Research on the Evaluation of Private Equity Fund Investment in High-tech Introduction Projects

Abstract

In order to make PE (private equity fund) evaluate and select appropriate projects more effectively and scientifically, combining the researches of scholars and the incisive viewpoints of senior practitioners, a scientific evaluation index system of high-tech projects in the starting-up period is established. Based on the Analytic Hierarchy Process, this study determines the weight of each evaluation index, and constructs the linear evaluation function to invest in the high-tech introduction period. Then, according to the evaluation score of the investment project, the investment company judges whether the pre evaluation project is passed or not. If the pre evaluation project is passed and its valuation is accepted by the director of Investment Decision Committee (IDC) or the representative of state-owned stock in IDC, then the IDC will vote on whether to invest the project. The result shows the application of the investment evaluation index system to predict the investment project is consistent with the reality. The researchers hope the evaluation system and its criterion can bring valuable reference for the screening projects of small and medium-sized private equity, and provide basis for the final investment decision-making direction of private equity fund.