Join Hands With Yao Ming Kant And Lin Xianghong To Establish M & A Fund: How Can Liu Xiaodan Achieve Better Results?

Recently, Liu Xiaodan, the former chairman of Huatai United Securities Co., Ltd., known as "the queen of merger and acquisition", has suddenly become the focus of venture capital industry.

On March 9, Wuxi Yaoming Kant Investment Development Co., Ltd. (hereinafter referred to as "Yaoming investment") announced that Wuxi Yaoming Kant Investment Development Co., Ltd. (hereinafter referred to as "Yaoming investment") plans to establish a fund management company and general partner of the fund and related transactions Meadowspring, Chenyi Investment Co., Ltd. and Suzhou Private Capital Investment Holding Co., Ltd. jointly invested and established Suzhou Yaoming convergence Private Fund Management Co., Ltd. (hereinafter referred to as "Yaoming convergence"), with a registered capital of RMB 100 million.

The announcement also shows that after completing the registration of private fund managers of the fund industry association, Yaoming convergence will initiate the establishment of an industrial investment M & A fund (hereinafter referred to as "Yaoming convergence industry M & A fund"), aiming at the structural growth opportunities of the medical industry in Greater China, it is committed to carrying out industrial investment in the middle and later stages of the medical and health field.

It is worth noting that the legal representative participating in the above morning one Investment Co., Ltd. is exactly Liu Xiaodan, the "Queen of merger and acquisition".

"At present, some institutions LP and family offices have planned to invest in Yaoming convergence industry M & A fund." A person familiar with the operation of YaoMing convergence industry M & A fund disclosed to reporters. Even some family offices are asking about Liu Xiaodan's exit strategy of medical and health industry as an important reference for them to evaluate the amount of investment they plan to invest.

The reporter understands from many sides that at present, Yaoming converges the industry merger fund "not to be short of money". After all, the legal representative of Suzhou Private Capital Investment Holding Co., Ltd., another participant, is Lin Xianghong, the "big guy" in the venture capital industry. He is also the chairman of Kaiyuan guochuang and the chairman of Suzhou fund. He has a deep relationship with many fof funds and institutional LP at home and abroad, which is enough to bring a lot of LP resources to this industrial M & A fund. At the end of last year, he and Deng Shuang, the former president of guochuangyuan master fund, initiated the establishment of Newley holdings.

"As a matter of fact, whether Yaoming convergence industry M & A fund can obtain numerous LP's pursuit depends to a large extent on whether Liu Xiaodan can copy her brilliant M & A achievements during her tenure in Huatai United Securities." A large domestic venture capital agency head said frankly.

According to the operating performance ranking of securities companies released by the China Securities Association, during the period of Liu Xiaodan serving as the top management of Huatai United Securities, the securities company successively won the first income from financial consulting business of securities companies in merger and reorganization from 2014 to 2018. Liu Xiaodan also led the capital operation cases such as the acquisition of assetmark by Huatai Securities, which transformed Huatai United Securities from an unknown regional securities company to a leader in the field of merger and reorganization.

In the view of many venture capital insiders, there are indeed many opportunities for merger and integration in the domestic medical and health industry. On the one hand, many medical and health industry segmentation market tends to be saturated. If the head enterprises want to maintain a fast growth rate, they need to obtain more market share through merger and acquisition. On the other hand, with the rapid development of medical and health technology and business model, many leading enterprises in the industry also need to merge and integrate to maintain their advantages in technology research and development and business model innovation.

"However, in the mature markets in Europe and the United States, there are also many cases of merger and acquisition failure in the medical and health industry, because many of them have encountered problems such as running in failure. Whether Liu Xiaodan can rely on his rich experience in M & a capital operation to improve the success rate of acquisition, to some extent, determines the success or failure of YaoMing convergence industry M & A fund. " The person in charge of the above-mentioned large-scale venture capital institutions pointed out.

Liu Xiaodan's gorgeous transformation

The reason why Huatai United Securities has become a leader in the field of merger and reorganization is to a great extent that many securities companies have focused on IPO business in recent years, while Liu Xiaodan has paid attention to the layout of merger and reorganization business, which has finally transformed Huatai United Securities.

In 2019, Liu Xiaodan also chose a gorgeous transformation. After resigning as the chairman of Huatai United Securities, she started her venture capital journey and founded morning one fund management Co., Ltd. (hereinafter referred to as morning one investment).

Liu Xiaodan's main work is divided into two parts, one is to communicate with many LP institutions, family offices and the rich to win their investment, and the other is to set his own venture capital direction. At present, morning one investment mainly focuses on three major fields: medical and health, consumer services and technology manufacturing.

