Under the impact of the epidemic, the difficulty of fundraising is temporarily difficult to resolve. The scale of fundraising in February continued to decline, and the number of newly raised funds fell sharply.
Editor’s note: This article comes from WeChat public account ” clear Research “(ID: pedata2017) , author: Zhang Hui.
According to the private placement statistics of Zero2IPO Research Center, in February 2020, a total of 38 funds were raised in the domestic equity investment fundraising market, the number of which fell by 64.8% year-on-year and 72.3% month-on-month. A total of 36.758 billion yuan was raised, a year-on-year decrease of 18.9% and a month-on-month decrease of 22.6%. A total of 21 new funds were established, with a decrease of 48.8%.
Revealed 6 newly established funds with target scales and planned to raise 8.550 billion yuan, a drop of 22.1% month-on-month. Under the impact of the epidemic, the difficulty of fundraising was temporarily difficult to resolve. The scale of fundraising in February continued to decline, and the number of newly raised funds fell sharply. Nowadays, the management of government investment funds has been strengthened, the government’s guidance on fund investment has become stricter, and the fundraising market is under pressure.
The number of new funds raised in February both fell, and the proportion of large-scale funds exceeded 80%
According to the statistics of Private Equity Connected by Zero2IPO Research Center, in February 2020, a total of 38 funds were raised in the domestic equity investment fundraising market. The 38 funds that disclosed the amount of funds raised raised 367.5.800 million yuan, with an average fundraising scale of 967 million yuan, an increase of 146.5% from the previous month. A total of 8 large funds raised this month and above amounted to 1 billion yuan, raising approximately 31.071 billion yuan, accounting for 84.5%.
From the perspective of the currency of the fund, of the funds newly raised in February, RMB funds raised 36, and the 36 funds that disclosed the amount of funds raised totaled RMB 30.712 billion, with an average fundraising scale of RMB 853 million. 2 funds were raised, and the 2 funds that disclosed the amount of funds raised totaled 6.046 billion yuan, with an average fundraising scale of 3.023 billion yuan.
From the perspective of fund types, the number of newly raised growth funds this month was 21, accounting for 55.3%, and the amount of funds raised was 20.670 billion yuan. There are 14 startup funds, accounting for 36.8%. In addition, 2 infrastructure funds and 1 real estate fund raised funds this month. Among the newly raised funds worth noting is Shenzhen Investment Control Jianxin Chuangzhi Technology Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as “Shenzhen Investment Control Jianxin Chuangzhi Technology Fund”), which raised RMB 100 billion this month.
Shenzhen Investment Control Jianxin Chuangzhi Technology Fund was established in 2020 with a target size of RMB 100 billion. It is managed by CCB (Beijing) Investment Fund Management Co., Ltd., Shenzhen Investment Control Bay Area Equity Investment Fund Partnership (Limited Partnership) ), Shenzhen Jinxinnuo High-tech Co., Ltd. and Shenzhen Investment Control Capital Co., Ltd. jointly initiated the establishment, and Shenzhen Investment Control Capital Co., Ltd. is responsible for management.
Fund investment direction: The company intends to invest in companies in China (including Pre-IPO investment, participation in mergers and acquisitions, etc.), will focus on the new generation of information technology industry with 5G communications as its core representative, and focus on artificial intelligence, health , Financial technology, advanced manufacturing, the Internet, new energy, new materials and other innovative technology-oriented industries or fields.
In terms of fundraising, the largest new fund raised is Beijing Daxing Linkong Economic Zone Development Fund (Limited Partnership) (hereinafter referred to as “Beijing UniversityXinglinkong Economic Zone Fund “), this month raised 10.510 billion yuan. The Beijing Daxing Linkong Economic Zone Fund was established in 2020 with a target size of 50 billion yuan and the first phase of 10 billion yuan. Beijing Xinhangcheng Holdings Limited The company initiated the establishment and was managed by Beijing Xinhangcheng Fund Management Co., Ltd.
The Beijing Daxing Linkong Economic Zone Fund will be based on the construction of a “new power source for national development”. Key investment directions include infrastructure protection, public utility projects, regional services, urban operation projects, and airspace-related industrial projects. As a platform for the development and construction of the Beijing Daxing International Airport Airport Economic Zone-Beijing Xinhangcheng Holdings Co., Ltd. initiated the establishment of the Beijing Daxing International Airport Economic Zone Fund and actively introduced social capital to participate in the development and construction of the Beijing Daxing International Airport International Airport Economic Zone.
The second largest is CMC Capital Partners III, L.P. (hereinafter referred to as “CMC Capital III USD Fund”), which has raised a total of USD 953 million. CMC Capital Phase III USD Fund was established in 2018, initiated by CMC Capital, and managed by CMC Capital. The fundraising has been supported by many high-quality institutional investors such as the world’s top public pension funds, sovereign funds, insurance companies, financial institutions, endowments, parent funds, and family offices. The geographical distribution is also more global. Investors from North America, Europe, Middle East and Asia Pacific.
