I. Provisions on Valuation of Private Equity Investment Private equity investment (also known as PE) refers to equity investment in private enterprises, that is, unlisted enterprises, through private placement. In the process of transaction implementation, the future exit mechanism is considered, that is, selling shares through listing, mergers and acquisitions or management buyback to make profits. Equity investment conforms to the trend of social development and has the following development values: it helps to reduce the transaction cost of investors. According to the contract theory of modern economics, as the basic unit of economic activities, transactions have costs or costs. The so-called transaction cost is the price or cost that the economic system needs to pay. As far as investment activities are concerned, huge risks and uncertainties are often accompanied, which makes investors pay the cost of finding, evaluating, verifying and supervising. As a collective investment method, private equity investment fund can share transaction costs among many investors, so that investors can share economies of scale and scope. Compared with direct investment, investors can get the benefits from the transaction cost sharing mechanism by using private equity investment, which is the fundamental reason for the existence of private equity investment. It is beneficial to solve the problem of adverse selection caused by information asymmetry. There are many information asymmetry problems in private equity investment activities, which run through various links such as project selection before investment and supervision and control after investment. As a professional investment institution, private equity investment fund can effectively solve the problems of adverse selection and moral hazard caused by information asymmetry. Managers of private equity investment funds are usually composed of elites in industry and finance, who have considerable professional knowledge and experience in specific industries. They have strong computing and cognitive abilities in a complex and uncertain business environment, can have a keen insight into the risk probability distribution of investment projects, and have strong information search, processing, processing and analysis abilities in the preliminary investigation and management of investment projects, so as to minimize information asymmetry and prevent adverse selection. Compared with the shareholders of ordinary companies, the shareholders of private equity investment companies can more accurately understand the advantages and potential problems of enterprises, provide a series of management support and consulting services for enterprises, and realize the maximum value-added and benefit sharing of enterprises. In this way, the institutional arrangement of private equity investment effectively solves the problem of entrustment or agency, which is another reason for the rapid development of private equity investment. Modern financial economics believes that portfolio can reduce the non-systematic risk of economic activities, thus becoming an important means of risk management. But for a single investor, diversification will bring additional costs to investors. For example, investors may have to reduce the proportion of investment in an enterprise, thus weakening their control over the enterprise, or they will have to spend more energy and cost to supervise and manage different investment projects. Private equity investment funds adopt the way of collective investment, and spread risks by investing in projects at different stages and in different industries. Therefore, investors can not only enjoy the benefits of cost sharing, but also share the benefits of diversifying investment risks and gain added value. With China's proposal to deepen the reform of multi-level capital market and standardize the development of regional equity market, private equity investment funds have become an indispensable investment method in China's asset allocation, which has largely solved the problem of unbalanced financing structure in China's economic development. What are the rules for the valuation of private equity investment with broad development prospects? Regarding private placement, this content is very strange to everyone. The main body is some private enterprises, that is, private enterprises that have not passed the listing. In private financing and investment in other industries, shares and equity are very important contents of the company.