600 billion private capital is poised for "passionate love" PE: like Pre-IPO investment (VC341)

Quanzhou, one of the three central cities in Fujian Province, is known for its developed private economy and abundant private capital. In the context of the continued downturn in the stock market and the real estate industry's slump, local private capital has entered the field of equity investment. While meeting the funding needs of financing companies, it has also achieved a rich return on investment.

600 billion private capital ready to go

"Capital has a natural profit-seeking nature, so equity investments with high expected returns are highly sought after by Quanzhou private capital," said Chen Quanzhou, deputy general manager of Quanzhou Shengshi Investment Consulting Co., Ltd .. Quanzhou entrepreneurs, who already have ample capital accumulation, began to turn their attention to the field of equity investment, intending to show their talents.

It is reported that just as the chairman of the Peak Group Xu Jingnan vowed that "equity investment, we will definitely do it", Zhou Shaoxiong, chairman of Seven Horses Co., Ltd., invested $ 15 million in NVC Lighting. Shares, accounting for 12.28% of its total share capital before issuance. Later, the Hong Kong Stock Exchange issued an announcement that Hengan International indirectly acquired a 51% interest in Qinqin Food Group at a cash consideration of approximately 229 million yuan. The familiar "Qinqin" jelly from the public has since been branded by Hengan; Hongqiao Chuang Invested 16 million yuan, increased capital and invested in Weibo Food Co., Ltd., a high-tech enterprise engaged in R & D, production and sales of edible flavors and food ingredients.

"Due to the strong demand for corporate financing at different growth stages, Quanzhou private capital is more active in participating in corporate financing through equity investment, showing a clustering development trend." It has been learned from relevant departments that the current scale of private capital in Quanzhou is about 600 billion yuan. There are more than 30 various equity investment fund enterprises established by Jinjiang entrepreneurs nationwide, with an estimated investment of more than 20 billion yuan and natural person equity investment of more than 30. 100 million yuan.

The return on investment is substantial

"From the current point of view, the main way for local private capital to intervene in equity investment is to set up venture capital institutions and invest in Pre-IPO (listed companies) projects with listing potential." Chen Quanzhou said that the targets of equity investment mainly include animation and service industries For start-up light asset-based companies, growth companies with a certain scale and strength, and large-scale mature companies with monopoly resources, the difference between the three is mainly reflected in the return on capital and capital in addition to the project size and cycle length. The difference in return rate.

"Among the three, growth-oriented enterprises such as listed companies and listed reserve companies are keen investment targets of local private capital," said an equity merger lawyer who has long paid attention to the capital market. It is reported that in addition to the "Seven Wolves Myth" that held more than 80 million shares of Industrial Bank and obtained billions of yuan in investment income after the Industrial Bank was listed, Hongqiao, Jinba and Qi brand equity investments have also been optimistic about growth companies. Red Bridge Ventures subscribed for 3.5 million shares of Xuzhou Helen Zhe Company, which specializes in the production of special vehicle products such as high-altitude operation vehicles, electric repair vehicles and mobile power supply vehicles. After its listing, it obtained 7.25 times the exit return. Prior to this, it invested in the large paper-making company Ulanfa Group, which was later listed on the Hong Kong stock market, and Zhongyu Building Materials, which was listed on the main board of the Frankfurt Stock Exchange in Germany. And Jinba's shareholding in Sanyuanda Communications also fancyed its growth before listing.

"Private capital invests in the equity of growth-oriented enterprises, what they value is their generous return on capital," Chen Quanzhou said that once this type of company is listed, it can often bring higher capital returns to investors, but there are also more and more Many private capitals have begun to try to accompany the growth of enterprises, regard them as strategic partners of their own enterprises, interact with them benignly, and integrate the cooperation ecosystem.

Capital operation should be cautious

"The local private capital's equity investment has formed a trend, but it is still in its infancy. There is a lack of classic operation cases, and no complete system has been formed." According to Chen Quanzhou, in fact, local companies such as Seven Wolves and Fengzhu are also before and after their own listing The first lesson they have learned from equity investment is also from the external venture capital institution's equity investment. Their experience is obviously insufficient, so they should still explore and learn with a humble and pragmatic attitude.

"I don't think about it, I want to retreat first, and I want to buy it for sale." Qing Tuan, deputy general manager of Qipilang Group Co., Ltd., said earlier that the relationship between the equity investment entity and the invested company is a staged marriage. Through the law of equity investment The relationship is combined, no matter how long or short, equity investment must withdraw at the end, otherwise it is a failed investment, so before entering, we must consider the exit time, exit method and exit threshold.

Ni Zhongsen, chairman of Hengrun International Capital Co., Ltd., also suggested that if you switch from an industrial economy to capital operation, you must follow the rules of the game of the capital market operation. In the case of insufficient capital, it is best not to get involved.