The second stage took place in 1997- 1998. The primary market was very active, and listed companies entrusted the idle funds raised from the stock market to the lead underwriter for investment. The underground private equity funds that appeared in this period are closer to the private equity funds in the strict sense, and most of them appear in the form of companies. The company law stipulates that most of the assets of an enterprise cannot be invested in the stock market, and investment consulting companies can only do simple consulting business. But in fact, many consulting companies have been manipulating a large number of underground private equity funds by means of "principal-agent". And some investment companies are essentially private investment company funds that give consideration to financial consultants and restructuring services, often relying on some securities companies, which can have a certain impact on the whole market.
The third stage is 1999 to the middle of 2000. Due to the overheating of various "investment management companies", a large number of employees of securities companies left their jobs, especially a group of senior securities personnel who came out of 1999. Because of their familiar professional knowledge and their marketing skills, they have formed a great response in the market after entering this field. In addition, during this period, comprehensive brokers can engage in asset management business with approval and be entrusted with the management of cash, national debt or listed securities. After the underground secret was changed to the public on the ground, the competition among brokers in this business became more intense. Some securities companies have the same commitment in asset management business, such as ensuring the recovery of principal and ensuring the annual rate of return. In this case, in order to obtain more funds to obtain higher returns, brokers have raised the capital requirements for the entry threshold. It is understood that some brokers require at least tens of millions of yuan of funds.
It is precisely because of the above characteristics and advantages that private equity funds have developed rapidly and occupied a very important position in the international financial market. At the same time, it has also trained investment masters like Soros and Buffett and international financial "snipers". In China, although there is no public and legal private equity investment fund, many non-bank financial institutions or individuals engage in collective securities investment business, which has the characteristics and nature of private equity funds to some extent.
It is reported that the total amount of existing private equity funds in China is at least 500 billion yuan, most of which have been regulated by the relevant market regulations and management regulations of the United States, and a large number of industry elites and economists have gathered. But the fly in the ointment is that they can only live in the underground world without sunshine in obscurity.
After China's accession to the World Trade Organization, the opening of China's fund market is not far off. According to relevant agreements, foreign capital can enter the China market within five years, and the fierce market competition in the future can be imagined. Therefore, many people of insight call for giving private equity funds a clear legal status as soon as possible, so that they can enter the sunshine zone as soon as possible. This is not only conducive to standardizing the management and operation of private equity funds, but also conducive to creating a fair, just and open market competition environment, reducing transaction costs, promoting financial innovation, constantly creating and enriching financial products and investment channels in the securities market, and meeting the increasingly diversified investment needs of investors.
According to industry estimates, the total amount of underground private equity funds in China far exceeds that of closed-end funds listed in Shenzhen and Shanghai. Its total amount is conservatively estimated at around 200 billion yuan, and the higher estimate is 500 billion yuan. According to this estimate, considering that these private equity funds mainly invest in the securities market, we can think that although the share capital and net value of securities investment funds listed in Shenzhen and Shanghai account for less than 4% of the circulating market value, with the participation of private equity funds, this ratio may catch up with or even exceed the level of developed countries such as the United States (18% in 1999).
Therefore, private equity funds are strong, and the securities regulatory authorities need to formulate relevant laws and regulations as soon as possible, and gradually standardize and guide them on the right development path. Although the development of China's private equity market is spontaneous and underground, it is not messy, but reputation-oriented and orderly, and so far there have been almost no major disputes. It is precisely because of the marketization of private equity funds that many problems that are difficult to solve in Public Offering of Fund have even been solved here.
The first is the incentive compatibility between fund holders and managers. According to the provisions of the Securities Law, the daily remuneration of fund managers who raise funds publicly is 1.5% multiplied by 1/365, which is quite high. This directly leads some fund managers to hope to increase their net assets in a short period of time to benefit, but when the dividend comes at the end of the year, they quickly reduce their net assets, which is easy to cause illegal operations. Its income is extracted from the year-end dividend in proportion, which makes the interests of fund holders and managers consistent.
Secondly, the risk-taking mechanism of fund managers. Internationally, fund managers generally hold 3% to 5% of the shares of the fund. Once a loss occurs, this part will be used to pay in advance to ensure that the interests of the manager and the fund are tied together. Most private equity funds in China also adopt this method, but the difference is that the ratio is as high as 10% to 30%, so when losses occur, the fund manager suffers the most. The reason why the proportion is so high is that the credit system in China has not been fully established, and at the same time, it is difficult to attract capital to join because of its underground operation and high risk.
The third is the active selection mechanism of fund managers to fund holders. It is said that a private equity fund with a scale of 7 billion yuan put forward "eight don 'ts" to capital holders when recruiting: the funds should not be less, generally more than 30 million per person; Do not ask for a fixed return; Don't spend a short time.
The fourth is the complete marketization of financing and investment methods, many of which may touch on financial management regulations. In private equity funds, some illegal but reasonable practices are very popular.
Fifth, private equity funds began to pay attention to the governance mechanism.
In the third quarter, A shares continued to fall, but the third quarter report released by Industrial Trust Company showed that most of the private equity funds issued in cooperation with it maintained high positions at the end of the third quarter.
According to the incomplete statistics of private placement network, the third quarter management report of collective fund trust plan issued by Industrial Trust shows that the average position of 82 sunshine private placements at the end of September was 66.9438+0%. Among them, 28 products account for over 90%, accounting for 34. 15%, while almost all of 16 products operate in Man Cang, accounting for over 99% of equity assets, accounting for 19.5 1%. In addition, the number of private placement products with positions between 70% and 90% is 16, accounting for19.55438+0%; The number of products with 50% ~ 70% positions is 14, accounting for17.07%; There are 24 private placement products with positions below 50%, accounting for 29.27%, among which 5 private placement products with positions below 10%.
In addition, with the explosive growth of private equity funds in recent years. According to the financial statistics of Geshang, there are more than 500 private equity fund companies, with the total number of products exceeding 1 000 and the scale exceeding 1 50 billion. The asset management scale of many private equity fund companies has exceeded 5 billion yuan, and the initial scale of many private equity products has exceeded 654.38 billion yuan, comparable to public offerings. According to the financial statistics of Geshang, there were 372 fund manager changes in Public Offering of Fund in 20 10, an increase of about 70% compared with 2009. At the same time, 192 fund managers resigned, an increase of 64% over 2009. It can be seen that the manager turnover rate in Public Offering of Fund is amazing, and
With the coming of 20 15, the use of insurance funds has been refined one after another. Among them, the approval of insurance funds by the China Insurance Regulatory Commission to set up private equity funds to support the development of small and medium-sized enterprises is particularly interesting.