The Fund-Raising Amount Of New Development Fund Dropped 67.6% Month On Month: The Polarization Of Equity Investment Industry Continued To Ferment

With the continuous improvement of China's economy and the prominent profit-making effect of enterprises listed on the science and technology innovation board, the domestic equity investment fund-raising market is continuously improving.

On December 17, the latest statistical data released by the private equity link of Qingke Research Center showed that a total of 311 funds were raised in the domestic equity investment fund-raising market in November this year, with a year-on-year increase of 82.9% and a month on month increase of 53.2%; among them, 310 funds that disclosed the amount raised raised raised a total of 104.987 billion yuan, up 19.7% year-on-year and 34.6% month on month.

It is worth noting that the number of new funds has increased sharply, while the average amount of fund-raising has dropped sharply.

According to the data, 112 new funds were set up in November, up 45.5% on a month on month basis. Among them, 25 newly established funds that disclosed the target scale planned to raise 25.504 billion yuan, but a sharp decrease of 67.6% on a month on month basis.

A partner in the field of fund-raising of equity investment institutions admitted to the reporter that behind this was the "supervision and management measures for sales agencies of public securities investment funds" (hereinafter referred to as "management measures") stopped independent fund sales agencies from selling private PE products on a commission basis, making most equity investment funds feel the pressure of fund-raising.

"Now we can only rely on PE fof issued by independent fund sales agencies to raise funds in disguised form. Specifically, PE fof will complete the fund raising first, and then provide funds to their newly issued funds in the form of investment in sub funds." He told reporters. However, due to the limited amount of PE fof investment sub fund, it is still unable to meet the fund-raising target of the newly issued fund.

The reporter learned from many sources that in order to restart the business of selling private PE products on a commission basis, some independent fund sales agencies (mainly the third-party wealth management institutions) suggested to the relevant departments whether they could carry out hierarchical management on the independent fund sales agencies, that is, to adopt more strict control standards for the independent fund sales agencies involved in the sale of private PE / VC products, including requiring the latter to report to the regulatory authorities and banks on a monthly basis At the same time, independent fund sales agencies also need to draw a certain proportion of risk reserves to make up for the related risk losses.

In the view of many PE industry insiders, another reason for the sharp decline in the month on month ratio of the newly launched fund-raising funds is that the polarization of the equity investment fund-raising market is still serious, that is, the top PE / VC companies in the industry are not poor at all, but most of the small and medium-sized PE / VC funds are rarely attracted.

According to Qingke data, there were 24 large-scale PE / VC funds that raised more than 1 billion yuan in November, raising about 60.515 billion yuan, accounting for 57.6% of the total amount raised.

"This is bound to accelerate the survival of the fittest process of domestic GP." The partners in the field of fund-raising of the above-mentioned equity investment institutions said. If the fund-raising amount of newly issued funds continues to shrink month on month, the management fee income collected by a large number of small and medium-sized PE / VC fund managers will not be able to cover their fund operating expenses, and the probability of being eliminated will be greatly increased.

At the same time, the average amount of fund raised dropped sharply. Visual China

A probe into the reasons for the decrease in the amount of fund raised by newly issued funds on a month on month basis

"After the promulgation of the management measures, we have obviously felt more severe pressure on fund-raising." The partner in the field of fund-raising of equity investment institutions sighed to reporters. In the past, they used to sell PE products through independent fund sales agencies (mainly third-party financial institutions). With the help of the latter's customer channels and marketing capabilities, each newly issued PE product can raise 500-1 billion yuan. Now, after the independent fund sales agencies stop selling PE products on a commission basis, they find that the fund-raising amount will be reduced by 2 / 3.

He said frankly, they have made an internal calculation, and the current new PE fund-raising amount can not meet the fund-raising needs of the proposed investment projects, but also make the fund management team in a dilemma, that is, the management fee income can not cover the daily operating expenses. Therefore, he consulted several independent fund sales agencies to negotiate new fund-raising plans, and they were told that the current feasible operation mode is that the third-party financial institutions can only raise funds in disguised form through PE fof, that is, PE fof completes the fund-raising first, and then injects capital into their new-style fund products by investing in sub funds.

However, some PE fofs stipulate that the investment amount of a single sub fund shall not exceed 10% of the total assets, so the investment amount of PE fof to the sub fund is greatly restricted. Finally, the actual investment amount of a single sub fund of PE fof is only 100-200 million yuan, which can only solve the 25% fund-raising target of the newly issued fund products.

In the view of many industry insiders, this is also one of the main reasons why the average fund-raising amount of new issuance funds dropped by 67.6% month on month in November. After all, it is not easy for most small and medium-sized PE / VC fund management teams to raise funds from long-term investment institutions to make up for the fund-raising gap. Compared with individual high net worth investors, they are more interested in the IPO profit prospects of the projects to be invested by China Singapore Fund, while the investment of long-term investment institutions depends on whether the past performance of the fund management team is excellent and stable, whether the relevant investment decisions are scientific and standardized, and project risk management Whether the management measures are comprehensive and whether the project investment dispersion is high enough. In these aspects, most small and medium-sized PE / VC teams do not have similar capabilities.

"As a result, the survival of the fittest process of the fund management team (GP) is quietly speeding up." Many PE industry insiders pointed out. If more and more small and medium-sized PE / VC funds can not solve the dilemma of the continuous low fund-raising amount of newly issued funds, their management fee income is bound to be unable to cover the daily operating expenses and can only accept the fate of being eliminated.

The polarization of equity investment fund raising market continues to ferment

It is worth noting that although the domestic equity investment fund-raising market continues to improve, the polarization of the industry is still prominent.

According to Qingke data, there were 24 large-scale PE / VC funds that raised more than 1 billion yuan in November, raising about 60.515 billion yuan, accounting for 57.6% of the total amount raised.

Correspondingly, according to the data of the fund industry association, the number of GP with asset management scale of more than 5 billion yuan only accounts for 2.5% of the whole private equity fund, but they manage about 45% of the whole industry; in contrast, the proportion of GP with asset management scale less than 100 million yuan is as high as 67%, and the proportion of asset management scale is only 3%.

"On the one hand, this shows that the capital concentration effect of the industry's leading institutions is becoming increasingly prominent, on the other hand, it also shows that more and more LP investors are becoming quite rational." A large domestic PE investment director pointed out to reporters. At present, more and more LP no longer focus on arbitrage in the primary and secondary markets, but instead focus on whether the investment philosophy and investment strategies of equity investment institutions (including value-added services for the proposed investment projects) can create higher equity investment returns. Therefore, the industry leading institutions with long-term stable performance and investment philosophy strategy that have been confirmed by the market are more likely to be affected by various types of LP favor.

The reporter learned from many aspects that at present, more and more individual high net worth investors are also reflecting on whether their preference for pre-IPO will bring greater investment risk to themselves. According to the data, the total investment of equity investment institutions in the primary market reached 1.29 trillion last year, while the total financing amount of A-share secondary market was only 1.35 trillion, which means that some equity investment funds may not be able to realize profit-making exit in the secondary market, especially the high valuation pre-IPO investment amount.

As a result, more and more LP start to "look forward" -- they are more willing to invest in venture capital funds and growth funds to win the equity appreciation dividend of enterprise growth. In contrast, many small and medium-sized equity investment funds focusing on high valuation pre-IPO investment are suffering from the cold reception of LP, which leads to the continuous polarization of equity investment fund-raising market.

Nowadays, many small and medium-sized equity investment institutions have been in trouble, and their fund-raising amount has been shrinking day by day, so they have to choose "close down", which will undoubtedly further accelerate the process of GP survival of the fittest.

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