3.28 Private equity investments of the rich new ex

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Warburg Pincus, Carlyle Group, IDG, Tiger Fund, the international investment funds have been familiar with in the past few years, they frequently appear in the Chinese market, because the investment Mengniu, XCMG, Harbin Pharmaceutical Group, Pacific Insurance,3.28, Focus media, non-listed companies such as Suntech equity and reputation in China.

Now, these international giants began to be the domestic rules of the game trying to copy some of the wealthy, the rich have a lot of assets, has done a variety of investment, but the most favorite non-listed equity investments.

unlisted equity investments is now known as PE (Private Equity) investments, also called

in foreign countries, private equity investment has matured, there are two types: venture capital and direct investment. The former Internet boom since 1999 after the Chinese Internet company to become one of the sources of funding, is also home to many new start-ups play an important role in financing; which is a follow-ended investment, PE investors to buy a small number of non-listed companies shares after the shot waiting for corporate equity value and profit.

Recently, thanks to global good low interest rate environment, the acquisition of funds popular with venture capital and direct investment is different is that this fund is intended to gain control of target companies. According to Bloomberg statistics, last year's acquisition of the global equity amounted to 255.3 billion U.S. dollars the total, compared to 2004 increased by 1 / 3. This year, the private equity firm's transactions amounted to 146 billion U.S. dollars,3.43 Rankerz SEO Pakistan, up 6 percent over last year.

interpretation of the wealth in this area are often added myth, professionals in this field, said, PE investments are annualized yield of 20% or more, while people believe that if get a good project, and its yield will much higher than 100%. In fact, look at examples around us, those who invest Mengniu, Suntech's people, which is not in the short term for huge profits! It is also attracting the average investor to join PE to one of the reasons the game.

PE investment is absolutely a bungee game, because the current threshold of A share IPO market is usually relatively high, PE investment exit channels for the majority of overseas listing of the road choice, therefore, the process of playing the game, If you are not professional, or risk awareness is not enough, you could lose all the capital.

but the temptation is too great wealth, in order to squeeze into the PE investment threshold, we just to the door to open larger, so that people who accumulate some capital investment from the PE share of the distributable Cup.

Thus, it becomes a circle: the more you have money, the more the game can not stand the super-PE temptation to return, as rich people like all kinds of extreme sports, once to use, it will be difficult respite .

PE investment in the five groups

The private equity (PE) investment is suitable for the rich.

but because Chinese enterprises are reluctant to transfer control over to wealthy individual investors to join. PE investment in China there is a new feature, one PE investors include angel funds, institutional investors and wealthy individual investors; Second, China's PE investors to the individual or trust model, low-cost access to the right company, and timely withdrawal of the added value; third PE investments tend to be mature, stable cash, less risk, the possibility of large listed companies.

wealth will have a fatal course of pleasure, provided that investors must understand the investment process of PE.

first PE investment into an investment bank who, because they had business relations, the operation involved in business investment, . Of course, this investment process is not allowed by law.

many people have done in the Investment Banking Division of the resignation of a few years will specialize in PE investment. They accumulated a wealth of contacts and resources to find projects or individual, or follow the investment bank to do investments, while others joined the private equity investment funds to become partners. End of 2005, Morgan Stanley CEO Jonathan Zhu of China to join the U.S. private equity investment group known Bain Capital (Bain Capital), 2006 年初 Morgan Stanley Liu Haifeng, Managing Director Lu Mingjia buy into the top-ranked fund KKR, are in this category.

closely followed by exit from the shareholders of listed companies and entrepreneurial experience. The former listed companies have accumulated enormous wealth, but also know that the huge profits of PE investments, there is also a tendency to PE investment.

the latter on the Internet, today's high-tech rise, more and more industrial investment were accumulated enough capital and industry experience, they know the process of PE investment in the business value and return on equity in order to gain business value the greatest opportunity. For example, Wang Li Ka-shing's TOM Group CEO from the position left after joining the Texas Pacific Group (TPG TPG Group) partner, TPG is managing nearly 300 billion dollars of private equity investment company. Not long ago, soon after the establishment in China of the partner of Qiming Venture Partners have done the majority of industries, among them the former director of Intel Capital China Duane Kuang, former senior manager of Cisco's business development Zhou Yinghua.

In addition to experience, experience, government relations, capital investment is one for PE. By Carlyle, for example, the company's return on investment among the two presidents, one is the current U.S. President George W. Bush, the other is Bush's father, former President George HW Bush. During the U.S. President Bush as secretary of state James. Baker was a Carlyle Senior Advisor and one of its major shareholders, former U.S. Secretary of Defense Frank. Kalu Qi served as its chairman, former White House budget director Dick. Darman also served as its adviser. In addition, a consultant in the Carlyle Group, former British Prime Minister on the list John. John Major, former Philippine President Fidel Ramos, which led to the investment community Carlyle was considered to be Of course, in addition to luxury consultant team, the Carlyle has also attracted other investors, wealthy individuals and family to join.

third person is transferred from the stock over the secondary market investors. The past year, in Beijing, Shanghai, Shenzhen was born not known a lot of venture capital companies, which are very small, many belong to several wealthy partnership registered company, they are no longer the same wealthy individuals to raise funds, in addition to continue to invest in two grade market, now they are a lot of energy in the PE investment.

