Study On The Strategy Of Private Equity Fund's Participation In Private Placement

In recent years,with the release of private equity funds from private placements,it has become increasingly common for individual investors to participate in private placements through private equity funds.The key to the profitability of private equity investment is to find high-quality target companies with development potential.Companies provide opportunities for investment in private equity funds,and the development of private equity funds in turn affects the growth of companies.This article mainly adopts the combination of normative research and empirical analysis,and studies the strategy of private equity funds participating in private placement.This paper firstly defines the concept of private equity funds and private placement,and then sorts out the relevant theoretical foundations of this paper,including information asymmetry theory,information transfer theory,price pressure hypothesis,and supervision theory.Then,based on the analysis of the characteristics of the private placement of listed companies in China,the findings of the increase in listed companies in China were clarified and the problems with the private placement of listed companies in China were revealed.Finally,a case study of the investment increase project of A private equity fund company was launched.The research conclusions of this paper conclude that there are three issues in the directional increase in the issuance of listed companies in China: stock price manipulation and interest transfer,over-financing,arbitrarily changing fund investment,and unbalanced refinancing structure.The private-equity fund's participation in targeted issuance has a simple approval procedure and accelerates enterprises.There are three advantages in the transformation and upgrading and improvement of the equity structure of the company.Therefore,private equity funds participate in the private placement program is of great significance;based on the case study of the private equity fund A participating in the B fixed increase project,this paper believes that the private equity funds participate in the investment of the fixed increase project.The strategy should start from the four aspects of industry fundamental research,market growth research,stock analysis and risk analysis.Regarding the countermeasures for the private equity funds to participate in the private placement,this paper believes that the first is to improve the pricing mechanism,the second is to improve the assessment quality of injected assets,and the third is to strengthen corporate governance.