Tens of billion-level guiding funds are constantly emerging in the equity investment market.
html At the end of July, Xi'an's first tens-billion-scale science and technology innovation fund of funds signed an investment cooperation contract. The fund is jointly funded by provinces and cities and operates in a market-oriented manner. It is expected to leverage the scale of the sub-fund to exceed 50 billion yuan. html On August 3, Yangzhou announced the establishment of three tens of billions of fund of funds, including the Yangzhou Science and Technology Innovation Fund of Funds with a total scale of 10 billion yuan. The latter focuses on cultivating independent intellectual property rights, transforming scientific and technological achievements, and localizing replacement of core technologies. field.In the central region of , the "Several Support Policies of Wuhan City on Accelerating the Development of the Equity Investment Industry (Draft for Comments)" drafted by the Wuhan Local Financial Bureau proposed the establishment of a 50 billion-scale government industry guidance investment fund to give full play to the financial With the guidance of the capital industry and multi-level amplification functions, we strive to achieve a fund scale of no less than 300 billion yuan in Wuhan by 2025.
Not only at the national level, provincial level, and prefecture-level city level, over the past year or so, many places have also established large-scale district and county-level funds. For example, Feixi County, Hefei City decided to establish a government investment fund of funds totaling 10 billion yuan. Shougang Fund assisted in Tongzhou District, Beijing to launch the establishment of a 5 billion yuan industry guidance fund for the Beijing City Sub-center.
In the consideration of local investment promotion practices, some high-growth enterprises cannot bring direct tax revenue in a short period of time. At this time, they can participate in the establishment of guidance funds and cover investment costs with investment income. So, how can district and county-level government guidance funds, which have higher capital investment demands, more effectively attract companies invested by venture capital institutions to settle down and play a major role in economic transformation?
Mechanically speaking, there is a two-way choice between government guidance funds and fund management agencies. -Visual China
guides funds to "sink" to districts and counties
At the "16th China Fund Partners Summit and 2022 Yangzhou Equity Investment Summit" held in Yangzhou in August this year, several guests at multiple round tables shared their views on the government Regarding the observation of guidance funds, one of the roundtable topics focused on the "Evolution of Government Guidance Funds."
According to the "2022 China Equity Investment Fund of Funds Industry Development Research Report" released on-site by Zero2IPO Research Center, the investment strategies of fund of funds have continued to evolve in recent years, sophisticated investment models are increasingly emerging, and some funds of funds have gradually moved down to the industrial level.
Zero2IPO Founder and Chairman Ni Zhengdong also shared his observations on the government’s guidance of fund of funds’ attempts to transform and the continuous innovation of investment and operation management models. He analyzed that in addition to market-oriented transformation, government guidance funds have also gradually increased direct investment in projects and supported industrial development through the dual model of "direct investment + fund of funds".
"Government guidance funds and state-owned funds of funds are growing day by day, and their influence on industries and industries is getting bigger and deeper." Zhang Jian, vice president of of Shenzhen Innovation Investment Group Co., Ltd., said that hundreds of funds are being set up in various places. The billion-level government guidance fund mainly hopes to drive local economic development through industrial collaboration and fund investment.
"In recent years, more and more government funds have emerged in fund of funds to guide the industry. I think this is also a feature of China's economic development." Yang Bin, president of Shanghai Science and Technology Innovation Fund, observed that in recent years, fund of funds management has shown regional trends. Characteristics of sinking and industrial segmentation.
Yang Bin analyzed that, first of all, it is sinking more and more. Industrial mother funds or guidance funds in various regions are mainly established in the original provincial capital cities, gradually extending to prefecture-level cities, and are currently "sinking" to districts and counties. The second is that it is becoming more and more subdivided. In order to exert the guidance and aggregation amplification effect in specific fields, on the basis of in-depth operation of comprehensive funds of funds, various localities are also promoting the establishment and operation of professional funds of funds in subdivided fields, such as ESG. , new energy, environmental protection, automobile industry chain and other topics. Behind the linkage of
multi-level guidance funds,
government guidance funds are constantly iteratively upgrading themselves to support the investment of sub-fund managers in a better way.
