PE Fundraising STORY: three special Fund birth

Spring River water Heating Duck Prophet, pe cool hot look raise capital.

At the end of 2012, Fortune president Bing and partner Shao had predicted: for PE institutions, fund-raising is the beginning of the knockout, now if the main to the individual LP (investor) fund-raising, raise a 500 million of the fund is difficult. In the past two years, their widely accepted projections are slowly becoming reality.

In fact, the situation of raising funds is worse than the general PE people imagine. The most intuitive embodiment is that PE in the heart of the most ideal fund-raising object-the enthusiasm of the insurance funds to PE is not high, from the Insurance Regulatory Commission for the first time to guide the investment rights of the insurer has been the past four years, the risk of direct PE institutions are still a handful.

With such fundraising, the GP team, the first to raise capital, is getting tougher. FoF Asset Management Partner Hong Weili, a well-known domestic fund manager, has a deep understanding of this: "2013, I from open Platinum Venture Capital Management Limited Company out, originally wanted to raise a 500 million-1 billion fund, to the song Netherfield assets raise money, later found to do fof more advantages, and finally by the song Netherfield ' amnesty '. ”

However, in the past year or two, there are still a number of well-known PE institutions, young partners, investment director level of staff to leave the original fund, or plan to leave, they are in contact with the various potential LP. This phenomenon is very common, some of the dollar funds out of the people have successfully raised their own funds, and some of the size of 200 million or 300 million of dollars. But local GP's fundraising is much tougher.

Hong Weili will these out of the people to raise money, likened to "Shaolin two generations of Wudang disciple leader," said "they are young, have their own entrepreneurial desire, accumulated enough project experience and exit cases, but also accumulated some LP resources." Therefore, Hong hopes to be able to choose from the real Dark Horse team to invest.

In fact, not only the Fibonacci assets, many FOF organizations and government-led funds have said they will contact these first-time fund-raising people and are willing to invest.

Some FoF fund sources pointed out: "From 2001, 2002 to 2012, 2013 is the PE1.0 era, then from last year or this year, may be called the PE 2.0 era." "The so-called PE2.0 era, is that they will become the second generation of PE investors, and now start to invest in their institutions LP, hoping to select the second generation of PE investors the most potential batch, in order to expect them to become the next generation of PE industry leader."

Many institutional LP people think that the future PE fund, there are two main ways: one is already a big platform, such as Ding Hui investment, or backed by a strong shareholder resources, such as Hong Yi and some brokerage direct investment fund, the other is still focused on equity investment, they focus on certain industries, the fund has a clearer degree of identification, The bigger motivation for partners is to earn carry (profit-sharing) rather than management fees.

In the future, will the management scale of PE fund shrink? Regardless of whether the agency LP people agree, they will not oppose, PE institutions blindly expand the management of assets to earn management fees of the model will not work, the future of the PE institutions would pay more attention to the return of the fund rather than the size of management assets.

This newspaper selected three successful fund-raising GP managers, they represent the future PE fund three trends: the Beijing University Medical Industry Fund, which was first raised, was miraculously funded by 2.2 billion insurance agencies, and it took advantage of the shareholder background; from Fortune to fly a year Fu Zhe wide, "small step jogging" raise five funds, This is a small and beautiful feature of the fund; Harbin Fu Tak Bio-medicine venture capital fund represents the real channel to sink, they take Harbin Venture investment group as Cornerstone investor, try to be a real local fund.

Beijing University Medical Industry fund: To risk money, backed by medical industry chain Resources

A new fund that raises 3 billion yuan in less than a year, including 22亿来 respective, does this sound a "impossible task"?

The notice issued by the CIRC in 2010 and 2012 stipulates that when the insurance funds invest in equity investment funds, the latter must satisfy the qualification that: "The registered capital or the pledged capital is not less than 100 million Yuan"; "with rich experience in equity investment, management assets balance is not less than 3 billion yuan"; There are not less than 10 professionals with equity investment and related experience, and there are no fewer than 3 exit projects completed.

Founded in December 2013, the Beijing University Medical Industry Fund ("Beida Medical Industry Fund Management Co., Ltd.") raised more than 3 billion yuan last month, of which 2.2 billion were funded by major insurance companies, PICC Capital Investment Management Limited (hereinafter referred to as "PICC Capital", The Chinese People's Insurance group's subsidiary company invests 1 billion yuan exclusively. The fund has been approved by the Insurance Regulatory Commission.

