Settlement scope:
(Photo courtesy of Gudishi Fund Town)
FOF that settles in the Xiamen Free Trade Area and Huli District can enjoy a maximum reward of 10 million yuan; a FOF that sets up sub-funds in the Xiamen Free Trade Area and Huli District can receive a maximum reward of 600,000 yuan …The "Measures for Promoting the Development of Private Equity Investment Funds of Funds in the Xiamen Free Trade Area" (hereinafter referred to as the "Measures") were officially released on the 26th. It is reported that this is the country's first special support policy for parent funds, which complements the development measures for equity investment enterprises previously issued by the Xiamen municipal and district governments and strongly supports the development of parent funds.
The "Measures" will come into effect on October 1 this year and will be valid for three years. The Xiamen Free Trade Area Management Committee stated that the promulgation of the "Measures" aims to promote the development of the private equity fund industry in the Xiamen Free Trade Area and Huli District, promote the gathering of domestic and foreign high-quality equity investment fund of funds, and actively create a wealth management innovation hub in Xiamen.
The package of policies and measures is filled with “real money”. The "Measures" have ten articles in total, focusing on settlement incentives, economic contribution incentives, investment contribution incentives, rental subsidies, etc. For example, for established FOFs, based on the actual capital amount, after the FOF invests in the first participating sub-fund, its management agency will be given a one-time settlement reward: if the actual capital amount is 5 billion yuan (inclusive) to 10 billion yuan, The reward is 8 million yuan; for projects above 10 billion yuan (inclusive), the reward is 10 million yuan.
In addition, if the parent fund leverages social capital to invest in the Xiamen Free Trade Zone and Huli District to establish sub-funds, it will receive investment contribution rewards. If the sub-fund scale is more than 5 billion yuan (inclusive), the reward will be 600,000 yuan. Qualified fund of funds management institutions can enjoy rent subsidies when renting office buildings for their own use in Xiamen, and corresponding rent subsidies will be given based on the actual amount of funds received.
The relevant person in charge of the Xiamen Free Trade Zone Management Committee said that the support policy for FOFs launched this time is directly aimed at the supply side. While promoting the development of FOFs, it will more effectively form a support for VC (venture investment)/PE ( private equity investment).
[Policy Interpretation]
| A package of measures full of "real money"
| There are ten articles in the "Measures", each of which is useful information. The intensity of settlement incentives can be described as "full firepower". For established FOFs, based on the actual capital amount, after the FOF invests in the first participating sub-fund, its management agency will be given a one-time settlement reward: actual capital amount The reward is 8 million yuan for those with RMB 5 billion (inclusive) to 10 billion yuan; the reward is 10 million yuan for those with more than 10 billion yuan (inclusive).
The "Measures" set up economic contribution rewards, which will be given to the parent fund and management institution's operating income value-added and main business profits, as well as the fund's management team members' relevant economic contributions to the Xiamen Free Trade Area and Huli District. 80% reward.
Establish sub-funds and receive investment contribution rewards
Parent funds leverage social capital to invest in the Xiamen Free Trade Zone and Huli District and establish sub-funds, and they will receive investment contribution rewards.
Specifically, if the cumulative scale of the sub-fund reaches more than 1 billion yuan (inclusive), the investment contribution of the team members of the parent fund management institution will be rewarded based on the actual capital received. Among them, the reward for sub-funds with a scale of 1 billion yuan (inclusive) to 2 billion yuan is 200,000 yuan; the reward for 2 billion yuan (inclusive) to 3 billion yuan is 300,000 yuan; and the reward is 3 billion yuan (inclusive) to 4 billion yuan. 400,000 yuan; a reward of 500,000 yuan for 4 billion yuan (inclusive) to 5 billion yuan; a reward of 600,000 yuan for more than 5 billion yuan (inclusive).
In addition, FOF direct investment industrial projects can apply for incentives by referring to the provisions of "Xiafu [2019] No. 279" document.
| Rental office space can enjoy rent subsidies
Qualified fund management institutions can enjoy rent subsidies when renting office space for their own use in Xiamen City.The "Measures" clearly state that a certain area of rent subsidy will be provided for three consecutive years based on the actual capital contribution of the fund of funds. The maximum subsidy per square meter shall not exceed 100 yuan/month. If the actual rental price is lower than 100 yuan/square meter/month, the actual rent will be calculated. Prices are subsidized.
