PE rich game: Elite PE strength PE and grassroots PE three points world

The so-called national PE, it should be said that the rich PE more appropriate. "The general threshold is 10 million, but over the past two years many companies have started with a 20 million threshold." In recent years, the threshold of private equity market is gradually high.　　"said Song, a wealth researcher at the third party financial institution.　　In the context of "PE for All" (private Equity, generally translated as "private equity investment"), the creation of the gem has become the most fashionable investment in the present. "20 million tickets?"　　"From the threshold of entry, PE is the game of the rich." "The development trend is that the fund is growing in size and the threshold is getting higher." The Fortune Fund's 2005 limited partner's threshold was only 3 million, but it has now been raised to 20 million.　　Shao, partner of Fortune Venture, revealed. Coincidentally, Ding Baoyu, managing director of Albert Chan, said: "Our company is issuing the fifth Fund, the minimum subscription amount is also 20 million yuan, the issue size of 152 billion."　　"It is reported that the 2010 through the wealth of Noah to issue a number of PE products limited partner threshold of 10 million."　　Limited Partnership is the most common form of private equity market, fund investors as limited partners, do not participate in management, bear limited liability, the fund management company as a general partner, investment in a certain amount of funds, management and investment and other decision-making power, bear unlimited responsibility. Of course, not all PE have such a high threshold.　　The threshold for Silicon Valley's limited partners is only 2 million, and its current largest fund is only 300 million. Silicon Valley Paradise has launched its first fund in 2006 and is now preparing for the 31st fund, said Bao, executive director of Silicon Valley Heaven.　　"Small fund routes are more efficient". "The Fortune Tenth Fund is being raised, with a total size expected to be 3 billion.　　"Shao said.　　The institutional Investment survey found that traditional PE tended to raise funds through private relationships and personal networks, and that the current use of third-party financial institutions, private banks and external channels of trust was becoming a trend. According to industry sources, the above three kinds of external channels charges are also different.　　Third-party financial institutions, in addition to charging the entire fund 1% of the cost of commission, but also to receive a separate income of 10%, trust Charge commission fee is also about 1%, other aspects also have to charge, the bank is the highest possible charge of 5% Commission fee. "Bo excess Income," the third party wealth researcher Noah Song said: "The" ' National PE, "the emergence of the market, explains the hot situation. One is a significant increase in the number of participants and the second is to raise the price/earnings ratio regardless of cost. This is a failure of the general partners and the competition caused by the industry confusion, not more than a fund cycle (generally referred to 5 years), will return to normal.　　"To promote the momentum of money, is the two-tier market in recent years, especially the gem to give the super overvalued value." Ding Baoyu, managing director of Albert ChanLu, the company has withdrawn the biggest return on the project by more than 40 times times.　　The general partner's own funds will account for the fund size of 10%-20%, the main revenue is two: the annual management fee collection, is generally the fund assets of 2%-2.5%, there is also a project investment net income of 20% divided. For limited partners, in addition to the project's net income of 80%, each year will receive corporate dividends.　　To attract investors, most general partners promise not to charge a management fee for a limited partner's earnings of at least 8% to 10% per annum in the case of profitability.　　From the overall return on investment in domestic and foreign capital markets, 2010 investment institutions through the IPO of 220 enterprises to achieve 480 withdrawal, the average book investment return of 8.06 times times, compared with 2009 down 28.2%.　　2009 Gem launched, enterprises generally get higher valuations, to the back of the investment institutions to bring high returns, the return on the book investment is also significantly higher.　　After entering the 2010, with the number of gem listed enterprises increasing, the issuance of a new high price/earnings ratio, the market for the company's valuation is increasingly cautious, the overall level of return on investment has fallen. From the average return on investment in each capital market, Shenzhen Gem is still the highest return of the IPO trading market, to 12.13 times times, Shenzhen SME board and Shanghai Stock Exchange are 9.38 and 7.03 times times respectively.　　The domestic market average book 0.40 times times, but compared to the 2009 domestic capital market 17.06 times times the average book return, 2010 has a relatively large decline.　　In terms of foreign capital, Chinese companies have the highest rate of return on the NYSE, up to 5.71 times times, Nasdaq is 2.81 times times, HKEx is the lowest, only 1.64 times times, and the average book return on the overseas market is 3.5 times times. For investors, to achieve profitability, a PE person said: "RMB fund income distribution there are two kinds, one is as long as the project exit, on the dividends; another is the entire fund after the withdrawal of the project to allocate. The former is now more prevalent.　　"For a limited partnership fund, annual payments to the general partner 2%-2.5% management fees, in addition to the operation of more standardized, the need to pay about 2 per thousand of the bank custody fee."　　Related reports: China VC/PE Market 2010 Statistical Analysis Report [page] "RMB funds popular" in 2009 after the first RMB fund exceeded the dollar fund, the renminbi fund has become a rapid leap into China's private equity investment industry leader.　　In the stimulus of excess income, a large number of funds on a wave, RMB funds become high net worth investors chasing the target. Chinaventure Group's database products Cvsurce statistics show that 2010 China venture capital and private equity investment Market Total Disclosure Fund 359, including the completion of fund-raising (including the first round of fund-raising completed) and the start of the number of fund-raising funds are235 and 124, the capital scale is 30.418 billion U.S. dollars and 40.756 billion dollars respectively.　　2010 disclosed VC (Venture Capital, that is, VC) investment case 804, the total investment of 5.668 billion U.S. dollars, the disclosure of PE investment cases 375, total investment of 19.613 billion U.S. dollars.　　In 2010, investment firms achieved 480 withdrawals through 220 IPOs (IPO), averaging 8.06 times times the return on their books.　　Whether to raise money, investment or exit, are a record high.　　The data show that China-funded funds, which are the main currency in renminbi, are far more than the dollar-denominated foreign funds in terms of the number of established or the scale of raising capital. Among the funds that began to be raised in 2010, there are 93 Chinese funds,　　Target size of 31.168 billion U.S. dollars, respectively accounted for 75% and 76.5%; the fund was completed (including the first round of completion), the number of Chinese funds is 191, the amount of fund-raising completed is 19.291 billion U.S. dollars, respectively accounted for 81.3% and 63%. "Strength PE will become mainstream" Shao that, because the industry overheated, the current financing market, there are some do not follow the rules of the licensing practices, to some extent disrupted the industry order. "But the venture industry is a marathon, the fight is a long endurance and performance, the current bubble market will eventually become rational." In the next 3-5 years, the entire private equity market will certainly be more normative. "PE is difficult to survive without its own sources of funding."　　One of the venture's critics sighs. At present, China's private equity investment market industry pattern, is "Elite PE", "Strength PE" and "Grassroots PE" three points world.　　However, "Strength PE" will become the trend of future development.　　"Rich and powerful PE" refers to the establishment of the government resources, "strength PE", such as Ding Hui, Hong Yi and other special industrial resources, technical resources of the venture, "grass-roots PE", as the name suggests, is neither industrial background, nor the technical background of the venture investment institutions. Industry insiders pointed out that the current number of grassroots PE, but most will perish, only one of the outstanding performance, the strength has been enriched, the opportunity to develop and grow, "' Strength PE ' will become the mainstream of the market, in the future, perhaps the size of the fund development to hundreds of millions of is possible."