Research On Investment Valuation Of Private Equity Fund Projects

With the rapid development of private equity funds,the scale of fund management and the amount of project investment are constantly increasing,providing investors and enterprises with good investment and financing channels,and improving the quality and efficiency of financial supply.However,private equity funds still have some irregularities in their investment activities.Therefore,the professional valuation of the target enterprise has become an important link in the investment operation process of private equity funds.Based on the theory of private equity investment and basic valuation theory,this paper uses literature research,comparative research and case studies to study the fund's investment process in the fund investment process.A fund has three problems in the case valuation process: Firstly cyclical industry volatility,not considering the industry cycle stage and the extent of impact.Secondly the internal and external uncertain factors are complex and diverse,and the valuation method is single.It is necessary to quantify and analyze the main factors in combination with multiple valuation methods.Thirdly no reasonable valuation adjustment has been made for the special issue involving control premium and market liquidity discount.According to the problems found in the case analysis,this paper adjust the original valuation model by constructing a valuation adjustment model that introduces scenario analysis,combining various important influencing factors and event probability.Through case analysis and adjustment of model test summary,it is concluded that the scenario analysis method improves the traditional valuation method and can q uantify the impact of uncertain indicators on the valuation.Moreover,the difference between the test results and the A project's three project investments has a certain degree of overestimation or underestimation,and it is necessary to carry out risk co ntrol and transaction mechanism supplement adjustment in the investment management process.At the same time,it is necessary to clarify the number,characteristics and probability of future scenarios,and to construct a future basic scenario that is close r to the target company,which can significantly improve the rigor and reliability of the valuation.Finally,based on these three conclusions,this paper also proposes rationalization for the valuation of private equity funds in investment practice.