The Research On Investment Risk Management Of Private Equity Funds

Since the private equity fund entered China,it has achieved tremendous development,its scale has been rising,and the amount of investment has become larger and larger.Private equity funds can provide capital for SMEs and promote the development of the country's "popular innovation,entrepreneurship." However,the investment risk of private equity funds is huge.There are various internal and external risks in all aspects of fund investment.These risks will have a significant impact on the normal investment and investment income of private equity funds.Therefore,accurately classifying investment risks and adopting a scientific risk management strategy is an important part of the current private equity fund industry management.This paper starts from the problems existing in China's current private equity fund investment,studies the main risks and their causes,expounds the necessity of risk control,and studies how to construct a risk control system and prevent risk aversion.The paper believes that due to the short development time of China's private equity fund industry and its rapid growth rate,there are many risks in the investment process.The current risks are mainly classified into external risks such as national policies,laws and regulations,and financial markets,as well as internal risks such as operations,credit,and operation management.The main types of investment processes include project selection,investment process,post-investment management,and investment exit.Risks,which are mainly caused by information asymmetry,principal-agent problems,inadequate legal supervision and imperfect systems,and lack of standardized management systems and structures.This paper establishes a risk evaluation system based on the risk classification based on the combination of quantitative and qualitative methods,and uses the analytic hierarchy process to evaluate the investment risk of private equity funds,and obtains the weight of the private equity fund investment evaluation index system,and uses fuzzy comprehensive evaluation.The method quantitatively analyzes the risks of multiple projects in different industries,and obtains the risk values of several different projects and compares them,thus providing corresponding support for the investment decisions of private equity funds.This paper also studies the actual risk case of Wufeng Agriculture and analyzes the problems existing in the current private equity fund investment risk management.In view of the main risks existing,this paper puts forward some constructive opinions and countermeasures through the government supervision level,the internal level of the organization and the investment process level.At the government level,the external environment of private equity fund investment should be optimized,mainly in optimizing laws and regulations,improving the supervision system;strengthening industry management,raising industry thresholds;enriching investment varieties and establishing multi-level private equity fund capital markets.The institutional level mainly focuses on strengthening research and early warning of macroeconomics,industry and industry,policies and regulations to prevent external risks;in addition,it should also conduct investment tracking management,establish investment work standards,strengthen incentive and restraint measures,optimize internal control,and conduct regular Prevent internal risks in financial assessment and strengthening corporate strategic management.Finally,it is necessary to strengthen the risk control of the private equity fund investment process,including pre-investment,investment and post-investment risk control,thereby further improving the private equity fund industry risk control system.