Rare Trust products appear in venture capital CITIC Industry fund support Operation

Core tip: According to the sale of the product Shanghai Hongxing Wealth product manager, CITIC Loan Trust program is basically subscribed by large organizations, the remaining small amount to individual investors, before March 23, the product has been sold out.

Cao Yuan Shenzhen Report

The most money-creating institutions are now willing to pay high interest rates, CITIC Industrial Investment fund Management Limited (hereinafter referred to as the Citic Industrial Fund) to the deep industry's venture to understand.

If there is no accident, Cofco Trust and Citic Industrial Fund Trust Loan Collection Fund Trust Scheme (hereinafter referred to as CITIC Loan Trust scheme) will be completed as scheduled March 23. The trust is scheduled to be funded from March 19, with an interest rate of 8.5% to 9%, to be issued at 400 million yuan. Surprisingly, its purpose is to operate the Citic Industrial Fund on a day-to-day basis.

At the end of 2010, Citic Industrial Fund had just made a round of financing, the registered capital increased from 100 million yuan to 1.8 billion yuan. For a light asset finance company, this is enough for a while, and the CITIC Industry fund manages 4 of the industry's big-MAC funds, with management fees enough to operate on its own, and why trust-raising?

"It's hard to understand. "said the chairman of the Shenzhen Venture-investment company. A long-term research venture investment agency of the securities researcher also said that the creation of the trust is not for the fund to operate the company is very rare, not to mention a rich venture investment.

Rare trust financing in venture capital

"Do you want to consult the CITIC Industrial Fund (loan) of that product?" "In the name of the product that has not been reported to consult, the staff of Cofco Trust have guessed the purpose of the customer calls:" These two days customers are consulting this product. ”

According to the sale of the product Shanghai Hongxing Wealth product manager, CITIC Loan Trust program is basically subscribed by large organizations, the remaining small amount to individual investors, before March 23, the product has been sold out.

In fact, the CITIC Loan Trust scheme does not take advantage of the return rate compared to the trust products issued over the same period. According to the Profit Trust workshop, the average expected return on trust products was 9% in the week from March 19 to March 23, the highest return on products was 12%, and the CITIC Loan Trust scheme rate was only 8.5%-9%

On the other hand, Citic Industrial Fund is a light asset company, if through bank loans, without collateral, the bank will certainly not lend. Even so, investors will not be able to stop the Citic Loan Trust scheme.

Li Yu, head of the Trust studio, also said it was a rare trust program. Historically, VC companies have used trust financing for two purposes: to raise equity investment funds or to invest in projects already listed, and to pledge the shares of listed companies for other purposes of the Fund. Li Yu said: "An investment company through trust Loans for the company's own operations, has never seen in history." ”

What makes investors interested is the lack of money for CITIC industry funds. CITIC Industrial Fund was established in 2008, but it was founded on the industry, because it raised a 9 billion yuan fund-CITIC Equity investment Fund phase (Mianyang Fund). and has been invested by the Council of Social Security funds. Subsequently, it raised a scale of 990 million U.S. dollar Citic Equity investment fund Two (USD), a scale of 10 billion yuan Citic Equity investment fund Three (RMB), and a scale of 5 billion yuan Citic Mezzanine Fund phase. CITIC Industrial Fund total Management fund reached 30.2 billion yuan.

VC companies generally charge about 2% of the fund management fees for the operation of the company, if the CITIC Industrial fund can reach this level, then the company's management fee for a year more than 600 million yuan.

In addition, in December 2010, the CITIC Industrial Fund made an increase in capital, with a registered investment of 100 million yuan to 1.8 billion yuan. The shareholding ratio of CITIC Securities is 35%. Other shareholders were not disclosed.

Has the industry envy huge management fee income, also has the industry rare high registered capital to do the foundation. But to send high interest rate products.

According to the industry, Citic Loan Trust plan to choose Cofco Trust and did not choose CITIC Trust is to reduce the cost of distribution. The trust management fee for Cofco trusts is about 1% to 1.5%, while Citic trusts up to 2%.

In addition, the Trust company will also charge about 2% of the fiduciary remuneration, on the basis of which the real interest rate of CITIC Loan Trust scheme is about 12%. The plan financed 400 million yuan, a period of 1 years, according to the calculation of the cost of financing 48 million yuan.

