693 Generation PE Report: 466 5 Year Zero Investment

In 2009, China's PE also ushered in the "universal PE" Carnival, and climbed the peak of the industry in the first half of 2010 and the first half of 2011. The domestic PE fund generally has a duration of 5+2 years, that is, after the capital investment project is locked up for 5 years, the specific circumstances of the project may be extended for another 1-2 years. According to the rules of the "5+2" game, the PE fund raised in 2009 will be the last year of the agreed period.

　　 "Gen PE"

According to the financial data on the grid, in 2009, a total of 693 VC/PE institutions (most of the main resources were invested in PE business) were set up in 2009 by the east wind of the gem, which can be said to have been established by the gem in.2009. Generation generation "

This year, not only did securities companies set up their own direct investment companies, such as Yuan Yuan direct investment, Galaxy innovation capital, investment Zhiyuan capital, Bank of China International Investment, etc., state-owned enterprises, large private enterprises and so on also set up their own VC/PE institutions, such as State Development Investment Corp controlled shares of national investment innovation, TCL Group Holdings TCL venture capital, seven wolf group holding seven wolves venture capital, Lenovo holdings established Beijing legend star venture capital company, and other well-known investors and ordinary natural persons have created their own PE institutions, such as Li Kaifu founded the Innovation workshop.

In addition to domestic enterprises, some sharp eyed foreign investment institutions also set up domestic PE in 2009, such as world-renowned institutions and enterprises, such as blue oak capital, Huaying capital, Google, Infiniti, Qingfeng capital, and so on.

From the site selection, Beijing, Shanghai, Shenzhen and other first-class cities with various resources are still the favorite of PE. Data show that 5 years ago, 166 investment institutions were set up in Beijing, and 119 in Shanghai and 53 in Shenzhen. Roughly calculated, 3 first tier cities occupy almost half of the "gen VC/PE". In addition, there are more than 20 cities in the "generation" VC/PE, including Hangzhou, Suzhou and Tianjin, 38, 28 and 25 respectively.

In keen industries, many "gen VC/PE" have a common interest. Statistics show that over the past 5 years, IT, biotechnology, clean technology, TMT, e-commerce, real estate, environmental protection, medical and health care, education and training, energy and minerals and other popular industries have attracted a lot of PE.

Regardless of the number, region or background of shareholders' diversification, PE has gone through a crazy growth since 2009. 5 years later, many of those who dream of becoming rich overnight were disappointed.

Data show that only 227 of the 693 "generation VC/PE" had investment events, accounting for about 33%, while the remaining 466 "gen PE" were "zero investment".

Among the above 227 investment generation VC/PE, the largest investment event was the Innovation workshop established by Li Kaifu in September 2009, with 93 investment projects far ahead of other institutions, followed by Guangdong integrated Fuda investment and Lenovo star, with 37 investment events; and 30 more investment events, including China investment capital, Mingjun capital and Mingshi investment, with 36, 32 and 30 investment events respectively.

Secondly, there are 6 investment events, 20-29 are the 24 capital of the Yi capital, 24 are the Everbright financial controls, and the 22 are six treasure (Beijing). In addition, there are 20 investments in Guangyi, silver and Sai, and there are 24 institutions in 10-20 events, such as TCL, 18, Sichuan, and Vietnam.

There are 0-10 investment events in 191 institutions, of which Jinshan capital, state finance and Nong Tian capital are 9, and Maohu capital, CO investment and Vietnam venture capital are 8.

　　 Exit rate 11.66%

PE insiders generally believe that an investment project needs at least 3 years to quit successfully, usually about 4 years.

Therefore, the "gen VC/PE" organization is also facing another embarrassment: the exit time of investment projects should be concentrated in 2012 -2014, but in November 2012, December, IPO experienced the longest "freezing period" in history, so that the expected withdrawal period of PE investment was extended.

Foregoing data It shows that only VC/PE has 1/3 investment projects established in 2009, and if it is considered again, it will be more "bleak".

After combing with reporters, only 74 of the 227 investment institutions successfully withdrew, accounting for about 33%. The 227 investment institutions had 1226 investment events and 143 quit, accounting for 11.66% of the total investment events. That is to say, on average, only 1 projects of every 227 investment projects have been successfully withdrawn from each of the 8.6 projects, and the other 7.6 projects are either waiting for exit or waiting for liquidation.

Fan Hui, an investment partner and executive vice president of the east coast, pointed out that the main reason for the low exit rate of VC/PE institutions established in 2009 is the longest IPO suspension in history. Another important reason is that the economic environment has not improved significantly, and the performance of investment projects is not good enough to achieve the exit conditions.

"PE generally has a repurchase clause. If the project fails to meet the expected withdrawal from the project, it will first strive for a major shareholder to repurchase. If there is no real repurchase, GP will have to consult LP to see if it can be postponed for 1-2 years when the fund expires." Fan Hui said that the worst solution is after the project is liquidated. LP According to the share of investment, the natural person shareholder of the project.

Although the overall exit rate of "gen VC/PE" is not high, there are still many institutions "stand out". For example, Guangdong integrated Fuda investment in Foshan, founded in December 2009, has 37 investment events and 11 quit. It is the largest number of VC/PE withdrawn from the same age group. The Shenzhen and Guangdong growth Vc firms, founded in April 2009, is the largest IPO exit rate and exit number in the "gen IPO". Up to now, it has invested 7 projects, and has achieved IPO exit.

　　 "30" company

In the process of combing the investment and exit of the "VC/PE generation", the reporters can not ignore: 5 years later, some "generation VC/PE" or "zero fund" or "zero investment" or "zero exit". Even more, some institutions are still in the "30" state.

Data show that 693 of the 5 year old VC/PE, 474 of which have not yet set up funds, 466 of which have no investment incidents, and 617 have not withdrawn from the project. Among them, 379 VC/PE 5 years old are in the "30" state of "zero fund", "zero investment" and "zero exit", accounting for 55% of the total number.

"These types of companies should be short companies." A related person in charge of the China Equity Investment Fund Association told reporters that last year, the association and the relevant departments conducted a round of risk investigation on the registered PE in Beijing, and found many chaos. Some in the name of fund companies, there was no business. They disappeared after a year. Some were illegal fund-raising, they ran away with money, some were short companies, and they did not invest in their main businesses. Others were unable to raise funds until they had been unable to raise funds.

"For" 30 "PE also depends on shareholders' background, otherwise it will not survive at all. Some of the large shareholders of such companies have other industries, supplemented by investment, and the personnel of investment companies may also rely on other industries. If they encounter a good project, they will go on to do it, and they will not survive. " Fan Hui said.

According to the data, 88 of the "VC/PE" agencies have raised a number of funds, but both the investment and exit projects are 0..

"If it is not easy to raise funds, the company will not survive. On the contrary, it is a little more troublesome to deal with the PE that has been raised, so we need to liquidate the fund. A senior investment manager of a PE in Beijing said that the normal PE fund usually has a bottom guarantee agreement. Even if LP fails to invest, the worse result may only get the 40%-50% of the principal.