Research On Project Investment Risk Management Strategy Optimization In J Fund Company

SME is very important in the development of economics and society.The emergence and development of private equity investment has brought new opportunities for SME financing.Private equity fund invests in the companies,then cultivates and manages them,finally exits.Private equity fund can promote development of SME,such as enterprise transformation,ownership restructuring,and asset reorganization.However,there are some risks involved in the operation of private equity funds.Private equity investment itself has the characteristic of opaque and non-disclosure,which makes it face many risks in its operation,and risk control is of significance in private equity investment.Meanwhile,owing to the fluctuation in financial market,the increasingly complex competition and the weak investment environment,the choice of investment target is more and more difficult.Therefore,the private equity fund has the huge risk in the investment process.Domestic private equity funds have failed to invest in many cases,so it is necessary for private equity fund companies to increase risk prediction and risk control ability in the investment management.It is useful for private equity fund to take good use of the risk control strategy under studying and analyzing the investment risk of private-owned companies.Private equity investment is beneficial for entrepreneurial companies to provide entrepreneurial and sustainable development of funds,which is conducive to industrial upgrading,structural adjustment and improve employment.As a high risk and high return of the industry,private equity funds in the operation can face greater risks,thus the investment risk management and risk assessment is very necessary.The paper takes J Fund Company as an example to analyze the risk of project investment.After analyzing the risks existing in the process of selecting,negotiating and managing projects,the research comes up with the risk control method to improve the risk coping ability.J Fund Company is a private equity investment fund company.However,there are some risk and problems in the investment process of J Fund Company.The research finds out that the risk as follows: inadequate research,weak legal wind control system,lacking of continuous and comprehensive monitoring after the project management.The research provides the certain risk management optimization strategy after analyzing the present situation and the risk condition of the J Fund Company.Then the research points out a safeguard measure,which is advantageous to enhance the investment management ability and the development of J Fund Company.The research can provide some reference for the investment risk management of Chinese private equity investment funds.