Excuse me, who can give me a box of private M&A funds?

1, Bohai Industrial Investment Fund went public, and the first domestic private equity fund raised in RMB was established.

On June 30th, 2006, 65438+February 30th, after a year of preparation, Bohai Industrial Investment Fund, the first industrial investment fund registered in Chinese mainland in China, was formally established in Tianjin. The fund is established in the form of contract and private placement, with a total scale of 20 billion yuan and a duration of 15 years. The first phase has raised 6.08 billion yuan. Bohai Industrial Investment Fund Management Co., Ltd. was also established on the same day to be responsible for the investment and management of the fund.

At present, industrial investment funds directly registered in Chinese mainland in the name of funds are established on the basis of special approval. There are two Sino-foreign joint venture foreign currency industrial funds, namely Sino-Swiss Cooperation Fund and China-Belgium Direct Equity Investment Fund. Bohai Industrial Investment Fund is the first contractual industrial fund registered in China, and it is also the first industrial investment fund in China to raise funds in RMB.

The establishment of Bohai Industrial Fund has broken the current situation that the private equity investment market in China is dominated by foreign capital, and will certainly promote the rapid development of local private equity investment in China.

2. The promulgation of a series of relevant laws and policies has had a great impact on the private equity market in China.

In 2006, the China Municipal Government promulgated and implemented a series of laws and policies, which had a great impact on the private equity market in China.

The Measures for the Administration of Foreign Investors' Strategic Investment in Listed Companies promulgated on September 8, 2006 stipulates that foreign investors will be allowed to make limited strategic investments in A shares and sell them in the secondary market after the end of the restricted sales period.

A large number of outstanding A-share listed companies in China are very attractive to foreign private equity funds, clearing the way for overseas private equity funds to invest in A-share listed companies and expanding the scope of projects that funds can invest in. After the release of the new regulations, a large number of overseas funds began to be active in listed companies everywhere. According to the statistics of Zero2IPO Research Center, by the end of 65,438+February, * * 19 Chinese mainland enterprises listed in the Mainland and Hong Kong had obtained private equity fund investment (PIPE), with financing of 2.705 billion US dollars, accounting for 20.8% of the annual private equity investment.

In addition, the Regulations on Merger and Acquisition of Domestic Enterprises by Foreign Investors mainly regulates the merger and acquisition of domestic enterprises by foreign investors, strengthens the supervision and review of leading enterprises or key industries involved in foreign mergers and acquisitions, and strictly restricts the mode of overseas listing of domestic enterprises in the form of red chips, which will cause certain obstacles to overseas private equity funds' M&A investment in China and their future overseas listing and withdrawal activities.

The revision of the Partnership Enterprise Law added the limited partnership system. Although this does not directly point out the demand of private equity and ship investment industry, it still indirectly provides legal guarantee for the establishment and operation of private equity funds in the form of limited partnership in China. China's local private equity investment can adopt the internationally accepted limited partnership system of private equity funds, which avoids double taxation under the corporate system, not only greatly improves the operational efficiency of private equity investment, but also broadens the fundraising channels of private equity investment funds, which will greatly promote the development of local private equity investment in China.

3. A number of overseas private equity funds have directly settled in Chinese mainland, and the "China Strategy" has attracted more and more attention.

As the field of private equity investment in China is an emerging market, foreign capital has been playing a leading role in this industry. In the past, most overseas private equity funds only set up headquarters or offices around Hongkong or China as the bridgehead for their investment in Chinese mainland. However, in recent years, especially in 2006, many overseas private equity funds directly set up permanent offices in Chinese mainland. According to the statistics of Zero2IPO Research Center, by the end of 2006, 29 private equity funds had set up offices in Beijing. Twenty-three private equity funds have set up offices in Shanghai and two in Shenzhen.

China is the fastest growing economy in the world. Coupled with its huge and stable market consumption potential and constantly improving investment environment, private equity funds pay more and more attention to the "China Strategy" and set up a resident office in Chinese mainland to facilitate investment in China enterprises.

4. Private equity funds in Asia (including Chinese mainland) are active in raising funds, and the proportion of funds that can be invested in China has increased.

