Study On Investment Project Selection Strategy Of H Private Equity Management Company

With macroeconomic and industrial restructuring,as well as changes in China’s market environment,the interface between the capital market and technology investment needs to be accelerated,and the development of the private equity industry can effectively meet these financing needs.The private equity market provides financing and value-added services to new venture capital companies,as well as underwriting and risk diversification in the private equity market.Private equity investments are made in the form of shares,with relatively few restrictions on the average size of the financing and the qualifications of the companies.Investment targets are mostly small and medium-sized high-tech companies with good prospects for future capital investment,and investment returns are derived from dividends or additional gains on the sale of shares,resulting in a diversified equity structure.The growth of private equity has slowed down in recent years due to the impact of the Novel corona virus pneumonia,but is broadly stable.As private equity projects are characterized by long time horizons and large sums of money,investments are often high-risk,which means that investments carry risks.Investment teams that make prudent decisions and select efficient projects are a prerequisite for better returns,so it is particularly important to study the selection ring strategy of fund investment projects.This paper focuses on the analysis of the X project invested by H Private Equity Investment Management Company and the Y project terminated from investment,combining with the case data,mainly from the management team,industry situation,business model,product characteristics and financial data,and finds that the current investment project selection strategy of H Company has the problems of low decision-making efficiency,high cost of screening high-quality projects,and asymmetric information,It is also difficult to find high-quality projects due to investment geographical restrictions,policy restrictions and other reasons.There are not enough professionals,and the current project selection criteria are not comprehensive enough.In order to ensure the effectiveness of project selection and improve the investment ability of Company H,Company H should study and judge the project selection process on the basis of improving the efficiency of fund market-oriented operation,pay attention to the project information source,further deepen the understanding of investors about the target project through intermediaries,pay attention to the company’s investment voice,clarify the status of investment subject,improve the professionalism of business personnel,and constantly improve and optimize the existing project selection criteria,Determine which projects need to be followed up and which projects need to be avoided.This paper aims to provide guidance for the project selection behavior of H Company and help H Company grow through the above suggestions for improvement of project selection strategies.