Analysis On The Influencing Factors Of Investment Return Of Real Estate Private Equity Funds

The private real estate funds have risen rapidly and have become an important supplementary form of traditional financing.While the private real estate funds is booming,its rate of return has become the focus.Because of the non-public and asymmetric information in the primary market,the authenticity of the expected return given by the estate fund is the key for investors to judge and select funds.There is a lack of analysis of the factors affecting the fund's return,as well as the disclosure of real cases and the process of combining with evidence.So identifying the factors affecting its rate of return,exploring the impact of fund factors on expected return and actual return,and analyzing whether the expected return can effectively represent the true rate of return,is the key to enhancing investor confidence.This paper analyzes the factors affecting the investment income(IRR)of private real estate funds.In theory,this paper firstly analyzes the conceptual classification,characteristics,current situation,development trend and the problems of investment income of private real estate funds in China.Secondly,according to the grey relational theory and the weighted TOPSIS model,the factors of investment income are sorted.In empirical research,this paper selects 1069 real estate equity private fund data in 2010-2019,selects the top 12 factors with an important degree of 0.6,and uses the “expected rate of return(ER)” as an intermediary factor to study the positive and negative impact of each factor on ER and IRR.The mediation effect test is performed by the Bootstrap method.The research finds that all factors of the fund have an impact on IRR,among which the real estate cycle,investment territory,fundraising scale and managerial professional literacy enjoy the greatest impact;ER is positively related to IRR so that the future investment performance of fund can be judged initially through ER;ER has a mediating effect between fund factors and IRR,while fund companies still need to improve their moral standards and credibility.In case study,this paper starts with high-return T project,analyzes its specific project characteristics,fund plan,fund structure,counterparty,etc.,and focuses on refining the various elements of the fund.With the evaluation index system,benchmarking various factors carries out the investment performance of T-project.In addition,this paper also proposes some policy recommendations to optimize the fund structure,improve the rate of return,and avoid operational risks.