PE listed need refueling

Pan 沩 Shanghai newspaper reporter reported

Kun Wu Jiuding's listing of "New Third Board," China Merchants, Silicon Valley paradise have announced the need for a new three-board ... ...

Local PE institutions listed, from the theoretical discussion two years ago, began to enter the substantive operation stage. Was considered to be listed in Hong Kong Kundu Jiuding, eventually achieving a long-awaited New Third Board; in 2010 to shareholders and employees to draw the "listing" blueprint for investment in China Branch chairman Xiang Xiang Shuang, the new three board has not yet been listed, Also convey the desire to transfer board to the motherboard within three years.

PE institutions listed on the PE industry is the subject of widespread concern. Considering the listing of many PE institutions, the first goal behind simply simply: fund-raising.

Fund-raising is not easy since 2011 has become the norm. In 2014, PE institutions all sided with the "listed companies" thighs and hand-held listed companies to make specific investments. It is also believed that one of the considerations behind them is to solve the problem of fundraising.

Some institutional LPs (Investors) are waiting to see: They are not involved in investing in the equity of PE management companies, but are happy to see that the brave PE organization can open a new channel for fundraising.

But not all PE organizations that want to go public have such a neatly unified target. Others have other considerations: for example, Shenzhen Venture Capital has considered backdoor listing and another institution is trying to list the new three board. Most of them do not want to raise Instead, it solves the incentive problem for executives.

These concerto composed together PE market dreams.

Jiuding samples: shares of shares into shares

430719.

This is the new board company Jiuding investment code. Jiuding Investment was established in September 2013 and holds approximately 98% of the shares of Kunyu Jiuding Investment Management Co., Ltd. ("Kunyu Jiuding"). Kun Wu Jiuding as a cutting-edge PE institutions, it has been trying a variety of innovations, a few years ago because of the implementation of "PE factory" rapid expansion for the peer attention.

April 23, 2014, Kun Wu investment once again walk in the forefront of the local PE fund: Jiuding investment in the national share transfer system for SMEs listed, that is landing "new three boards."

From the PE agency into a public company, Kun Wu Jiuding disclosed a lot of information, in addition to the "new board" must be released "public transfer instructions," and Jiuding investment "stock-oriented issue report." The latter shows: Jiuding Investment has just completed a round of targeted financing, financing up to about 3.537 billion yuan.

Although it is not news that the new three-board company will issue stock and raise funds before its listing, it is rare to raise as much as 3.5 billion yuan. Pay a total of 138 people, their price of 610 yuan per share, in exchange for Jiuding investment equity. Among them, 131 new shareholders contributed a total of about 3.262 billion yuan and subscribed about 5.35 million shares.

Before this issue, Jiuding Holding ("Tongchuang Jiuding Investment Holding Co., Ltd.") held about 85.5% equity of Jiuding Investment. The five largest shareholders of Jiuding Holdings, namely Wu Gang, Huang Xiaojie, Wu Qiang, Cai Lei and Qin Zhengyu, Of the five core partners; after the release, Jiuding Holdings stake diluted to about 59%. They personally also hold a small amount of Jiuding investment stake, so the five individuals actually hold a total investment Jiuding more than Liu Cheng shares.

In this regard, Kunming Jiuding partners Kang Qing Shan said: "The new shareholders are mainly Kunlun Jiuding's fund LP (investors), they use these funds subscribed capital investment in Jiuding investment; the future of these funds to be funded When, by Jiuding investment to finance.

PE Fund has a common practice, if a fund claims its size is 1 billion yuan, then the 1 billion is the total contribution of all LPs LP, LP who are in the first investment, often in accordance with contractual commitments to invest 300 million or 400 million; Follow-up contract in accordance with the subsequent funding.

In this way, Jiuding investment LP who invested funds invested Jiuding investment funds, equivalent to they did not increase investment in Jiuding capital, just to invest in the future will be the capital to pay in advance to buy shares of Jiuding investment, the future from Jiuding investment in place of these LP implementation of the previous subscription contributions. In other words, LP Kunlun Jiuding management of a fund shares, replaced by shares of Jiuding investment. It seems that after the completion of this offering, Jiuding investment as an asset management company, its net assets surge 3.537 billion; but it manages the size of the assets is still 26.4 billion yuan.

A PE industry analysts, is willing to carry out such a "convertible" LP, often because they are not so optimistic about the performance of individual funds in their hands, and more optimistic about Jiuding investment as an asset management company's overall performance. In addition, it is difficult to say that LP can obtain liquidity through this "convertible". The trading of the shares of the new three-board company is not active. Participation in the "convertible" must first draw real money, that is to say, for the 131 new shareholders For example, early payment of cash flow is fixed, and future cash flow is uncertain.

PE listed: fund-raising needs?

PE institutions listed overseas as early as the United States first-class private equity firm KKR Group, Blackstone Group first; and even in A shares, Kun Wu Jiuding is not the first person to eat crabs.

As early as 2008, Shandong High-tech Investment Co., Ltd. backdoor listing of Luxin high-tech (600783.SH), later renamed as Lu Xin Venture Capital. In 2010, 2011, private equity funds this new thing widely sought after people, Lu Xun Ventures shares have soared, many brokerage firms, private equity funds have to go to Shandong to investigate the company.

