In fact, the best thing about PE in China is that it will withdraw its investment as soon as it is listed. This can not only earn maximum profits, but also shorten the investment period and avoid risks.

Refer to this professional article:······Block trading in the A-share market remains very active.

In these increasingly active secondary market block transactions, the subjects of shareholding reduction are very diverse, including the company's founding shareholders and executives, as well as external investors such as PE/VC, and many signs show that PE/VC

is becoming an increasingly important player in this transaction.

"There is an institution that has a stock that is about to be lifted. Originally, I wanted to go to that institution to talk about reducing its holdings and letting us take over the stock. But just after meeting him for a few minutes, I heard the phone call he answered.

At least two of them talked to him about this," said an investor who is engaged in taking over large transactions in the secondary market.

This is not an isolated case. The competition for large-scale transaction projects has already heated up, and the same feeling can be found from investment institutions themselves.

"There are many investment institutions interested in cooperating with us and seeking large-scale transaction projects." Pan Jin, vice president and financial director of Chuangdongfang Investment, previously told reporters.

It is understood that most PE institutions reduce their holdings through block transactions, and many investment institutions choose block transactions because of their attractive profit-making opportunities.

During the interview, the reporter found that at present, general large-scale transactions can get about 95% off. After deducting transaction and intermediate costs, if everything goes well, there will be a profit margin of about 5%. If the current market conditions are ideal, it is not difficult to earn 10% sometimes.

If investment institutions fully and reasonably arrange the acquisition time and pay attention to capital efficiency, the income of several percent a year will not be a problem.

As long as there are enough projects and funds continue to roll in the market, the annualized income will be very considerable.

In fact, transactions with 9.6% off and 9.7% off often appear; a year or two ago, 10% off was often the average discount price for large transactions. However, in recent years, as the competition among buyers has intensified, the bargaining power of sellers has increased.

Keep getting higher.

More and more institutions in the investment circle are specifically targeting large-scale transactions. All kinds of investment institutions are eyeing this market. Some people with experience in private equity fund investment pooled some money and started to make such investments.

Institutions such as Shanghai Hanye Investment and Qiyi Investment are already well-known in the industry.

A partner of Jiuding Investment bluntly said that judging from the current market environment, this is a seller's market in which the party selling shares takes the absolute initiative. "It is the people who take over the shares who are asking for the sale." PE/VC institutions have become

The business targets that these takeovers focus on are generally large PE/VCs that hold a large amount of equity in listed companies and their demand for reduction of holdings is established, so the takeovers have found various resources to connect with PE/VC.

"In addition, introducing them to the actual controllers of listed companies through PE/VC relationships is another plan of these takers. Although it is difficult to establish relationships, at least they can obtain basic information." The above-mentioned people engaged in large-scale transactions in the secondary market

The name of the investor who took over the deal.

The Art of "Selling" PE/VC As investors in listed companies, their need to reduce their holdings of unblocked tradable shares is established, but the timing of their exit is extremely sensitive. On the one hand, it is easy to put pressure on the short-term stock price performance of listed companies.

Second, it may affect the confidence of other external secondary market investors in the company's growth.

"When to reduce holdings has a great impact on the performance of a single investment project. For example, if we invest 50 million yuan in a company, the equity will be worth several hundred million yuan after listing. If we can reduce holdings at a time when the stock price is higher, the income will naturally be high.

, if it falls by 10% and then sells, the less money may be equal to the amount of a single investment project," Liu Zhou, chairman of Dachen Venture Capital, once told reporters.

The importance of the timing of selling also determines the income of PE/VC. Venture capital institutions that focus on capital efficiency hope to recover funds faster to return investors, or to find other suitable investment opportunities; therefore, some PEs set

A strict reduction principle has been established. For example, Dachen Venture Capital has determined that it will generally reduce part of its holdings soon after the ban is lifted, and the remaining part will be determined by timing and the company's growth.

Zhengzhou Coal Machinery (601717.SH), a company listed on the Shanghai Stock Exchange, has experienced a wave of holding reduction frenzy since the second half of last year. According to rough statistics from Zhengzhou Coal Machinery’s prospectus, there are no less than 14 PE/VC funds entrenched behind Zhengzhou Coal Machinery.

, including Shanghai Lianchuang, Shenzhen Venture Capital, Shanghai Liyan Equity Investment Center and many other local investment institutions, while Shenzhen Venture Capital, Shanghai Liyan, etc. have also begun to reduce their holdings.

Previously, one of the PE institutions told reporters that they were reducing their holdings in the stock. The reporter noticed that at that time, Zhengzhou Coal Machinery's stock price had been very stable despite the bad general situation, and even rose sharply from time to time.

In the four business links of PE/VC "financing, investment, management and exit", the importance of exit has already emerged. Obviously, the IPO of a company does not mean the exit. The real exit is the completion of cash after the ban is lifted.

For this final step of "exit" in the A-share market, various PE institutions also attach great importance to it, but they differ in the specific timing of holding reductions and cooperation in the takeover structure.