Research On Value Assessment Of Private Equity Fund

In 1999,with the International Financial Company(IFC)formally became a shareholder of the Bank of Shanghai,private equity investment model enter China formally.In recent twenty years,the number of China's private equity investment firms have increased from initial several to thousands.China's private equity industry drive the rapid expansion of the entity industry,then make the stock valve have risen sharply,and the number of investment and exist case jump up year by year,China's private equity market has become one of the world's most active equity investment market.This will cause the most investors focus on private equity funds,they need to understand the value of private equity funds before the investment.Not only the investors,but also a growing number of limited partners of private equity have developed the private equity fund in the secondary market in order to promote the liquidity of funds,then transfer of share of funds is needed a perfect valuation pricing system.Because the time of development is short and the system is not perfect,the risks increased,the research of the value of private equity fund seems particularly urgent.Therefore,this article do some research to analyze the valuation pricing problem of private equity fund.This article first simply present the characteristic of the private equity fund,find the factors that need to pay special attention during the valuation.Then compare private equity fund and security investment funds,find that the investment targets and the organization and the operation of mechanism is different in many aspects.So we can't simply use the valuation method of securities investment funds to valuate private equity funds.Private equity funds should have a new valuation model that in accordance with its features and have perfect valuation factors.Combining with the experience at home and abroad,this article builds a new model that is suitable to China's private equity funds.The new model is made up of four parts.The first two parts is the emphasis of the entire model,respectively are the valuation of invested project and the valuation of committed capital that not invested.In the valuation of committed capital that not invested,this article added value-added coefficient,and do the corresponding empirical analysis.In the last two parts this article make a simple narrative about the future cost of fund and the fund debt.At the end of this article,the summary of the whole text have been given and point out the shortage and the improvement suggestions.