PE is becoming a new impetus for enterprise's growth

Information Times News (reporter Ye Jing) The latest survey published by the Kyoto Huatian accounting firm shows that the private equity investment industry (PE) is becoming the most powerful catalyst for the rapid growth of emerging companies. The industry was often criticized for its lack of transparency and the overuse of sophisticated financial instruments in the early stages of the financial crisis.　　After the financial crisis, PE pays more attention to the performance growth of the investment enterprise and the standardization of corporate governance, and pays more and more attention to the deep participation in the enterprise's governance. While the global economy has been hit hard by factors such as the European debt crisis, the private-equity industry is still feeling more optimistic. About 60% of the world's private equity funds believe investment activity will increase in the coming year.　　In the BRICS, including China (Brazil, China, Russia, India, South Africa), private equity funds are more optimistic about next year's investment, and 94% of fund managers say they will increase or sustain their current investment activities next year.　　Of the world's PE practitioners surveyed, nearly 44% per cent of the respondents believed that the growth in investment value depended mainly on the performance growth of the investment companies, while only 2% per cent chose financial leverage and financial instruments. To help the companies that they invest in achieving growth, PE investors are increasingly involved in specific business development. 22% of respondents want to be involved in more business in the future.　　In the company management, PE investors most want to participate in the company's strategic development, financial planning and human resources development, the proportion of 46%, 35% and 30% respectively. Liu Dongdong, a partner in the mergers and acquisitions support services of the Kyoto Huatian accounting firm, believes that in China, private-equity funds cannot rely solely on arbitrage patterns to achieve returns, and they need to help companies achieve substantial growth, such as improved performance and management teams. This is also the demand of investors.