It is not that banks and trust companies have to pay more in the process of raising and managing private equity funds, nor that it is difficult for private equity funds in China to rent offices at low rents (it looks like a fraud company), mainly because qualified clients in China are as hard to find as qualified stock fund managers.
Most people lack the most basic risk awareness.
In the last bull market in 2006, I was in a law firm in Shanghai. Because it is good for me to invest in stocks at work, a colleague said that he could introduce a friend to me and let me invest in stocks on my behalf. Of course, I'm also interested.
At the end of 2006, I only had about 400,000 personal net assets. In the face of bull market, there is no common margin trading business, and my desire for funds is still relatively strong.
Colleague's friend said that 654.38+00,000 is no problem, and the sharing can also be discussed. However, he suggested that if there is a loss, I will bear the guaranteed income equivalent to the interest on bank deposits and bear the loss completely.
Although I was still optimistic about the market outlook at that time, I resolutely rejected such a customer who asked for drought and flood protection and only wanted to collect excess income without taking risks.
In the last year or two, the risks of shadow banking in China have been exposed. It has been publicly reported by the media that billions of private loans in many cities are prone to collapse or get into trouble, and some trust or bank wealth management products cannot pay the expected income normally.
In the process of dealing with these matters, many investors insist that banks pay "interest" and principal, and treat these investment tools as bank deposits.
In fact, in China, a large number of residents lack the most basic risk awareness, but demand a rate of return that is significantly higher than the risk-free interest rate. The change of investment concept is not much easier than the change of religious belief.
In the eyes of many China stock fund investors, a qualified stock fund manager should have all the following abilities:
1, positive returns can be realized every year, whether in 2008 or 20 1 1, conditional realization, unconditional realization, creating conditions. It is best to have positive returns every month.
2. Under the above conditions, the maximum retreat should be at the level of 4% or lower. The best maximum retreat is below 1%, which can be replenished within one week.
3. You can get an excess return that is significantly higher than that of the Shanghai Composite Index. If a year is the growth enterprise market or small and medium-sized board market, then the index that requires transcendence becomes the growth enterprise market or small and medium-sized board index.
4. It is required to provide cannon fodder for investment losses to ensure that customers' investment will not suffer losses.
In a place with a developed financial market like the United States, I'm afraid those who insist on the above four items can't find a manager at all, and no one pees at all.
Making money is not to go to jail.
However, in China and China's characteristic stock market, since this is the requirement, some people who do private equity funds are forced to make some commitments. Anyway, these customers don't understand or have the patience to read dozens of pages of carefully designed contracts.
Objectively speaking, some investors in China are gullible, although some of them are poor.
After the crash in 2008, I saw such a public report in the media that a private equity fund manager only lost about 10 percentage points that year. It is said that such a performance should be satisfactory as long as the customer knows whether it is good or bad. But this fund manager killed his wife and children and committed suicide.
I really don't understand. I think it may be because I promised some guaranteed terms.
As long as China's capital market is not closed, as long as I don't die in an accident, I will be a billionaire sooner or later. What's more, I am ambivalent about using other people's money to accelerate my wealth and widen the gap between the rich and the poor in China.
It is even more unacceptable to make money for a scum (when I was a lawyer in Shanghai, a colleague had a client, a Shanghai man, who was particularly good at cheating women on money and sex. In money worship China, model workers are hard to find, and there are plenty of scum.
Therefore, although I thought about doing private placement, I basically have no illusions and would rather snowball my own funds in a small town in a county-level city.
What do you need too much money for?
Just because I don't have this fantasy, about a month ago, a colleague who worked in a financial institution and a friend of his introduced a high-net-worth client and wanted to entrust him to be the manager of stock investment.
He doesn't think he can do it alone. When he asked me to attend, although I verbally promised to go to Beijing for a meeting, my mind was purely to live up to my friend's kindness.
Even if I reach the cooperation intention, I will not necessarily go to Beijing to live again.
I went to Beijing by train on a Friday morning. When I had dinner with my friends in the evening, my friends told me not to hold out too much hope, and I also said that I had no hope at all.
It is too low to entrust hundreds of millions of funds to two strangers.
On the bus to the hotel, I said that qualified customers and managers in China are hard to find. They often demand absolute returns when the market goes down and excess returns when the market goes up.
Because the client's plane was late, I also returned the train ticket that night. The client arrived at the hotel around 9: 30 in the evening and talked for about two and a half hours. However, in less than 20 minutes, I found that reaching an intention was as slim as PetroChina's return to 48 in two months.
This client is very young, maybe not yet 30 years old. He has repeatedly stressed that money is not a problem, and it must be more than 100 million yuan.