Among them, those with an actual capital amount of 5 billion (inclusive) to 10 billion yuan will be given a rental subsidy of 250 square meters; those with an actual capital amount of more than 10 billion yuan (inclusive) will be given a rental subsidy of 300 square meters. The rent will be paid first and then paid later. , the maximum subsidy area shall not exceed the actual leased area.
It should be noted that when renting office space, it is encouraged to give priority to space carriers in the Xiamen Free Trade Area and Huli District. Enterprises that enjoy rent subsidies must promise not to sublease or lend.
Dishonest persons are not allowed to enjoy rewards and subsidies
The "Measures" apply to the joint investment promotion by the Xiamen Free Trade Area Management Committee and the Xiamen Huli District People's Government and the scale of opening custody accounts in our city's financial institutions reaches 5 billion yuan. (Inclusive) The above parent funds and their management institutions. If the size of the FOF is less than 5 billion yuan but complies with other supporting policies of Xiamen City, Xiamen Free Trade Area and Huli District, the relevant documents shall be followed; if it complies with these measures and other supporting policies issued by the city and district, the best but Don’t enjoy it twice.
In addition to investment contribution rewards, the cumulative application for various rewards and subsidy funds shall not exceed the economic contribution of the Fund of Funds and its management agency and management team to the Xiamen Free Trade Area and Huli District during the duration of the Fund of Funds. For example, in the current year If the economic contribution is insufficient to support the amount of rewards and subsidies, payment will be made using the deferred encashment method during the duration of the parent fund; if the same parent fund increases the paid-in registered capital within the validity period of the policy, the reward balance will be made up based on the paid-in registered capital after the capital increase.
Dishonest persons shall not enjoy rewards and subsidies.
Take multiple measures
Create a highland for innovation in wealth management
In order to better promote the clustered development of the financial industry, the Xiamen Free Trade Zone has carefully built a private equity fund platform. So far, the private equity fund platform has attracted 163 private equity fund managers registered with the Fund Management Association, and has launched 373 funds such as China Investment Fund Phase II, GLP C&D Emerging Industry Fund, and CICC Fund, with a scale of 137.6 billion yuan.
In addition, Xiamen Free Trade Zone is actively building a new development model of "guiding funds + joint investment promotion", and cooperates with relevant municipal departments and districts through industrial guidance funds to attract sub-funds to return investment or introduce industrial projects. As of the end of July this year, the Free Trade Zone Industrial Guidance Fund has participated in a total of 26 effective sub-funds, driving the scale of the sub-fund to 40.88 billion yuan and leveraging social capital 23.8 times; the sub-fund has invested in 217 projects with an investment amount of 15.95 billion yuan, of which It invested in Xiamen 22 local projects with an investment amount of 380 million yuan, which effectively promoted the direct financing of local enterprises; the sub-fund led to the implementation of 59 investment projects with a registered capital of 19.19 billion yuan.
This year, the Xiamen Free Trade Zone also vigorously promoted the implementation of pilot projects for foreign investment funds, adding a number of QFLP ( qualified foreign limited partners ) foreign funds such as Weiguang, Jinjing, and Chunhua Lu'an, becoming a gathering area for Xiamen QFLP .
As a "test field" for reform and innovation, the Xiamen Free Trade Zone has launched a total of 521 innovative measures over the past seven years since its establishment. Among them, innovative initiatives in the financial field account for a quarter, with more than 4,200 financial and quasi-financial companies gathered, and innovative work such as offshore trade, financial leasing, Taiwan finance, and financial digital construction are at the forefront of the country. The Xiamen Free Trade Zone Management Committee stated that in the next step, it will continue to explore and exert efforts in the financial field, increase policy publicity, give full play to the role of funds in attracting investment, and create an innovative highland integrating industry and finance with and wealth management to strongly empower the industrial development of the zone.
| [Tips]
" private equity investment fund of funds " refers to an equity investment that takes private equity investment funds as its main investment objects and is registered with China Securities Investment Fund Industry Association Capital funds (including multi-strategy funds that invest in sub-funds and corporate equity at the same time); "Food Fund Management Agency" refers to a private equity fund management company registered with the China Securities Investment Fund Industry Association or a specially established in Xiamen to manage the Fund of Funds General Partnership (GP); "Members of the management team" refer to the employees who have signed a labor contract with the parent fund or its management agency.
(Xiamen Daily reporter Wu Xiaojing, correspondent Zhou Ying Chen Xinzhong)
