Risk Assessment of Private Equity Investment Project Based on Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation: A Case Study on 3 Private Equity Investment Projects

The risk assessment of a private equity investment project is the basis of private equity investment decision-making. Through the identification of risk factors of private equity investment projects, on the one hand, a weight system on risk factors by the analytic hierarchy process is studied, on the other hand, the degree of the riskiness for each the risk factors by the fuzzy comprehensive evaluation is evaluated. Further, using the questionnaire data from decision makers in the private equity investment industry and the managers of three real projects in three different industries respectively (an agricultural project, an electronic project, and a nonferrous metal project), the corresponding (relative) risk assessment is given, thereby validating the applicability of our method, which combines the analytic hierarchy process and the fuzzy comprehensive evaluation to conduct risk assessments of private equity investment projects.