Who is the Beijing University Medical industry fund? has reached the threshold of investment by the insured institution? Why is it so sought after by the insurance fund?

The story from May 2013, Peking University medical department and Peking University Founder Group Co., Ltd. (hereinafter referred to as "Peking founder") signed a strategic cooperation agreement to build "Beida Medical Group" (Full name "Beida Medical Industry Group Co., Ltd."). The southwest synthesis of the holding of Peking University Medical Group (000788. SZ) also announced this matter, and renamed as "Peking University Medicine", the Peking University Medical Industry Fund is the Beijing University Medical Group's strategic investment platform.

Founder of Peking University is known as the capital market of "founder Department", it is a school-run enterprise controlled by Peking University, which has the five major sectors of finance, medical, real estate, IT and commodities. When Peking University medical department and founder of Peking University started strategic cooperation, the story of the Beijing University medical resources provider and the Beijing University Medical Industry fund as the investment platform, and the combination of the high-end medical resources of Peking University medical treatment with the capital of each road with equity investment transaction structure were launched.

And went to the front to fencing industry funds, is the PE Lake of fresh people Lin Yanglin. Lin Yanglin is currently the CEO of the Peking University Medical Industry fund, who has been working in foreign investment banks and reporting to the Beijing University Medical Industry fund in early November 2013. After his arrival, his most important task is "holding" the medical resources of Beida Medical Group to raise funds.

On September 18, Lin Yanglin told the 21st century economic reporter about the story of how "First Fund" (a fund) raised funds to insure capital. "I made it very clear when I was raising money with LP because it took me two months to think about why I wanted to come to this platform, and I think the answer should also attract LP," he said. Now medical investment is very hot, a lot of funds, willing to see our LP is certainly interested in investing in China's medical industry, I am most important to tell them what the difference between our funds and other funds, why is the most worthy of investment in the medical industry fund one. ”

Lin Yanglin Thinking, the first is the location of the Beijing University Medical Industry fund: "The biggest feature of Beida Medical industry fund is the ' industry ' behind it." We rely on Beijing University and Peking University medical department's brand advantages and medical resources, the University of Medicine under the 9 large three hospitals, 13 teaching hospitals, is the most influential in the collection of production, learning, research into an integrated medical institutions. At the same time, with the founder Group and the Peking University Medical Group, the Beijing University Medical Industry fund can fully utilize the group's capital operation ability, and realize the full synergy of resources in the hospital management, medicine research and development, medical service and other medical industry chain. ”

"Second, what are we going to do with the first fund?" The first special investment hospital, this positioning for the LP is very attractive. At present, many funds are flocking to medical care, it is also clear that the hospital area is a traditional industry with a few reform dividend areas, but the real strength of the status of social capital into public hospitals or state-owned enterprises hospital restructuring, is still very few. Moreover, with the advent of China's aging society, as well as the health deterioration caused by food and air, the demand in hospital area will rise sharply.

As a special investment in hospital funds, to the insurance capital to raise money, can be said to be logical. Lin Yanglin said: "The long-term nature of the risks and insurance companies and the health care industry, the two are destined to be easy to walk together, and the state also support insurance companies into the medical field." Insurance companies to invest in our industrial funds, more is the identity of strategic investors come in, that is, after the investment of the two sides of the resource integration, such as insurance products and funds invested in the hospital synergy, the risk of investment and investment in some of the hospital equity. As a newly established fund, we do have some deficiencies, but we are fully prepared to invest, manage and withdraw, so that we can make up for the worries of the LP on the new fund. ”

In the end, many insurers agree with this "synergy effect". Therefore, the Beijing University Medical Industry fund in August to complete the first phase of fund-raising, the total amount of 3 billion yuan, insurance capital contribution of 2.2 billion.

An insurance-management analyst, the largest LP PICC capital of the Beijing University Medical Industry fund, invests through the capital of the Chinese People's Health insurance company, which is owned by its parent corporation. This is the story of the insurance and medical industry: in the insurance industry chain, the insurance company's compensation is the hospital's income, which is a natural fit. In essence, insurers prefer to cast nets and communicate with all medical institutions in the community. If the option is to hold a hospital, or invest in a fund, and the latter will manage a number of hospitals, insurers would certainly prefer the latter, which could quickly open the doors of many medical institutions.

