The private equity venture capital industry welcomes favorable policies again.Recently, the China Securities Regulatory Commission launched a pilot program for private equity venture capital funds to distribute shares in kind to investors.
In this regard, a number of industry insiders said that the pilot mechanism will greatly benefit the development of the private equity venture capital industry. On the one hand, it is to shorten the use cycle of working capital and improve the efficiency of capital use; on the other hand, it can provide investors with more exit opportunities. choose.
The pilot program of private equity venture capital funds to distribute stocks in kind to investors refers to the agreement between private equity fund managers and investors to distribute the pre-IPO shares of listed companies held by private equity venture capital funds to investors through non-transactional transfer. unitholders) for distribution.In addition, private equity venture capital funds can use the shareholding reduction quota for centralized bidding transactions or block transaction holding reduction quotas for stock allocation. After occupying the holding reduction quota, the fund's total holding reduction quota is deducted accordingly.
An executive of a private equity fund in Beijing told the "Securities Daily" reporter that the profit of private equity venture capital funds mainly comes from management fees and the floating market value of the co-invested projects after they are listed.For a long time, some private equity venture capital funds have locked up the equity cycle held by other investors in order to charge high management fees, and even tried to extend the lock-up cycle.However, the implementation of the pilot mechanism for physical distribution of stocks may break this dilemma."It can give investors more options, especially when exiting, without more intervention and restrictions."
However, it should be noted that although the regulatory authorities have given a lot of space for the pilot of physical distribution of stocks, allowing investors to have as many choices as possible, it is not applicable to any investor.
The China Securities Regulatory Commission stated that private equity venture capital funds that are the controlling shareholder, actual controller, or the largest shareholder (including persons acting in concert) of a listed company and whose shares of the listed company have not been released from restrictions on sales are not allowed to participate in the pilot program.At the same time, if the investor who accepts the distribution is the actual controller of the listed company and other relevant circumstances, it is not allowed to distribute shares to it.
A person related to an equity private equity fund in Beijing told the "Securities Daily" reporter that the regulatory authorities have been supporting the development of private equity venture capital funds for a long time.For example, the Growth Enterprise Market was launched in 2009 to meet the financing needs of a group of relatively advanced and technologically advanced assembly manufacturing companies;"The launch of the pilot program of physical distribution of stocks will greatly enhance the activity of private equity funds and provide favorable conditions for the further growth and development of the industry."
It is understood that before 2006, domestic investment institutions were mostly U.S. dollar funds, until the promulgation of the revised Partnership Enterprise Law, which cleared the legal obstacles for the establishment of private equity, allowing the sponsors of industrial investment funds to choose independently Form of organization, including establishment and operation as companies, trusts and partnerships.A number of private equity sources said that the launch of the physical distribution mechanism has given investment institutions a "strengthening shot" and ushered in an efficient era of "speeding up advance and retreat".
Another private equity person said that for investment institutions, the physical distribution of stocks to investors will stimulate the investment motivation of private funds; at the same time, it will also promote the prosperity of local RMB investment institutions, and the activity of various investment institutions will further increase.
The latest data from the China Foundation Association shows that in the first five months of this year, there were 31,600 surviving private equity investment funds with a scale of 10.84 trillion yuan, plus 2.56 trillion yuan of 16,400 surviving venture capital funds. The scale is 13.4 trillion yuan.
A number of private equity fund sources said that the launch of the pilot work of private equity venture capital funds to distribute stocks in kind to investors will once again promote the optimization of the development environment of private equity venture capital funds, thereby further serving the development of the real economy.It can be expected that with the overall improvement of the relevant advance and retreat mechanism, the incremental market capital is expected to increase, and the efficiency of capital use is expected to accelerate.
Our reporter Wang Ning
