"The golden age of PE is over, and now it is obviously more difficult to raise funds," said a partner of a US PE who raised RMB in Zhejiang.
He said that the LP (Limited Partner) who originally promised to subscribe for 70 million yuan suddenly changed its subscription and changed the subscription amount to 20 million. The remaining LPs have also reduced the subscription amount. As a result, the scale of the original planned fund of 1 billion has shrunk. Halfway through, the progress dragged on.
"In the collective fleeing incident of the boss in Wenzhou, some of our LP companies did encounter the problem of capital turnover and started selling houses and cars, which we did not want to see." The partner said helplessly, but With the explosive growth of RMB funds in the past two years, the powerful LPs have almost been robbed. The LPs that have already entered the market have not yet received the principal and return. The LPs that have not entered the market have the short-term mentality of making quick money. Fundraising has become very difficult.
"It will take five to ten years for China's LP market to mature," said Gan Jianping, managing director of Qiming Venture Capital. It has been only three years since the launch of the Growth Enterprise Market in 2009. Many RMB funds have been around for a short time, and many LPs still hold short-term Investment concept. "PE must not promise to return to LP. The verbal talk is just predicting return." Gan Jianping said that the important thing is to persuade LP to recognize and trust the PE team with performance. At this point, foreign LPs have always been relatively mature.
In the past two to three years, RMB fund raising has shown an explosive growth trend. Statistics show that in the first three quarters of 2011, the Chinese market raised 136 funds, raising a total of US $ 11.609 billion, more than in 2010. Among them, 63 new funds were raised in the third quarter, the number of which broke through the highest level in history.
Behind this, Zhejiang has always been one of the large PE fund-raising markets, and it is optimistic that Zhejiang capital accounts for one-fifth of PE fund-raising. However, Zhejiang's private credit is very developed, the overall liquidity is tight, and under the tightening of money, many funds have chosen to invest in usury, and are unwilling to invest in PE equity investment funds with relatively long investment cycles.
A number of PE partners said that they believe that the "big bang" situation of fundraising in the past has moved to an "inflection point". At the end of the year, corporate funds have tightened, and market qualified LPs and hot money have already been invested. The Wenzhou loan sharking incident should sound the alarm for speculative LPs, and it is also a negative signal for most PEs that do not have a brand or do not withdraw their performance.
"Under normal circumstances, PE will not close its doors because it can't be financed at once," said Ding Xuewen, managing director of Shanghai Panshi Capital. At present, there is very little supervision on PE, and no one went to verify whether PE actually invested in their alleged projects. Under the loopholes in laws and regulations, it is not excluded that a small number of speculative PEs will use LP money to lend usury, but even if the funds cannot be recovered, they will only have to wait for things to get bigger and appeal to the relevant departments and markets. Will know.
He analyzed that some PEs have to promise investment returns to strong LPs. Although the promises constitute illegal fundraising, the temptation of money still makes some people take risks. After promising investment returns, the hot money in the primary market was not so profitable, and some PEs turned to usury.
It is understood that the channels for raising funds through banks, third-party financial institutions and trusts are also affected.
A financial manager of a bank in Wenzhou raised funds for PE financing. He revealed that it is also more difficult to raise funds through channels such as banks or third-party financial institutions. Although it has always been difficult through bank roadshows (fund raising), at least a year or half a year ago, the bank ’s PE financing meeting was hot. There are still many individual LPs who do not have a seat to stand behind, and now he needs to call each one by himself. Someone is guaranteed to attend. "Bank PE products have a long lock-up period, the secondary market is sluggish, and some private capitals have difficulties in turnover. A series of uncertain factors have made investors more cautious when allocating private equity products." He said, however, past investment performance The PE team still has the opportunity to raise funds, but it is difficult to say that there is no brand or no exit PE.
The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting.
Clothes Rack is an essential item for retail stores and homes alike. It provides a convenient and organized way to display and store clothing items. Our wholesale and customizable Clothes Rack is designed to meet the needs of various businesses and individuals.
Made from high-quality materials, our Clothes Rack is sturdy and durable, ensuring long-lasting use. With its adjustable height feature, it can accommodate different clothing lengths, from shirts and dresses to coats and pants. The rack also includes wheels for easy mobility, allowing you to effortlessly move it around your store or home.
In addition to its functionality, our Clothes Rack can be customized to suit your specific requirements. Whether you need a specific color, size, or design, we can tailor the rack to meet your needs. We can also add your logo or branding, making it a perfect promotional tool for your business.
Whether you are a retailer looking to enhance your store displays or an individual in need of additional clothing storage, our wholesale and customizable Clothes Rack is the perfect solution. Contact us today to discuss your requirements and place your order.
clothes drying rack,clothes hanger rack,metal clothes rack,clothes drying rack foldable
Guangdong Metagarden Trading Co.,Ltd , https://www.gdmenapparel.com