Research On Private Equity Investment Risk Prevention And Control Strategies Of ABC Investment Company

Our country’s equity investment began in the 1980 s.In 1986,the National Science and Technology Commission and the Ministry of Finance jointly established China Venture Capital Corporation,which opened the prelude to my country’s equity investment market.Subsequently,foreign-funded institutions such as IDG and DGM entered the Chinese market,and the powers of state-owned and foreign-funded institutions were separated.Until the beginning of this century,due to the lack of experience of state-owned institutions,their business performance was relatively poor,while foreign institutions developed rapidly and occupied the dominant position in my country’s equity investment.However,the number of active investment institutions in my country’s equity investment market was only a mere 100.Since 2008,the economic landscape has changed as the emergency situation at home and abroad has changed.The rise of private local institutions ushered in the "golden decade".Later,with the promotion of the "mass entrepreneurship and innovation" policy,the reform of the New Third Board,and the landing of the Science and Technology Innovation Board,local institutions have obvious advantages.However,in recent years,the cooling of private equity investment,coupled with the slowdown of the economy and the introduction of "new asset regulations" to strengthen fund supervision,make private equity investment institutions face many risks.This paper analyzes the risks faced by my country’s private equity investment institutions on the basis of sorting out the research status at home and abroad and the concepts and theories related to private equity investment risks.Then it introduces the general situation and private equity investment process of ABC investment company,and on this basis,analyzes and summarizes the private equity investment risks of ABC company and the reasons,and finds that there are various lack of attention to risk control,risk control personnel Insufficient equipment and capacity,lack of internal audit and other issues,and analyzed the staged risks of ABC investment company in private equity investment.Subsequently,the article put forward suggestions for ABC investment company’s private equity investment risk prevention,including establishing a risk control responsibility system for the board of directors,incorporating risk information into daily decision-making procedures,establishing and implementing an accountability system for investment projects,and strengthening team building to improve risk control capabilities.The operation of the importance of risk control work;and the optimization and establishment of key risk indicators;for the risks in different investment stages,the industry benchmark Kunwu Jiuding’s private equity investment experience and private equity investment risk prevention and control experience,put forward corresponding risk prevention and control.methods and recommendations.