Private Equity Investment Projects Selection Based on Grey Relational Analysis

This paper builds a private equity investment projects selection evaluation model base on risk-weight investment return using grey relational analysis. The risk and return in private equity investment projects selection process is analyses. These risk and return mainly constricted in management, operation, strategy, transaction and investment cost. The 18 sub-indicators such as quality of management and key staff, information management and reporting, expense management, input-output ratio, asset structure and so on are the impact factors contributed to these five evaluation aspects. Grey relation analysis is use to evaluate the private equity investment selection. Get the optimal solution of risk-weight double objective investment selection evaluation model. An example is used to demonstrate the model in this paper.