Risk Assessment And Control Of Private Equity Investment

With the development of the modern economic system led by the policy of mass entrepreneurship and innovation,a large number of small and medium-sized enterprises have been born,and the problem that the traditional financing methods cannot meet the growing capital needs has emerged.Private Equity(PE)investment plays an important role in financial supply-side structural reform,serves real enterprises,stimulates market vitality,effectively alleviates financing difficulties of small and medium-sized enterprises,and promotes steady progress of the national economy.However,due to the short development history of PE in China,it lacks experience in the formulation of relevant laws and policies and the supervision and management of the government.With the characteristics of investing in many start-up companies and a long investment cycle,investment risks run through every link of PE investment projects,and whether risks can be controlled and reasonably avoided determines the success or failure of investment projects.With the obvious reform trend of high-tech manufacturing industry in China,urban rail transit industry has become the vane of PE investment in China.It is of great practical significance for the development of PE and the structural optimization and upgrading of urban rail transit industry to study the PE investment risks of this industry.This paper aims to study the risk assessment and control of PE investment in high-tech manufacturing enterprises.Based on the relevant theories covered in private equity investment and the operation characteristics of PE investment,a comprehensive risk factor system is established from the external environment,financing enterprises and investment institutions.Based on the specific risks found in the actual plan of ZF capital to invest in H electric company,the risk structure model was established and the weight was determined by using the fuzzy comprehensive evaluation method and analytic hierarchy process,the risk score was determined by the expert group decision,and the result of risk evaluation was obtained by the fuzzy synthesis to decide whether to invest or not.In addition,the control measures of ZF capital investment risk are put forward from the three stages of pre-investment,in-investment and post-investment.At last,it summarizes the research results and puts forward some Suggestions for the development of private equity investment.The purpose of this paper is to according to the research achievements in related fields at home and abroad,on the basis of in view of the current situation of the development of domestic private equity investment,through the establishment of private equity investment risk evaluation system and evaluation method of application,provide theory basis for private equity practice and operation method,in order to the good development of private equity investment in our country and other institutions of PE investment in high-tech manufacturing enterprises to provide the reference to the risk control experience.