He is also quite frank, and his personality feels good. His current office and registered company are in Beijing. If there is no obvious difference in investment philosophy, he is actually the dream investor of many private fund managers.
We should know that the current law in China stipulates that the purchase threshold of private equity funds issued by trust is 6.5438+0 million yuan, and they can only be sold to no more than 6.5438+0 million customers (investors above 3 million yuan are not restricted). Therefore, even if it is sold in banks such as ICBC and China Merchants Bank, roadshows all over the country and a lot of materials are prepared, it may not be able to raise 654.38 billion yuan.
The customer's investment philosophy and investment plan mainly focus on the following aspects:
1, enlarge the lever to four or five times, and the cost is about 9%.
I used leverage myself last year, but the amount of the margin account was basically 1 000 yuan, and I used positive repurchase. The annual financing cost is less than 3.5%, and the leverage ratio is less than 0.5 times. Even so, I seldom use the available lever.
I told my wife that at my age, I can't put all my eggs in one basket. After losing everything, I will go to work in Beijing with a monthly salary of more than 10 thousand. Starting over seems exciting and heroic, but I wouldn't even consider it.
2. Require absolute avoidance of losses.
As I expected, he made it clear that he could not lose money. Of course, he said it was a big principle, but he didn't fully demand it.
The client himself is also a veteran of stock investment. In Hong Kong, he and his friends achieved the scale of 500 million net assets from about100000 or tens of millions of net assets, but for various reasons, they returned to100000.
This shows that he suffered big losses in the past. If you want to find a manager who can avoid big losses, it is also a wise choice, but it is difficult to take into account the above requirements or investment plans by adding several times leverage.
3. If you have the chance of recognition, you should hold a heavy position or even a single stock in Man Cang.
This customer used to have his own funds to leverage a Man Cang stock in the Hong Kong market, which made him successful in succession and made him rich quickly, so he was convinced of this practice.
He asked us how much we could open a position if a stock had definite news or good news. My friend said no more than 20%, so I simply stopped answering. He proposed to take more than 60% of the positions, and it is likely to be fully released after adding leverage.
4. Excessive pursuit of rate of return.
Customers complain that the market is not good and earn three or four times a year. If the Shanghai Composite Index rises by 20% a year, I have an 80% chance to realize this income. But this rate of return is beyond the reach of Soros, Buffett and Lynch.
5. Make it clear that it may be done with the help of internal news.
I used to be a lawyer, so I am very wary of legal risks. In the future, the CSRC will investigate and deal with insider trading more and more strictly. Of course, I'm unlikely to risk going to jail to make some money.
In fact, if you buy 20 long-term bullish stocks and go to jail for 10 years, the yield may be higher than that in the middle year. But people don't make money to go to jail.
6. Clearly put forward that small-cap stocks are the focus of investment.
Because of the above ideas or plans, I am too lazy to start talking about my methods or strategies 20 minutes before the meeting.
In the stock market, the Eight Immortals crossed the sea and showed their magical powers. It is hard to say whose method is right and whose method is wrong. The key is to stick to your own effective methods, not one spirit.
I want to learn from the strengths of various methods and avoid their weaknesses. I want the Monkey King's iron bar, seventy-two changes, somersaults, and I don't want a golden hoop on my head.
Don't dream of private equity funds at all.
Why is it that Buffett, his partner Munger and himself are all around the age of 80, Buffett is suffering from cancer, but he is happily managing the stock fund, while Peter Lynch retired before the age of 50? I think the pressure on investors is different.
Buffett's initial investment partners are all his relatives and friends, and they have full trust. Buffett agrees that the client should not interfere in his investment.
Later, Buffett took charge of Berkshire Hathaway, and the funds came from insurance companies rather than direct customers. Buffett doesn't need to face some stupid questions and nervous questions.
But Lynch, as the manager of Public Offering of Fund, had to face these things. Lynch was in his forties with white hair and retired early. I really respect him very much.
After his success, he retired, leaving a record that was almost impossible for future generations to break. He is not greedy for fame and fortune, which is really high.
Private placement in China is also facing the same problems as Lynch. Any customer is his own food and clothing parents, and can't afford to offend.
Many private fund managers, generally young, are prone to psychological imbalance and are difficult to concentrate on investment under the unrealistic requirements of customers.
What's more, most private fund managers simply don't know. Therefore, most private equity funds have poor performance, so they brag about raising funds, so they constantly defend themselves.
Although the trip to Beijing was not successful, it was quite enjoyable.
Maybe after I'm 50 years old, I'll break through the moral and psychological barriers and become a private equity fund, and the financial market here in China is relatively developed. I'll set up a private equity fund for my daughter's development in the financial field, but at present I have no dream of being a private equity fund at all.
China is not suitable for realizing the dream of private equity funds easily.