Then why does the insurance company choose the newly established Peking University Medical industry fund? "In China, there are not many medical institutions with the size and resources of Beida Medical industry Group," the insurer said. Large insurance companies will approve the fund, more because the fund's early search for projects, medium-term management, late exit, not only the fund insiders do, their business structure, the Industrial fund and the Peking University Medical and Peking University Health care shareholders do a very close relationship. Peking University Medical department behind the Beijing University of Medicine has a number of large three hospitals, and founder Group of Peking University International Hospital (Asia's largest single hospital) will open this December, so the fund behind a lot of hospital management and many experienced hospital managers to participate. ”

So, Beijing University Medical Industry Group and its shareholder resources, can we really support the Beijing Medical industry Fund? Lin Yanglin added: "The chairman of our fund is the CEO of Beida Medical Industry Group Li Guojun, Beida Medical Industry Group is the only medical platform of Beida founder, and Li is also a senior vice president of founder Group, he can fully mobilize the development of group resources Support Industrial Fund." ”

Lin Yanglin Introduction, concrete operation, the investment Committee of the Fund also left two seats to LP so that the LP could fully understand the specific operation of the Beijing Medical Industry Fund, and also made some innovative designs to better satisfy and balance the different demands of LP, shareholder and the investment institution.

Capital raising: Raising funds, investing in industrial Internet

As Fortune, one of the best investors in the local first-class venture capital, Fu Jecuan invested in the development of the San Nong (002299). SZ), Sun Bird (300123. SZ), Heng Tai April (300157). SZ), Evergrande High-tech (002591. SZ), Huang-huang (002695). SZ) has IPO, which brings a lot of returns to fortune, and also pushes his personal reputation to a high point.

August 2013, Fu Jecuan left Fortune venture. At the end of 2013, he founded the capital of Kai Fu. The next time, Fu Jecuan mainly do two things: fundraising, investment.

According to the person familiar with Fu Zhe wide, Rao is Fu so excellent past performance, he also still very hard to raise funds.

On the phone, September 17, Fu Jecuan about his fund, which is summed up as "small Steps to Run": "I have raised 5 funds altogether." The first three is my friends who have known each other for a few years, they have 100 million yuan in each period, 1 period and 100 million yuan. I really raise money in the community there are two, one of the fund scale is also 100 million yuan, Zhongguancun Venture Capital Investment Co., Ltd. 30%, Tsinghua University Bauhinia Capital out of 15%, leaving 55% of the money, in the community to find high net worth individuals and private entrepreneurs. I also raised 1 in Guangzhou, 150 million of the fund, Guangzhou Hopewell Enterprise Management Consulting Co., Ltd. is my cornerstone investors, give me greater support, other investors have a person also have institutions. ”

Fu Jecuan explained that he adopted such a strategy, because he felt that he could not rely entirely on his previous performance in fortune to raise money, but first raised some small funds to make a basic investment, in the process also slowly expand the team, the current fund has more than 20 people. He believes that these are done, and then start to raise the relatively large scale funds. It is understood that he is in contact with a number of parent funds.

Fu Jecuan in the public impression of the past is good at investing in traditional industries, its representative is also more out of the traditional industry, but today his investment field focused on three: TMT, new materials, modern services.

Let a lot of people unexpected is, Fu Jecuan now most like to talk about "industrial Internet", that is, before the Internet consumers are more individuals, and in the future, many enterprises will be through the Internet to carry out economic activities.

Fu Jecuan explained that he was not only starting to see TMT today, as early as 2009, it was also in the fortune, the investment in the Travel Network technology companies (hereinafter referred to as "Xun Travel Network") and Gold and Silver Island (Beijing) Network Technology Co., Ltd. (hereinafter referred to as "treasure") is the representative.

Fu Jecuan Tan Chen: "I cast a traditional business background, dare not to invest in the TMT enterprise, so compared to those who go to the Internet to dig gold mining enterprises, I would like to invest in water sales enterprises." For example, the game industry is so huge, but the real money and can continue to make money of the game enterprise very few, but the fast travel network to do online games accelerator can make money, and profit margin is also high. ”

Fu Jecuan told reporters that he has invested 20 TMT enterprises since fortune, of which 10 are related to industrial Internet, "the development of the Internet to this day, with the integration of industry will accelerate;" For the traditional enterprise services to help them online companies will have the opportunity. ”

Fu Jecuan agrees that future funds will be smaller than they are now. "Our national IPO rules have to be registered, if the mature project, PE institutions will be lower than the return rate, which forces the industry to go forward, to invest in earlier projects, then the size of the fund is a big deal." There may be many VC funds in the future of 200 million or 300 million, up to 500 million. And the big fund, will do the real merger Fund, does the holding type acquisition. Many of our country's industrial concentration is low, many small and medium-sized enterprises exist, are homogeneous competition, we all live hard, which will bring a lot of mergers and acquisitions fund industry opportunities. ”

