Right game + conflict of interest private equity "breaking up" tide emerges

From the sixth session of the Private Placement forum, as of the end of 2011, the country has a total of 617 private equity managers, Sunshine Private equity fund products up to 1789, the total scale is as high as 160 billion yuan, compared to 2010, the size of the increase of 40 billion yuan.

With the increasing of sunshine Private group, the ecology of private placement is change rapidly. In the past two years, private-equity breakup has sprung up, splitting up, breaking up more and more, and some peaceful break up, and some are mutually undermine, lose.

What are the commonalities behind these endless "breakup" cases? The daily economic news has launched an investigation into the impact of the old club.

Private-Equity breakup boom

The annual Private Placement Forum is now being held in Shenzhen, but the limelight has been completely snatched by two of people. Two leading characters are: Lu, Shanghai calmly chairman, private-equity boss, former investment director of Morgan Stanley, Jiang Guang Policy, senior researcher in pharmaceutical industry.

In fact, in recent years, the case of private placement has emerged. Also is born public raise, also is the Star fund manager's Zeng Zhaoxiong, recently also left CEO home, has created own private placement. Prior to that, Zeng Zhaoxiong was working for a winning investment. Zeng Zhaoxiong's response to the reason for the breakup is the idea of disagreement. Earlier, another veteran of Liu Jue's investment also left the winning portal.

But the difference is that Zeng Zhaoxiong, who broke up peacefully, said he had reached a consensus with major shareholders that 3 of the 6 Sunshine private-equity products would be managed by Zeng Zhaoxiong's new company.

A bull market can make a group of people, but bin is one of them. After the 2008 Big Bear market, the situation changed dramatically. The reality of the loss let but bin "holding shares" practice is criticized by the outside world. In the face of outside doubt, bin doesn't seem to be changing, as he has been able to learn from his blog, which he updates almost every day.

But Bin's investment philosophy is not acceptable to everyone, including even his early partner, Chong, who "parted ways" last year.

Chong after leaving a new company, business registration data show that the company was founded in April 2011, the full name is "Shenzhen Oriental Harbor Asset Management Co., Ltd.", and the previous company name only "suffix" is different. Obviously, neither side wants to give up the reputation of the "Oriental Harbour" this sign, even two companies registered a very similar address: one is Shenzhen Fu Zhong San Road Connaught Financial Center 27 Floor, the other is Shenzhen Fu Zhong San Road Connaught Financial Center 27 Floor-01. In addition, the new company established in Chong, but bin also holds 20% shares.

In the 2008 Big Bear Market, Shenzhen Kingzhong with a long time empty warehouse and seize the period of rebound, won the championship, and at that time the core figure Deng Jijun has also been "solo."

At the end of 2010, Golden and the investment director of the website Deng Jijun, research director of the name of the Peng hearing has disappeared, it is understood that two people set up a partnership. For the reasons for the breakup, Deng Jijun publicly said it was not because of golden and performance decline, but the investment philosophy is divided.

2009, Guangdong New value fame, Loweigung as fund manager of the new value of 2 period to 192.57% revenue won the Sun Private champion, but another new value of the fund manager is also the same, he is the Tangxue, the management of the product to 156.66% of the return of the year won the second.

However, Tang Shelai soon chose to set up their own, in Shenzhen, established a Shenzhen Wealth Growth Investment Co., Ltd. Sunshine Private, by virtue of the new value of the accumulation of popularity, Tang Shelai continuously issued a number of products, performance is quite decent.

Wenting, vice chairman of Shenzhen Elite era, also left the original company and founded a company named Shenzhen Fu to invest in management. For the reason of leaving, Wenting's argument is also the investment idea and the old club is not very consistent.

Some noisy, some is a peaceful breakup, but the case of private placement is gradually increasing, and most of the star private equity, what do they have in common behind?

Equity composition Home Inducement

"Private equity is also a kind of industry, can not escape the" long will be divided into a long time will be combined "industry integration law. In the current financial manager impetuous and bear market continued background, more prominent. In our opinion, the common factors of the separation of private placement are two: The first is the bear market background, private equity decline, the decline in performance directly led to the reduction of income and distribution of injustice, economic factors is the absolute main reason; Secondly, Shang, the management of the predicament and pressure from customers, often lead to changes in the internal governance structure of the company, The change of equity and personnel becomes the inducement of the separation. "Li Yushu, senior researcher from one Private Placement research center, said to the daily economic news reporter.

Private equity break up, will inevitably with CEO home bring Impact, then exactly what effect?

"On the one hand, these private equity managers leave the star halo of the original product, and will take away some familiar customers, on the other hand, customers will take over the product of the private equity managers have concerns." Therefore, for this reason, some customers will be able to redeem their products. Also, is the departure of the old club took away the backbone, after all, private companies are not many staff, short-term will cause shortage of manpower. will also have a certain impact on the structure of the original investment team. For example, Wenting left the elite era, take away Vice President Su Zhijian, Deng Jijun away research director Peng. Finally, the vicious breakup, the two sides pinch each other, there is redemption. "Li Yushu that the Jiang Lu incident has in fact made the original customers more or less confidence in the company, the company's image caused serious damage." ”

The effect is not optimistic

After the breakup, most of the choice to start their own, but from the effect of the look is not ideal. "The effect of doing so, for the moment, the vast majority of single flight fund manager performance is not ideal." and private placement time is still short, and now can not make a conclusion. The main reason is because the market is not good, whether solo or partnership can not escape the background of the bear market, on the other hand, because of leaving the original company, the new company investment research team immature and running-in problems. ”

Another way of saying, sunshine private often "a mountain not two tigers".

Li Yushu that in private-equity circles "a mountain not two tigers" is not inevitable, the biggest conflict stems from the founder and join (Partnership) Fund managers. In fact, in private-equity circles, as long as the benefits are allocated properly, the internal core staff structure can maintain stability. Of course, most of the time the founder (major shareholder) is unwilling to cede some power or interest to conflict. So it is often "can share bitter not with Gan".

So many more and more cases, then the private-equity "noisy" break up behind the end of what is the underlying reason?

"We think that the deep reason for private placement is the game of rights and the conflict of interests, not the investment idea or the difference of people's life." This has been in the Jang Guangze and Lu after the escalation of the incident is vividly demonstrated. In addition, the management of private-equity companies has long been a problem, private-equity companies due to small size, little to pay attention to corporate governance, decentralization of power, insufficient incentive mechanisms are common phenomenon. "Guangdong Finance Research Association, Deputy Secretary-General, one private equity network study director Liu Jinyi Analysis Way."