The "2021-2022 Government Guidance Fund Competitiveness Evaluation Research Report" released by the 21st Century Venture Capital Research Institute in July this year mentioned that some government guidance funds have begun to adopt the usual S strategy of market-oriented fund of funds. In the "fund of funds + On the basis of "direct investment", the allocation strategy of "PSD (sub-fund + second-hand share + direct investment)" is realized.
This newspaper has previously interviewed innovative cooperation methods based on the idea of "investment-recruitment linkage". That is to say, through the "industry + fund + park" model, the problem of dispersed point investment of guiding funds and local state-owned assets is solved, and policies, funds, and resources are more efficiently gathered in the physical carrier of the industrial park.
reporters learned in recent interviews that Shenzhen, Suzhou , Hefei, Qingdao and other places are carrying out collaborative linkage of guidance funds, bringing together the power of guidance funds to form inter-regional coordination and linkage. The fundamental reason why
guides fund linkage is: on the one hand, the industrial endowments of each regional sector are different and there is room for industrial cooperation. Complementary advantages and complementary factors can be achieved through guidance fund linkage; on the other hand, for the guidance fund management team, Not only can they work with government industry departments such as industry, information technology, development and reform, and science and technology to support the development of the sub-fund's invested companies, but they can also support the fundraising work of the sub-fund management team to a certain extent.
Wei Meng, deputy general manager of Qingdao Innovation Investment Co., Ltd., said that in addition to reducing the return investment ratio of guidance funds and relaxing the recognition standards for return investment, the team is also supporting the raising of sub-funds through multi-level guidance fund linkage. "We hope to provide more financial support to the sub-funds. By linking the districts and cities, we can also apply for provincial funding together to jointly strive for more funds for support."
More innovation also lies in guiding fund managers Collaboration with the CVC team. "Who is the most attractive and sticky to the industry? Of course it is the industrial fund." Zeng Yu, executive director and general manager of Guangdong Xiangrong Equity Investment Fund Company, told 21 Century Economic Report reporter that the funds managed by the team have already become CVCs. Sino-Singapore Sunac has invested, and there are relatively frequent exchanges between them.
"As the manager of a regional guidance fund, our cooperation with CVC is not limited to financial gains, but is more based on considerations of industrial linkage and cooperation. Matching the industrial cultivation demands of the region, and providing empowerment for the projects invested by the sub-fund Support.” Zeng Yu told reporters that by cooperating with CVC to establish an industrial fund to attract investment, “This is a relatively fast path to fund investment, and it is also particularly suitable for domestic investment. "
From optimization to quality improvement
"In addition to the increase in quantity, (guiding funds) have reached the stage of overall optimization and even quality improvement," Chairman of Henan Nongkai Industrial Fund Investment Co., Ltd. Liu Yang sees that government investment funds are becoming more open and market-oriented, there are more linkages between provinces, cities, and counties (districts), and the related attributes of the fund industry are also more obvious.
Mechanically speaking, there is a two-way choice between government guidance funds and fund management agencies. Government guidance funds need investment institutions to cooperate to achieve capital investment and economic transformation and development goals, while venture capital institutions need government guidance funds to leverage more social capital. In this kind of cooperation, the scientific design of performance appraisal mechanism is the cornerstone of long-term and sustained cooperation between the two parties.
Since 2018, my country’s government guidance funds have entered a stage of standardized development, and the management of government guidance funds has gradually improved. Compared with national-level guidance funds, government guidance fund policies in some regions are more flexible and more directional. Many provinces and cities have also revised guidance fund management methods to increase support for early-stage projects and guide social capital to invest in early stage, small and technology investments.
In addition, according to the sub-fund performance assessment methods issued by many places, government guidance funds are also building evaluation index systems from the dimensions of policy effects, social benefits and management effectiveness, playing a role in guiding fund capital investment and promoting local economic transformation and development. effect.
"Assessment is the baton. If the same assessment standards and assessment system are used, it will be difficult to achieve the goal of this fund and achieve sustainable development.Liu Yang added that the fund industry itself is also an industry. To realize the function of funds supporting the industry, government-guided funds should take into account the investment directions, investment fields and demands of different funds, and consider conducting differentiated assessments in business practice.
Local guidance funds still need to continue to iterate and evolve. In Wei Meng’s words, “A guidance fund can never become a fully market-oriented fund of funds, but it can gradually move closer to a fund of funds through more means and methods. ”
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