Rich Germany Fund: Raise capital channel sink, investment combine local industry resources

Born in Suzhou, is now a comprehensive arts in Suzhou Jian Partner, the future evolution of PE institutions have their own point of view: In addition to focus on the industry, some focus on regional funds, there are opportunities to come out. He takes the city's national venture as an example, the agency focused on investment in Jiangsu province and even local companies in Suzhou, it is not as high-profile as some national institutions, but has a very good performance. In 2013, Guo Shou (Suzhou), the state-run venture capital Management, financed a total of 10 billion yuan for the city development Industry fund, with a sole contribution of 7 billion.

However, Harbin Fu Tak Bio-medicine venture Capital (hereinafter referred to as "Harbin Fu de"), the two-year fund of the founding of Fu Tak, is born with this logic. Founded by Shizhijian, he is not known to the general public, who has been the general manager of Sun Hung Kai Real Estate Group direct investment in China. Shizhijian in the Sun Hung Kai stayed for ten years, both direct investment in unlisted companies, but also invested in a number of funds, such as the famous Ding Hui Hongyi.

Shizhijian after leaving, encounter PE fundraising cold, so raise capital is not smooth. Previously, his main task is similar to the management of Guo's family funds, never bad money so do not consider fund-raising. He raised about 100 million of the fund in 2012. His consideration was: "Make a small fund first, build the team, and cast the project." The two-year fund will be raised a little more. ”

Although the main LP of the first phase of the fund is basically with the vote, but Shizhijian still need to find more money. This time, he hopes to find a cornerstone investor first. Therefore, Jian introduced Shizhijian and Harbin Venture Capital Guidance Fund (hereinafter referred to as "Harbin Fund") to know, the Fund by the Harbin Venture Investment Group Co., Ltd. (hereinafter referred to as "Ha Chuang") management.

Shizhijian with a lot of doubts to go to the northeast several times, the process, found that the staff of the Harvard venture than he expected to be more market-oriented, the understanding of the model is also quite deep. Shi also went to see a lot of local biomedical projects in Harbin. This has famous "Harbin Pharmacy Three Plants" and "Harbin pharmacy six Factories" city, did not disappoint him: "Other places in line listing projects, the general profit is 40 million or 50 million, some of the local line of the IPO project, profit billion, and never a dedicated PE agency, Only local businesses and entrepreneurs have invested. ”

Shizhijian is a cautious person, in contact, he also studied several well-known funds in Harbin set up a fund, finally expected to be less than the original reason: "The problem is more common, those funds are not really stationed in the local, especially the partner level of people not in the local." Well-known funds in this set up an office, someone looking for a project, the project eventually reported to the headquarters of the Fund, the headquarters of the local situation in Harbin do not understand, there are many other projects can choose, decision-making is also slow. Therefore, the people of the HA venture's biggest concern is that we can not take root in the local. ”

As a result, Zhang, a founding partner, simply moved his family to Harbin to make the fund. Zhang, a PhD in biotechnology in the United States, graduated from the Chicago Business School, followed by years of experience as a senior executive at biotech companies in China and the United States, as well as a wealth of investment experience in the field.

So both sides are "unfocused", Harbin fund invested 50 million to Fu Tak Harbin. Fu Tak Harbin in early September, the end of the fund-raising, a total of 250 million yuan. The two sides agreed that Harbin Fu Tak future not less than half of the funds invested in the local, not less than 60% of the funds invested in biomedical technology.

Han Tao, deputy general manager of Harbin Venture, said that there are additional "post service" for the HA venture investment. "Not long ago, we set up a platform, with the general, Jian and other people to Daqing, Changchun, Harbin, Qiqihar and other land roadshow." Like Jixi coal mine, Daqing oilfield have a lot of rich people, but they do not have so much financial knowledge, before to venture also not too understand. The process of Jian and communicating with these people is both the process of educating potential LP and learning from them, and they will say that we have a project that might be right for you to vote for. ”

Thus, unlike the PE institutions in developed areas, there are still some provinces in China that lack the coverage of PE institutions. And these places often have their own local guidance fund, some of the PE agencies difficult to raise capital, if in these places to guide the fund to raise money, but also the real sink in the local, and with the local industrial resources, then perhaps found a new blue ocean.