,private equity fund can not only provide funds for enterprises,but also can reasonably link enterprises with social idle funds to become the promotion of national economic prosperity and development Quality tools.However,China’s fund investment market is very confusing,private equity fund management level,operational capacity are different.Many private equity fund management agencies,in the investment decision-making,management and management of no scientific procedures,the vast majority of fund investment management agencies rely on the previous market experience,the fund investment management team to rely on their own intuition to determine the project investment.However,due to the increasing amount of capital reserves,fund investment market competition is more and more intense,many fund companies only care about the risk of one or two fund market invasion,but value short-term interests,do not improve their management level,The operational capacity of the capital,to strengthen the business management of each stage and the subsequent management,will not always enhance the value of the enterprise,these relatively backward and failed management strategy can not match the current economic situation.At the beginning of this paper,the author analyzes the background and significance of the study of private equity funds,and reviews the relevant research on the investment of private equity funds by international and domestic scholars,and then introduces the related concepts and theories of private equity funds,combined with Hongta Hongtu Fund Company(hereinafter referred to as " "Hongta Fund")to invest in the case of A company,this article attempts to private equity funds from the concept and nature of the start,combined with the practice of Hongta Fund investment A company,before the investment,the investment company to conduct a full due diligence,and the investment The company to conduct a reasonable valuation;focus on the research fund investment process,that is,"investment,management,exit" three links,the use of innovative ways to strengthen the neglect of all the project selection and evaluation,investment management after the two links of thinking The Investment in the first red tower fundfirst of the A company in the financial aspects of market competitiveness,the company’s compliance management due diligence,in this article mainly from the above aspects to analyze the due diligence is not so comprehensive;Fund decided to invest in A company,the need for its management,the presence of relevant personnel into the top of the company A,and then plan its follow-up financing,the implementation of a certain strategic planning.After the completion of the investment steps,A company finally listed success,Hongta Fund from its listing to obtain a certain return.At the end of this paper,the case of investing in Company A from Hongta Fund has come to the conclusion that the fund company has reasonable investment.First,the company should determine the investment in all aspects of investment companies should take into account the various factors,taking into account the feasibility of the investment projects and the rate of return,careful investment,reasonable to determine the scale of investment.Secondly,the fund company should strengthen the management of the invested company after investment,analyze the operation status of the invested company,and set up the fund manager to join the invested company to help the investee company to go to the market.Finally,if the company determines the investment object,Should be reasonable to set the exit channel and choose a favorable exit time,in order to achieve the best investment results.It is hoped that these experiences will help private equity fund investment decisions and hope to benefit the healthy development of private equity funds.