For the vote?

March 23, the reporter contacted Citic Industrial Fund, but its public contact way no one answered. An employee of the company also expressed no knowledge of the matter.

Will it be that the substantial increase in corporate fees would require the CITIC Industrial Fund to have short-term liquidity?

At the beginning of March, the fund industry veterans, the original 邹唯 fund Theme Select fund manager formally left the 9-year fund, his next stop is Citic Industrial fund. Prior to that, the investment director of Chinese Business Fund Zhongtao also joined the company. 邹唯 and Zhongtao are public offering fund industry star fund manager. It is understood that Citic Industrial fund also dug the fund industry other people. CITIC Industrial Fund has more than 60 people to invest in research staff.

Shenzhen, a venture capital company chairman introduced, the main cost of VC company is labor costs, a qualified project manager annual salary of 500,000 yuan. The Star fund manager's annual salary is 10 times times that in the fund industry.

The Shenzhen venture capital company Chairman said that the company's more than 20 employees, plus travel costs, a year operating cost of 15 million yuan. CITIC Industry fund operating costs may be over billion a year. However, compared with the company to extract management fees, CITIC Industrial Fund issued 400 million Yuan loan trust is difficult to understand.

"There is also the possibility that the CITIC Industry fund is for the purpose of voting." Said the former brokerage researcher.

CITIC Industrial Fund accelerated its investment frequency in 2012. February, the French luxury giant Vuitton (LVMH) group's investment fund L Capital has teamed up with Citic Industrial fund to buy the women's brand of European Time Force (ochirly) 10% shares. Cost 200 million dollars.

March, Merrill Lynch Holding Group and CITIC Industrial Fund formed a strategic partnership, the two sides on Citic Industrial fund shares Merrill Lynch Holdings subsidiary-Beijing Jia Lin Pharmaceutical Co., Ltd. reached a consensus.

In March, CITIC Industrial Fund also combined the CDH investment, New Horizon Capital from MBK to buy Green Leaf Pharmaceutical Group Co., Ltd. 55% of the equity.

At the end of January, Citic Industrial Fund also joined 31 Heavy Industries to buy the industry known as the "Elephant", the world's concrete machinery giant Germany Putzmeister 100% stake in the agreement.

The investment Problem of giants

In addition to this trust loan so that the industry can not understand, in just 4 years, CITIC Industry fund has become the control of the capital of 30 billion yuan, how the investment also let the industry puzzled.

"We managed only 800 million dollars, and it was very difficult to find projects and projects," he said. "The general manager of the venture capital Company believes that Citic Industry fund investment will be more difficult in times of less money and more projects." He introduced that his company received more than 1000 projects a year, but only 10 more were left after the fine selection.

Undeniably, the well-connected Citic Industrial Fund has a natural brand advantage, in its peers also for the popularity of the time, backed by CITIC Group Citic Industrial Fund can easily let investors and enterprises to dispel the initial doubts.

It can not be denied that Citic Industrial fund in the beginning has a better investment process. From the time of the project, the Citic Industrial Fund has a standard set of procedures to control risks as much as possible, according to the company's media interview.

But from the actual situation, Citic Industrial Fund investment in some projects still exposed to problems.

July 2009, the total share of the river curtain wall increased to 450 million shares, of which Citic Industry under the Mianyang Fund to invest 209,038,910 Yuan to subscribe 25.0346 million shares, accounting for 3.3% shares. At the same time, the Mianyang fund to buy 30,978,378 yuan Beijing River Source industry and Trade Limited liability company held the river curtain wall 5.59% of the equity is 14.9654 million shares, the transfer price of 2.07 yuan per share. By the end of the listing, the Mianyang fund holds 7.14% of the river curtain wall.

But in the course of the process, the river wall was exposed to the tender contract may be false. Although the final river wall has been successful, people have been sweating the CITIC Industrial Fund.

But China's wine-drinking line is less fortunate. September 2010, the new Days of the Fund (Pulock and New Vision growth), CITIC Industrial Fund related funds (CV Wine), KKR three PE institutions to invest in China liquor, a total of 20.38% of the equity, the total investment amounted to 1.2 billion yuan. At the end of last year, the Chinese wine Bank hit A shares for the first time will be.