The Impact of Private Equity Fund Investment: Risk and Value-added Service on Enterprise Performance in Real Estate Industry

Xin Zhang

《Frontiers in Economics and Management》 3卷6期 (2022/06) Pp. 343-348

https://doi.org/10.6981/FEM.202206_3(6).0042

摘要

For private equity financing enterprises, we should first understand the PE profit model and operation style, and do not blindly finance; Secondly, at present, Chinese enterprises can consider introducing state-owned PE and non-state-owned PE joint investment; Third, in view of the general adverse selection effect in China's PE market, high-quality enterprises should prove their quality through ＂signal effect＂ or information disclosure; In addition, although PE shares bring financing convenience, enterprises should not over finance, otherwise it will affect business performance. For equity fund investors, we should realize that the high return of IPO Exit of PE investment projects is obtained at the cost of bearing a great exit risk; It should be recognized that there are differences among PE Institutions. For example, PE invested in stages often has stronger value-added ability and greater influence in the state-owned PE market. Third, we should try to restrain PE from over financing investment enterprises. For private equity investment institutions, they should choose to cooperate with complementary PE Institutions.

關鍵字

Private Equity Investment ； Business Performance ； Market Performance ； Institutional Differences

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