Forecast model for the development of financing of agricultural sector companies through private investment funds

Abstract

The article presents the problems of development of the private equity fund market in Kazakhstan, examines the current structure of the private equity fund market and its main participants; the impact of private equity fundson the performance of companies in the agro-industrial sector is discussed. The purpose of the work is to obtain a quantitative assessment of the company’s performance through its investment by a private equity fund based on the use of economic and mathematical modeling. Private equity funds, entering the share capital of the invested company, not only bring material investments, but also improve the company’s management. The paper highlights factors that influence the efficiency of the invested company the introduction of corporate governance practices, systematic risk management, and the quality of human capital. Based on economic and mathematical modeling, a quantitative assessment was made of the impact of cooperation of a private equity fund on the company’s financial performance operating profitability and return on equity. The increase in the estimated operating profitability in the post-investment stage proves the authors’ hypothesis about the positive impact of private equity funds on the company’s performance.