In 2006, overseas private equity institutions accelerated their strategic preparations for investing in China, and successfully raised a number of overseas private equity funds targeting Asia (including Chinese mainland), among which the proportion of funds investing in China also increased significantly. For example, Carlyle established the second Carlyle Asia Fund II in Asia (excluding Japan), raising funds of $65.438+80 million; MBK Partnership successfully raised $654.38+56 million for its North Asia acquisition fund, and China Bohai Industrial Investment Fund raised RMB 6.08 billion in the first phase.

According to the statistics of Zero2IPO Research Center, by the end of 65438+February 2006, 40 Asian private equity funds that can be invested in Chinese mainland have been successfully raised, with the raised funds reaching1465438+96 million US dollars, especially in the second half of the year, with the raised funds reaching 9.565 billion US dollars, an increase of 106.5% over the first half of the year. This fully demonstrates the confidence of Chinese and foreign private equity investment institutions in Asian and China markets, and the abundant funds have laid a solid capital foundation for the development of private equity market in China.

5. Industrial investment funds are piloted first, and local institutions are scrambling to get involved in the private equity fund industry.

In the 11th Five-Year Plan issued by China in 2006, it was proposed to speed up the pilot of industrial funds. Tianjin Bohai Industrial Fund, the first Chinese-funded industrial fund pilot this year, was approved by the state, which aroused widespread concern from all walks of life. For a time, the upsurge of applying for industrial fund pilot has arisen all over the country. It is estimated that there are more than ten industrial investment funds in China.

On the other hand, a number of private equity funds initiated by local institutions in China have also been successfully raised this year. According to the statistics of Zero2IPO Research Center, in 2006, six private equity funds initiated by local institutions in China (including Bohai Industrial Fund) were successfully raised, and the raised amount reached15.1700 million US dollars, accounting for 10.7% of the total raised amount, and the average raised amount of each local fund. This is closely related to China's active pilot of industrial investment funds and the enthusiasm of local institutions to set up private equity funds. With the continuous improvement of China's private equity investment policy and legal environment, more and more private equity funds initiated by local institutions will appear in Chinese mainland in 2007.

6. China market has become the most active private equity investment market in Asia, with the total investment reaching a new high.

In 2006, large-scale investment cases of private equity funds in China frequently appeared in newspapers. Goldman Sachs Group invested $2.58 billion in the form of private equity to acquire a 5.75% stake in Industrial and Commercial Bank of China, making it the biggest private equity investment event in China this year. Other large-scale private equity investment cases, such as Royal Bank of Scotland investing in Liuyang Biomedical Park in Hunan, Goldman Sachs and CDH bidding for Shuanghui Development, PREEF, a subsidiary of Handing Asia Pacific United Deutsche Bank, investing in Hilton China Hotel, Standard Chartered Bank and Huaping investing in Greentown, have attracted wide attention.

According to the statistics of Zero2IPO Research Center, by the end of February 2006, Chinese and foreign private equity funds had invested in 129 mainland-related enterprises, and 75 private equity institutions participated in the investment, with a total investment of1297.3 billion US dollars.

7. Traditional industries lead investment, and the real estate industry is the most popular.

In 2006, traditional industries became the focus of private equity investment, ranking first in both the number of investment cases and the amount of investment. From June 5438 to February 65438, 2006, there were 73 private equity investment cases in traditional industries, accounting for 56.6% of the total investment cases in the whole year; The investment in this industry is 65130,000 USD, accounting for 50.2% of the total annual investment.

Among the investments made by private equity funds in traditional industries, China's real estate industry is the most favored by funds. In 2006, many domestic real estate enterprises, such as World Trade Real Estate, Shanghai Forte, Greentown China, Capital Property, Sunshine 100, all invested by private equity funds. According to the statistics of Zero2IPO Research Center, as of 65438+February 2006, there were 3 cases of private equity investment in real estate industry, accounting for 42.4% of the total investment cases in traditional industries, with an investment amount of 3.037 billion US dollars, accounting for 46.6% of the total investment in traditional industries.

