At present, the rigid redemption of trust projects and the scarcity of trust licenses are still recognized by high-net-worth customers.
Question 2: The main reason why trust and investment funds nest in limited partnerships may be that trust and investment funds invest in equity. Equity products are generally held by limited partnerships. This is to facilitate the management of assets under the trust.
Question 3: Why do trust investment funds nest limited partnerships? There are usually two purposes:
1, for convenience, because the establishment of a limited partnership only needs to go to the industrial and commercial bureau for filing. It is convenient for fund companies to operate. It saves a lot of expenses. For example, if you find a trust company or an asset management company to do the channel, they will also charge the channel fee.
2. In order to manage the fund property well, the main reason for the limited partnership structure for this purpose is that the fund belongs to the stock fund and invests in equity. Establishing a limited partnership is convenient for holding the equity in the fund assets. The main purpose of the limited partnership here is to hold shares on behalf of others.
Question 4: Can the trust be the LP of private PE? If so, then after PE has invested in the project, if the project goes public, this should be an obstacle, right? 1. Can the trust be the LP of private PE?
Certainly not at present.
① Regulatory level: In 2008, the CSRC stipulated in the Operational Guidelines for Private Equity Investment Trust Business of Trust Companies that there should be no trust plan between the former shareholders of an ipo, but it did not specify whether the LP of PE was a trust plan. Literally speaking, the plan itself is feasible. However, due to the high uncertainty of PE investment, the regulatory authorities are not allowed to have a trust plan behind PE before the IPO, which is directly supervised by the CBRC, and such trust plans will not be submitted for approval. However, at present, CITIC Trust and Ping An Trust have set up relevant GPs from 20 1 1, waiting for the policy to be opened.
② Trust level: * * Trust plans are basically debt-based projects due to invisible redemption demand, and stock-based projects are also common in real estate with strong counterparty strength, such as Vanke. Moreover, such projects are easy to measure the yield, the yield is relatively stable, and the term is relatively fixed, which does not correspond to the high yield and high risk corresponding to PE. Therefore, as far as the trust itself is concerned, he will not take such a job outside. Few trust companies have such innovative business departments. Furthermore, if the supervision is open to them, the trust will be very strict in choosing its counterparty. Generally, they will set up their own GPs instead of using external GPs. A powerful GP must have the ability to raise funds and find a trust to raise funds. Generally speaking, the financing ability is very limited, and the strength of GP itself is generally not too strong. Therefore, it is unlikely that the trust itself will choose to cooperate with such an institution.
③ Similar projects: Recently, due to the outbreak of the trust industry, many PEs have also been transformed into fixed-income limited partnerships, and some are nested in trusts through partnerships, that is, FOT (trust plans are all single trusts, and trust companies do not bear factual risks, which may mislead customers); There is also a trust embedded in the partnership private equity fund, namely TOF (Jingu Trust, which has had such products with the investment company of its shareholder Cinda Assets before). Because these two forms mislead customers to a great extent, the trust will ultimately bear the responsibility. Therefore, this kind of business will be stopped as long as it involves raising funds and doing * * *, whether it is FOT or TOF.
2. Is there any good solution?
The idea that private PE should be financed through trust should be dispelled as soon as possible. This system does not allow marriage between nobles and civilians. There are countless such examples in China's financial market. Even if you get married, it is still difficult for your children to enter this world. If you have the energy and time to deal with this kind of thing, it is better to do PE step by step.
Today's PE industry has gone from bud to full PE, and the IPO is in a downturn. Compared with the time period of PE, there is indeed a good prospect for PE at present. Many former PEs have to seek to quit, and now new PEs can buy some high-quality enterprises that have been cultivated for three to five years at a lower price. As far as fundraising is concerned, PE itself is a private placement for a specific group of people, which requires the managers of GP itself to have a certain popularity (which is one of the reasons why Xue Laohan and others use tools such as Weibo to enhance their popularity). Managing partners can rely on their good investment performance and popularity to attract funds, which is the most routine.
If a PE does not have the above capabilities, then it is a PE with high risk and strong uncertainty, but it is not impossible to finance. The best way is to marry some private third-party financial management. These people with very strong fund-raising ability can be found in the form of GP allotment, so that they can enjoy a fixed financial advisory fee during the fund-raising period and be linked with the growth of GP. (In fact, the funds raised by Sequoia Capital in the early stage also depend on noah wealth, a third-party wealth manager). It's just that the motivation to simply sell to a third party is not enough now, so the way of allotment is effective * * * This is the motivation for PE to raise money.
Question 5: What are the hazards of asset management nesting? Do you want to be banned from nesting trusts by the new asset management regulations or take a fancy to the recognition of current trust projects?
At present, the rigid redemption of trust projects and the scarcity of trust licenses are still recognized by high-net-worth customers.
Question 6: As the main body of equity investment, will there be obstacles in IPO? As the main body of equity investment, the trust plan appeared in 2005 (Bohai Bank was established on February 30, 65438 of that year, and the * * * trust plan established by introducing foreign investors Standard Chartered Bank and Tianjin Trust through raising private equity funds caused quite a stir at that time).
However, the real development of trust in equity investment began in 2008.
On June 25th, 2008, China Banking Regulatory Commission issued the Operational Guidelines for Private Equity Investment Trust Business of Trust Companies. This provides a clear legal basis for entering the field of equity investment in the form of trust plan. After that, many private equity investment funds with trust system appeared.
Unfortunately, the good times did not last long.
Soon, the CSRC said that before the company went public, there were many people who bought shares in the trust plan, and they must be cleaned up, otherwise they would not be released.
Some people think that this is the result of the departmental game space, but there should also be the following reasons for the rapid flight:
First, trust shareholding breaks through the limitation of the number of shareholders in the Company Law and violates the relevant provisions of the Securities Law on public offering of securities;
Second, trust companies, as trustees, should keep the relevant information of beneficiaries confidential, which conflicts with the principle of information disclosure in the capital market;
Third, the trust registration system is lacking, and trust companies, as shareholders of listed companies, cannot confirm their holding relationship.
Whatever the reason, the road is blocked anyway.
But the trust system has indeed made a number of funds (several of which are now very well-known and very successful), because they have invested in a number of very good projects after raising funds through the trust. Later, when the IPO was not possible, the equity was transferred to the affiliated company, which basically did not affect the exit.
2065438+April 2002, the CBRC and the senior management of the CSRC reached a consensus on restarting the trust plan and opening a securities investment account. At the same time, the two ministries also communicated the feasibility of holding shares in the trust plan before the IPO was released. Unfortunately, there was no final conclusion.
So the current situation is that the trust plan is the main body of equity investment, and there are obstacles in IPO.
Let's talk about the trust plan nested limited partnership.
In 2009, CCB International made a similar attempt, that is, set up CCB Health Care Equity Investment Fund (but not a nested limited partnership, but a nested company system, but the principle is the same). Later, none of the fund's projects exited through IPO.
At the end of September 20 10, four so-called "trust plan nested limited partnership" equity investment partnerships were established in Tianjin. Three of them were established by Shanghai Huayue invested by CITIC Trust. They are Bodo Xinyuan Equity Investment Partnership, Huachen Ye Jia Equity Investment Partnership and Yudao Yuancheng Equity Investment Partnership. The other is a Tianjin Dashidong Steady Equity Investment Fund Partnership established by Xi 'an International Trust and Jiangxi Poyang Lake Industrial Investment Management Co., Ltd.