fourth category of people that includes law firms, accounting firms, financial advisory intermediary, including the company's managers, through the intermediary of the PE investment needs to understand the potential acquisition targets, many lawyers, financial advisers the business relationship a better understanding of the enterprise will follow the investment part of the capital. Among them, the financial consultant will be a successful investment in the PE share of the financing before the total amount of 1-5%. Fifth from those that rely on other people with enormous wealth, they are now also involved in PE investment in the past.

several people above have a common feature, have enough money in the first and second information smoothly, and the third have sufficient risk tolerance.

was interpreting the wealth of myth

to Carlyle, for example, the average annual rate of return to investors of up to 34%, so it is called Over the past few years in China, Carlyle Ctrip 800 million investment into a $ 100,000,000, 15 times the return; Softbank invested $ 40,000,000 Shanda development, access to more than ten-fold return; Morgan Stanley, CDH , three Actis invested overseas investment institutions to Mengniu about 5 billion yuan in just three years of about 2.6 billion Hong Kong dollars by the return on investment, return on investment rate of return of about 500%. the beginning of 2006,3.43, Suntech has become the classic myth of wealth . First half of 2005, Goldman Sachs shares to the way PE Suntech Power Co., cost $ 25,000,000, include other hidden expenditures, but $ 40,000,000. Second half of 2005, Suntech successfully listed in New York, the offer price set at $ 15. December 14, Suntech traded on the New York Stock Exchange, opening jump to $ 20.35 position at this time, Goldman Sachs invested $ 25,000,000 into a $ 400,000,000, six months out of 10 times earnings. In addition to Goldman Sachs, Shanghai, Qiu country roots participation of individual investors to buy non-listed Suntech shares, according to January 2006 had the highest stock price of Suntech 45.95 yuan terms, its investment income to more than 20 times.

2000% rate of return! This is also one after another to attract investors to join the PE investment in one of the reasons. Over time, domestic investors can invest a lot of people see around Coship (002 052), Da An Gene (002,030) and other small plates options several times after a case of double wealth.

said. While others expect higher, they think that to get good projects, private equity investment yield will be much higher than 100%. Statistics also show that: In 2005, 48 received injection of private equity in China business

domestic investment opportunities more obvious in 2006, the year is the rare golden capital markets, the stock market began to return to the bull market, IPO floodgates again, many began to have considerable personal wealth into PE market, from .

of Chen Xiao Bing, vice president of venture capital memories, after the year 2000, by the wave of the Internet, the Nasdaq, the domestic venture capital for the first time reached a climax. In 2000-2001, only the establishment of venture capital institutions in Shenzhen more than 100 more than when there were scenes of looting the excitement of the project.

2003, the Fortune 10 million venture capital investment holds 10% shares of Coship, to spread the risk, up to an additional three morning joint venture agency invested a total of 20,000,000 shares of 25%. In fact , Fortune, said Xiao Bing, vice president of venture capital, including equity investments of 20 million, through secured loans and other forms of four venture capital institutions Coship financing more than 80 million.

Although some investment required when VC is not very large, several million of investment may also be a lot of individual investors can afford the investment, however, Xiao-bing that: Quit waiting for value-added, support enterprises to further enlarge and strengthen the investment is the most critical, VC funding in addition to, more to provide a professional capabilities, including project investigation, judged the ability to choose, as well as the invested enterprise to provide further the ability to value-added services.

to May 31, 2006, at the morning of the investment for large gains, IPO floodgates Coship the second one listed, Fortune Venture Capital in the successful listing of Coship, the book income 2.2 million won more than 22 times the value-added benefits.
Coship

addition, the completion of Fortune Venture Investment Fund, an investment of 90 million yuan of the project, communication is key to the bridge exit value, in addition to Shenzhen and the Thai Electronics Co., Ltd. (hereinafter referred to and the Thai), Changsha talkweb information technology companies is preparing for listing.

myth that wealth makes all the wealth of individual investors have a certain beginning to pay attention in this area. So PE investment more prosperous, the recent listing of bank shares, non-transfer of corporate shares of listed banks began to multiply, for example, the Industrial Bank in 2005 non-legal person shares of listed only 2-3 yuan 5-6 yuan this year has come to.

path decryption

the equity investment and stock market rules and a completely different market, so in addition to funds, businesses need more participants for the project investigation, judged the ability to choose, as well as the enterprises to provide value-added investment service capabilities and experience in capital market with IPO, square can smoothly enter and exit. For a long time, venture capital funds have been institutional investors with large But now, more money and no business opportunities can be through subscription rich private equity funds, industry funds, trust funds approach to indirect investment, venture capital firms on the play to connect the individual and the role of venture capital bridges.

normal circumstances, this company launched specifically for the rich, fund or trust has a low entry threshold, the threshold set abroad about 100 million, some domestic fund rules, a single investor shall not be less than 100 million yuan, the venture capital institutional investor shall not exceed 200 people, including the establishment of a limited liability company form of the number of venture investment enterprises shall not exceed 50 (the Fifty people following, except as otherwise provided by law.)

general, the minimum limit various types of funds will be different, but some standards for the new fund would be relatively lower. And investors to subscribe for trust or fund is mainly based on venture capital management team's past performance, if not past performance, specialized PE funds raised will be difficult to fund.