8. Growth capital led the private equity market in China, and the number of acquisition cases gradually increased.

In the developed private equity market in Europe and America, M&A investment often occupies a very significant share; In China's private equity market, growth capital plays an important role. 1-65438+During February 2006, there were 66 growth capital investments with an investment amount of 2.857 billion US dollars, accounting for 5 1.2% of the total annual investment cases.

In May, 2004, Xinqiao Capital acquired Shenzhen Development Bank, which was the first successful acquisition of China enterprises by Chinese and foreign acquisition funds in people's memory. In 2006, more such cases emerged, such as CCMP's acquisition of 70.0% equity of Wuhan Katie Power Environmental Protection Company, PAG's acquisition of 67.5% equity of Good Boy Group, Huaping's acquisition of 98% equity of Shandong Zhong Xuan with Chinese partners, and CVC's acquisition of 85% equity of Jixiang Wood Industry. According to the statistics of Henderson Research Center, by the end of 65438+February, there were 12 cases in which private equity funds acquired control rights of unlisted enterprises, with an investment of 2.368 billion US dollars.

9. The exit of private equity continues to be active and the income is good.

According to the annual survey of Zero2IPO Research Center, * * * observed 33 cases of private equity fund withdrawal, such as Handing Asia Pacific withdrawing from Beijing Meida, Huaping withdrawing from AsiaInfo, and 3i withdrawing from Focus Media, which all brought good investment returns to private equity funds.

In 2006, 23 companies supported by private equity institutions achieved IPO, and the exit activities were very active.

In 2006, Bank of China was listed on the main boards of Hongkong and Shanghai stock exchanges. Before the listing of China Bank, four private equity investment institutions were introduced: RBS China, Asia Finance Pte Ltd, Swiss Bank and Asian Development Bank, with investments of US$ 3.048 billion, US$ 65.438+US$ 52.4 million, US$ 492 million and US$ 73.74 million respectively. After the listing of Bank of China, the four investment institutions obtained a return on investment of about 2.6 times according to the A-share issue price.

In September, 2006, Mindray Company, as the first biological/pharmaceutical company in China to be listed on NYSE, issued a total of 20 million American Depositary Receipts. Before listing, Mindray received a capital injection of about $27,804,700 from Goldman Sachs. After listing, according to the issue price, Goldman Sachs obtained a return on investment of about 4.4 times.

Good return on investment and gradual improvement of China's exit environment will enhance the investment confidence of private equity funds. It is predicted that in 2007, the number of IPO exit cases supported by private equity funds will exceed this year.

10, foreign mergers and acquisitions have attracted attention, and economic security has become the key word.

With the changes of domestic laws and policies in recent years, the merger and acquisition of foreign private equity funds has become a new trend. The business case of Carlyle's acquisition of Xugong is becoming the key word of China's acquisition this year. This case, together with several other foreign M&A incidents that have also attracted much attention, triggered a big discussion on the influence of foreign investment on national economic security in 2006. In August this year, the Ministry of Commerce, together with the State-owned Assets Supervision and Administration Commission, the State Administration of Taxation, the State Administration for Industry and Commerce, the China Securities Regulatory Commission and the State Administration of Foreign Exchange, officially issued the Provisions on Foreign Investors' Mergers and Acquisitions of Domestic Enterprises, which responded to the economic security problems caused by foreign mergers and acquisitions and explicitly requested that "in the future, if foreign investors gain actual control over domestic enterprises and involve key industries, relevant parties shall report to the Ministry of Commerce".

At present, the proportion of foreign mergers and acquisitions in foreign direct investment is not large, according to the statistics of the Ministry of Commerce, it does not exceed 7.0%. According to the Ministry of Commerce, the "Regulations on Merger and Acquisition of Domestic Enterprises by Foreign Capital" was formulated not to restrict foreign capital, but to continue to expand the channels for utilizing foreign capital. It is predicted that in 2007, due to the excess global capital liquidity and the good investment value of China enterprises, the cases of foreign private equity funds merging China enterprises will continue to increase.

Source: Zero2IPO Venture Capital Research Center.