CMC Capital said it will continue its previous investment strategy and focus on the investment of outstanding growth companies in the three major areas of entertainment, technology and consumption.
The third place is Shenzhen Guoke Ruihua Phase III Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as “Guoke Ruihua Phase III Fund”), which raised RMB 4.50 billion this month.
Guoke Ruihua Phase III Fund was established in 2020, with a target size of RMB 600 billion and a duration of 8 years. Shenzhen Guiding Fund Investment Co., Ltd., Beijing Guoke Ruifu Equity Investment Fund (Limited Partnership), PetroChina Group Capital Co., Ltd., China State-owned Enterprise Structure Adjustment Fund Co., Ltd., Shenzhen Baoan District Industrial Investment Guidance Fund Co., Ltd., Tianjin Free Trade Zone Investment Co., Ltd., Guotai Junan Zhengyu Investment Co., Ltd., Guoke Ruihua (Shenzhen) Technology Co., Ltd. Gongqingcheng Zhongshi Technology Industry Investment Co., Ltd. and Beijing Zhongguancun Venture Capital Development Co., Ltd. jointly initiated the establishment, which is managed by China Science and Technology Industry Investment Management Co., Ltd. The Guoke Ruihua Phase III Fund focuses on artificial intelligence hard technology.
2The number of newly established funds has continued to decrease month-on-month, and no foreign currency funds have been established.
According to the statistics of Private Equity Connected by Zero2IPO Research Center: In February 2020, 21 new funds were established, the number of which decreased by 48.8% month-on-month, 6 funds of the target size were disclosed, and the planned fundraising was 8.550 billion yuan, which was higher than Month-on-month decrease was 22.1%.
From the perspective of the currency of the funds, 21 new RMB funds were newly established in February, and the disclosed 6 funds plan to raise RMB 8.550 billion with an average target size of RMB 1.425 billion; no foreign currency funds were established this month.
In terms of fund types, there are 16 new growth funds, accounting for 76.2% of the total number of newly established funds. The second largest number is the start-up fund, which newly established 4 this month, accounting for 19.0%. An early-stage fund was also set up this month. Of note in the newly established fund is the Tongcheng Capital Angel Fund. Tongcheng Capital Angel Fund was established in 2020 with a target size of 50 million yuan. It was initiated and managed by Tongcheng Capital. Tongcheng Capital Angel Fund will focus on supporting tourism, large consumption, middle-aged and elderly industries, and education. And angel round startups.
Among the funds newly established in February to disclose the target size, the larger target size is the Chengdu New Economy Venture Capital Fund. The Chengdu New Economy Venture Capital Fund was established in 2020 with a target size of RMB 300 million and an initial phase of RMB 200 million. It was initiated by Chengdu Jiaozi Financial Holding Group Co., Ltd. and is invested by Chengdu Detong Western Investment Management Co., Ltd., a subsidiary of Detong Capital The company is responsible for the management. The investment scope of the Chengdu New Economy Venture Capital Fund includes: priority investment in outstanding Chengdu new economy enterprises that are facing difficulties due to the impact of the epidemic, approved unicorns, quasi-unicorns, gazelle enterprises, and epidemic prevention and control. And technology-related businesses and projects.
At the same time, it will also focus on investing in new economic or strategic emerging industries such as advanced equipment manufacturing (military-civilian integration), artificial intelligence, and new-generation information technology that the state supports. Chengdu New Economy Venture Capital Fund ’s investment methods include equity investment, private placement, convertible bond investment, corporate mergers and acquisitions, and idle capital wealth management investments, which are in compliance with China’s laws and regulations, and enhance the financing capabilities of new economic enterprises. .
Strengthening the management of government investment funds, stricter government-guided fund contributions
On February 21, 2020, the Ministry of Finance issued the “Notice on Strengthening the Management of Government Investment Funds and Improving the Benefits of Financial Contributions”, which clearly stated that it would strengthen budgetary constraints on the establishment of funds or capital injection. Establishment of financial contributionsFunds or capital injections must be strictly reviewed and included in the annual budget management and reported to the people’s congress or its standing committee for approval; if the amount is large, it should be arranged annually according to the fund investment progress.
To set up a fund, we must fully consider the financial affordability and reasonably determine the size and investment scope of the fund. In the annual budget, if the necessary guarantees such as “three guarantees” and debt interest payments are not fully guaranteed, no new fund may be arranged. The deposited funds recovered during budget implementation can be used for capital injection of funds in the areas of urgent need for economic and social development after performing the necessary procedures in accordance with the provisions for promoting the overall use of fiscal funds and revitalizing existing funds.
The notice points out that government investment funds have played an important role in innovating the use of fiscal funds, guiding the development of emerging industries, and leveraging social capital investment. However, some funds also have problems such as duplication of policy objectives, idle and fragmented funds, etc. Strengthen government budget constraints on fiscal funding. The government-guided fund has become an increasingly important investor in the equity investment market. This strengthening of the management of government-invested funds means that the government-guided fund is becoming stricter and the fund-raising market is under pressure.