Private placement, that is, private investment funds, refers to investment funds that are raised from qualified investors in the form of non-public offering and invested in investment targets such as stocks, equity, bonds, futures, options, fund shares, etc. ) stipulated in the investment contract, referred to as private equity fund.
The reform of non-tradable shares is the established goal of the government. After the reform, the number of tradable shares in China stock market will be 3-4 times that before the reform. The acquisition between listed companies will also be much simpler than before full circulation.
The pressure of hostile takeover will also force the management of existing listed companies to cooperate more closely with shareholders to avoid the passive situation of being acquired. In addition, after full circulation, in order to achieve the purpose of industrial expansion, mutual acquisition between listed companies will also become easier and more meaningful for improving economic efficiency.
Usually, no matter what form of acquisition, listed companies will have a great impact on their financial structure and lead to changes in stock prices. This change will inevitably bring changes to the investment model of private equity funds. Some of these private equity funds focus on this business, from general speculative private equity funds to partnership funds (M& fund) specializing in mergers and acquisitions of listed companies and even industrial mergers and acquisitions.
This buy-out fund is one of the huge private equity funds in the financial markets of developed countries. Take the American Carlyle Group, which has gained a lot in China, as an example. The company's own funds are about 8 billion US dollars, and the investment-driven funds can reach 80 billion US dollars, which is more than the total of all private equity funds in China A-share market.
With strong financial advantages, political advantages and well-known contacts in global capital, some M&A projects can basically be operated by surgery, that is, overall acquisition, and they can obtain an annual return rate of more than 30% without great efforts and be listed on overseas capital markets. In addition, the parent company of CapitaLand, a very active real estate investor in the Mainland, is a wholly-owned subsidiary of Guardian Land Group, a large real estate company listed on the Singapore Stock Exchange. These international investment institutions look at opportunities from the perspective of global finance and skillfully combine assets and arbitrage in transnational financial markets.
With the rapid development of international private equity funds, the policy restrictions of private equity fund industry in China will be gradually relaxed. With the current size of China's securities market, private equity funds with about 300 million yuan of self-owned assets can explore in this direction, and drive investment of about 654.38+0 billion yuan through triple leverage ratio. In addition, we should further study the business model of international M&A funds and strive to find arbitrage opportunities in transnational financial markets.