Giant MBO, or into the education Circle Capital Exit sample

Sunway, amber a series of events so that U.S. stocks investors to the Chinese education concept stocks avoid, no interest in all, a-share and limited by the policy gate has been open, then a few years ago, "crazy investment" into the education and training companies how to exit the capital? The way the giant educates may be worth learning. According to the Economic Observer reported that the giant education chairman recently successfully completed MBO (management repurchase), the acquisition of investment institutions held by the giant shares, MBO funds mainly from the letter of the credit to withdraw from a financial product "high growth enterprise Debt", about 150 million yuan. 2007, Qiming Venture capital, Haina Asia and other institutions investment giant education 20 million U.S. dollars, this year is the sixth years of investment, the Fund is facing the withdrawal pressure-generally speaking, VC fund management period of 10 years, the general rule is the first five years to find projects cast out, after five years to recover, After five years of investment in a single project, the exit problem must be considered. Generally speaking, the most common exit methods are: ① after the listing, ② the next round of financing, part of the withdrawal, ③ was merged by other companies. Unfortunately, most of these are difficult to carry out at present. Listed in the way said before, copy the new Oriental, good future route to the U.S. stocks have been very difficult to see that a few stocks depressed turnover will know, the market has no longer recognized the "China + Education" concept, the policy reasons for a A-share also has no successful precedent. As for the next round of financing, although the new Oriental after the launch of the education and training of the capital boom, but now look at this wave of investment institutions most of the growth space is scarce, no PE is willing to "take". If the next round of financing is not a big boost to valuations and even downround (valuations are lower than previous rounds), then it is hard to exit. Mergers and acquisitions, access to investment and exit pressure of this group of bodies, they are not small and not lack of cash flow, is the possibility of direct mergers and acquisitions, after all, like Pearson throwing 300 million of dollars to buy the case of global IELTS, training circle is not uncommon. MBO, which is funded by management, becomes a feasible channel for capital withdrawal, but requires managers to pledge some shares and increase the debt risk of enterprises. According to reports, in the course of the credit, the letter is issued two "high growth enterprise debt", the giant for this financing to provide joint and several guarantee responsibility, the financier (ie Yin Xiong) to the giant's equity pledge. Can MBO be the best route for the capital withdrawal education and training company? After the giant, who's next?