However, after Kunyu Jiuding, Zhongke Investment Management Group Co., Ltd. (hereinafter referred to as "China Merchants Investment") and Silicon Valley Paradise Asset Management Group Co., Ltd. (hereinafter referred to as "Silicon Valley Paradise") all publicly declared that they should also go to the new board . China Merchants Chairman Shan Xiang Shuang more bluntly: "By the end of this year, China Merchants Investment is listed in the new three is OK" and plans to switch to the main board within three years.

21st Century Business Herald reported in 2012, public information shows that single Cheung Shuang in 2010 several times to sell his holdings of China Merchants former parent company's equity; in the sale of old shares cash a portion of the funds, 2010, 2011, Zhongke investment and then increase their investment; single Xiang Xiang double equity dropped from about 93% to about 51%, many of the new shareholders are also the other branches of China Merchants Fund LP. In the document entitled Capital Increase in Zhongke Investment, the company wrote: "Within three years, the Company realized its IPO and strived to become China's 'Blackstone' and participated in the world competition on behalf of the Chinese equity investment fund."

To sum up, we can see that the single Xiang Xiang Kun Wu Jiuding done before doing it again, and as early as 2010, single Xiang Shuang pairs of investment planning blueprint there, "listing" this plan.

In the past two years, Silicon Valley Paradise has been widely known as a listed company because of its frequent listing of listed companies. Silicon Valley Paradise looks more like an investment institution across primary and secondary markets.

Its executive president Bao Tao believes that the primary significance of PE institutions listed is "one more new financing channels." "We are not so fast on the new three boards. The new board will certainly be able to finance the future, many regulators have said this, and if the new board can not be financed, can not be transferred to the market how to survive? This financing is public offering, Our public offering does not mean that private equity can not continue.This is like, the bank listed to raise capital, but it also must absorb deposits.I do not think that many more investors in the open market will not manage well, this and LP are not the same, If shareholders are not satisfied with our performance, they can vote with their feet. "

One private-sector LP person said privately that as LP, they would not directly buy PE companies to manage the company's equity, but PE agencies would go public with GP-managed companies and they would be concerned. He also knows that many PE agencies are interested in this: "In recent years, the domestic fund-raising is not very smooth, if this approach can open a new way for fund-raising, everyone will study. We will also focus on this kind of Jiuding Way can not get through. "

A renminbi fund partner privately told reporters: "There are not many LPs in the domestic market. After PE agencies pin their hopes on the development of local FOFs (funds in the fund), insurance companies are not active as expected. In this case, if To raise funds through the listing channels, of course, is no better. "

He wants to market: drunk wine is not

Connaught investment management partner Wang Dongliang told reporters: "A lot of PE institutions want to go public, hoping for more fund-raising channels." Some management companies have a problem with the governance structure, then placed their hopes on the listing to improve the governance structure. "

PE institutions listed through the governance structure to improve, is a rather different group of PE agencies. They often have one thing in common: the management team is not independent. In other words, the managers of these institutions do not have ownership of PEs and do not have full dividend rights. There is a "husband's family" behind them. This one of the most common, but also devaluation of state-owned PE agencies.

A person close to the Shenzhen Venture Capital Group told privately: "Shenzhen Venture Capital has thought backdoor and wants to solve the mechanism problem, not the issue of fund-raising." Investment in venture capital institutions is well done and there is no need to go public. "

A person close to Fortune Venture Capital also told reporters that Fortune Ventures want to go public.

Shenzhen Venture Capital Group, Fortune Venture Capital in Shenzhen, they are first-class local PE institutions, behind the state-owned controlling shareholder. Most PE industry insiders know that the incumbent executives of Shenzhen Venture Capital do not have any shareholding interest in the company and have certain dividend rights. The current executive of Fortune Venture Capital Co., Ltd. holds only 25% equity and partial dividend rights of Fortune Venture Capital. The issue of this mechanism has always been the sword of Damocles hanging over the heads of two outstanding domestic venture capital institutions.

Cheng Jiamao, Partner of Huiheng Law Firm, told the reporter: "Recently, we are doing a project which is an overseas veteran fund Chinese team wants to list on the new three-board market. They did a good job in China and hope to implement it through listing Incentives for the Chinese team.This depends on the Fund's headquarters is willing to give, if not, maybe the investment team have run away.

Cheng Jiamao believes that the problems encountered by the Chinese team of this overseas fund are the same as those that many state-owned PE agencies want to solve. But its core is not listed, but rather its major shareholders are willing to give this incentive, "Some state-owned shareholders will think that equity is the loss of state-owned assets; and they feel that they have the industry resources for whom you can invest, you are high Tube to go go! If the major shareholders do not want to give incentives, then the listing can not be resolved.

In addition, Cheng Jiamao expressed a lot of attention to the listing of PE institutions, the current concern is mainly PE institutions, fund-raising, investment, respectively, with the LP and invested companies have signed a confidentiality agreement, if the PE institutions need to be disclosed in detail, is not it Have to go home to communicate?

Trader Jiuding investment listed Dacheng law firm senior partner Li Shou-double said: "(in the new board) listed do not need to disclose project details."

As for the PE agency boarded the new board, after the transfer to the motherboard, the need to disclose to what extent? It is more distant thing. (Editor Duan Xiaoyan Lin Kun)