In January this year, morning one investment announced the completion of the first RMB M & A fund, with a total scale of 6.8 billion yuan. The main investors (LP) cover the founders, core executives or family offices of large insurance companies, well-known master funds, listed companies, and many leading enterprises.

It is worth noting that before the first M & A fund announced the completion of the fund-raising, Liu Xiaodan had made frequent actions in the field of equity investment.

In March last year, Hualan bio announced that Hong Kong Kekang, the shareholder of Hualan vaccine, its holding subsidiary, signed an equity transfer agreement with Chenyi's funds. Chenyi investment invested 828 million yuan in Hualan vaccine and acquired 6% equity.

Two months later, BYD semiconductor, a subsidiary of BYD holdings, announced the introduction of strategic investors to raise 1.9 billion yuan with a valuation of the first 7.5 billion yuan. Among them, Chenyi investment has injected 100 million yuan into BYD semiconductor. The joint investors include Sequoia China, SDIC innovation, Xiaomi group, SMIC international, etc.

In December last year, renogy, which is committed to promoting the civil revolution of clean energy, if new energy technology introduces strategic investors by means of capital increase and share expansion, morning one investment, as the leading investor, will invest together with Jiayu fund and Sirius capital.

The person familiar with the matter believes that these equity investment projects have strong opportunities for M & A exit - with their technological R & D strength and market share, even if they have not completed the IPO, they have a great chance to be acquired by listed companies to realize project exit.

"Liu Xiaodan is also particularly optimistic about the M & A investment opportunities in the domestic medical and health sector." He told reporters. Previously, Liu Xiaodan said at the first annual investors' meeting of morning one investment that with the aggravation of aging, big health has become the hottest track; on the one hand, the industry will take innovation as the theme and actively participate in global competition; on the other hand, it will usher in the trend of integration, so as to improve the efficiency of resource allocation. Both growth funds and M & a funds will have huge investment opportunities.

In his opinion, this is also one of the main driving forces for Liu Xiaodan's decision to jointly launch a medical and health industry M & A fund with partners such as Yao Ming Kant. Yao Ming Kant's professional ability in pharmaceutical R & D and exploration of health management business model will, to a large extent, provide more solid backing for Liu Xiaodan to show his skills in the medical and health M & a market.

Some LP are optimistic about Liu Xiaodan's solution to the strange circle of "M & a failure"

Whether Liu Xiaodan can create a new world in the field of medical and health M & A is also concerned by the venture capital industry.

A partner of a venture capital institution that has operated several medical M & A cases disclosed to the reporter that the current success rate of M & A in the field of medical and health in China is not very high. The reasons are: first, the corporate culture of both sides of the merger and acquisition is hindered; second, the effect of "1 + 1 > 2" can not be created due to the incompatibility of business models; secondly, the acquisition based on medical technology will also be affected by new technology due to this technology "Eliminate" and encounter failure.

"At present, the reason why some listed companies are keen to acquire medical and health institutions with new technologies or new business models is largely based on the needs of market value management. But the eyes of the capital market are bright - once this kind of M & A fails to meet the expected performance growth expected by the market, many funds in the secondary market will soon vote for the acquisition, resulting in the failure of PE Institutions to obtain ideal returns in the project acquisition exit. " He pointed out.

It is worth noting that Liu Xiaodan has a unique perspective on the operation of M & a capital in the domestic medical and health field. She once said that the overall slowdown of China's economic growth and the long-term maintenance of medium and low-speed growth will inevitably drive the redistribution of industrial value chain, amplify the leading premium effect and intensify industry integration. In addition, the technological revolution has shortened the growth curve of industries, blurred the boundaries, and accelerated the iteration of enterprises. Entrepreneurs in emerging industries and innovators in traditional enterprises are facing each other, and integration will create many "new species".

"In view of Liu Xiaodan's rich experience in M & a capital operation and good performance during her tenure in Huatai United Securities, many institutions and family office LP believe that her Yaoming convergence industry M & a foundation has delivered a remarkable report card." The person familiar with the operation of the Fund said frankly. At present, many institutions and family office LPS involved in the investment of the first M & A fund of morning one are interested in subscribing for this fund share, and even some LP are worried that a large number of subscribers will lead to "compression" of their subscription shares.

He disclosed that at present, Yaoming convergence industry M & A fund has drawn up a number of proposed investment projects and is completing due diligence to sign equity investment intention agreement as soon as possible.

"Many venture capital institutions also hope that Yaoming convergence industry M & A fund can create good performance, which will make many LP realize that equity investment profit is not only one way of IPO Huashan, but also can create considerable returns." He pointed out.

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