The number of private placements of 10 billion yuan has increased to 95, the private equity army is not far from the "double hundred", and 14 quantitative 14 of the 10 billion yuan have been increased during the year, and Tongyuan and Chongyang have their own reasons for temporarily separating 10 billion

Financial Associated Press (Beijing, reporter Li Lujia) news, the private equity industry has entered the era of 19 trillion yuan. According to the latest statistics from the Asset Management Association of China (hereinafter referred to as the Asset Management Association of China), as of the end of September this year, the management scale of existing private fund managers reached 19.18 trillion yuan, an increase of more than 3 trillion yuan over the beginning of the year, a new record high. At the same time, there were 24,512 existing private fund managers, an increase of 108 from the previous month and an increase of 0.44% month-on-month.

In this context, the data of the private placement network shows that the number of 10 billion private placements increased by 6 in October. In addition to the newly promoted Hefu Investment in mid-October, there were 5 new 10 billion-level private placements of Ruiyang Investment, Jiuying Assets, Faner Investment, Shenyi Investment and Abama Assets. As of the end of October, after excluding the "left behind" private placements, the total number of 10 billion private placements was 95.

"Under the background of the continuous turbulence of the A-share market this year, the market has been reshuffled, and private equity institutions have shown a situation of differentiated performance in stages." Industry insiders said. The reason is that in the era of large asset management, the private equity market is competing for deer, and in the face of changing market styles, the head private equity will have more anti-risk ability and the strength to obtain excess returns.

Furthermore, thanks to the increasing abundance of financial derivative instruments such as margin financing and the abundant liquidity of the market, the head quantitative private equity institutions have shown a leading advantage. For some of the stronger old tens of billions of private placement due to the style of the performance is not good, this is only temporary, with the market style switch, the performance is expected to be improved.

The number of 10 billion private placements increased to 95

According to the data of the private placement network, the number of 10 billion private placements increased by six in October, and as of the end of October, after excluding the "left behind" private placements, the total number of 10 billion private placements was 95.

Further, in addition to the newly promoted 10 billion-level Hefu Investment in mid-October, there have recently been 5 new 10-billion-level private placements of Ruiyang Investment, Jiuying Assets, Fan'er Investment, Shenyi Investment and Abama Assets.

According to public information, Jiuying Asset is a 10-billion-level private placement with bond strategy as the core strategy, the products of Ruiyang Investment are mainly subjective bulls in stocks, and Hefu Investment, Faner Investment, Shenyi Investment, and Abama Assets are all quantitative private placements. As of now, the total number of 10 billion quantitative private placements has increased to 24, an increase of 14 in less than a year.

As a new 10 billion private placement. Zhan Haitao, general manager of Abama Assets, once said that the first thing to do investment is not to forget the original intention, and the second is to continuously upgrade, iterate and innovate. The scariest thing in the market is not that there are no opportunities, but that there are too many opportunities and temptations. Do not forget the original intention is to do valuable, precipitated, only in this way can we truly form the core competitiveness. This tests the vision and rhythm of the future trend development of the entire industry. At the same time, we must dare to do it in the future and dare to adapt to changes.

Shen Yi, chairman of Shenyi Investment, said that the company's development process is a process of step-by-step accumulation and precipitation, the so-called "burst point" does not exist, and there are three points of growth experience: First, cooperate with various types of investors. Second, the strategy should not be too considerive of the market's preferences and their own comfortable ideas, but should first lay out the strategy first. Third, we must be trustworthy.

In October, there were also 2 private placements that withdrew from the 10 billion-level "club", namely Tongyuan Investment and Chongyang Investment, both of which are veteran private placements that have been established for more than 10 years.

According to public information, Chongyang Investment was established in June 2009, most of the products under Chongyang Investment are managed by individual or participatory management, and Qiu Guogen is also the chairman of Chongyang Investment. The other private equity Chongyang strategy under the helm of Qiu Guogen is still in the tens of billions of "clubs".

Looking at Tongyuan Investment, the company was established in April 2006, the company's legal representative changed during the year, Guan Huayu withdrew, and Xue Lingyun took office on July 14, 2021. Some insiders pointed out that the redemption of products caused by executive changes may be the main reason for the decline in the scale of Tongyuan's investment. According to the data of the enterprise early warning pass, from the perspective of the company's equity structure, 69.67% of the shares held by 20.901 million shares were invested, and Wang Wu invested 9.099 million shares and held 30.33%.

The number of quantitative private placements of 10 billion yuan has increased sharply

There is no doubt that in the private equity jianghu in 2021, quantitative private equity is more "eye-catching".

According to the "2020 Private Equity Statistical Analysis Briefing" released by the China Foundation Association, as of the end of 2020, there were 13,465 quantitative/hedge strategy funds (including FOF), with a total scale of 699.987 billion yuan. However, only half a year later, the total scale of domestic quantitative private placement officially passed the trillion yuan mark, and the number of tens of billions of quantitative private placements also increased to 18.

According to the estimation of the research department of CITIC Securities, as of the end of the second quarter of this year, the assets under management of domestic quantitative private equity funds reached 1,034 billion yuan, and the proportion of the securities private equity industry climbed to 21%. In other words, in the first half of 2021 alone, the scale of domestic quantitative private placement increased by about 43%.

Up to now, the data of the private placement network shows that the total number of 10 billion quantitative private placements has increased to 24.

The rapid rise in the scale of quantitative private placement has also triggered investors' concerns about the capacity of the strategy, and some quantitative private placements have chosen to close the market. According to incomplete statistics, during the year, there have been 6 tens of billions of quantitative private placements to seal their products, namely Jinge Liangrui, Qilin Investment, Evolution Capital, Tianyan Capital, Yanfu Investment and Lingjun Investment, and the main products of the closure are neutral strategic products and index enhancement products.

In fact, closures are not uncommon in the private equity industry. For example, Magic Square Quantization was sealed at the end of 2019 at the time of 20 billion yuan, but this year's closures are significantly more than in previous years. Of course, the strategic capacity is not a rigid number, such as the rumored magic square has reached a scale of 100 billion, there are still good returns in 2021.

Looking back 4 years ago, the total scale of domestic quantitative private placement was still floating up and down in the hundreds of billions of yuan, but now it has exceeded one trillion yuan, and 2021 can be called a milestone in quantitative private placement.

However, the equity dispute between Yuan Yu and Li Shuo, the two founders of 10 billion quantitative private equity Mingshi Investment, has raised concerns about the corporate governance of private equity institutions. According to Tianyan, the equity ratio of Mingshi Investment was changed on October 20, and Shanghai Songmeng Investment Management Co., Ltd. (hereinafter referred to as "Shanghai Songmeng") was changed to a major shareholder holding 85% of the shares, and the legal representative was changed from Li Shuo to Yuan Yu.

On the surface, Mingshi invested in Yuan Yu and regained control of the company. After the penetration, after the change of equity in Shanghai Songmeng, Yuan Yu held 72.5% of the equity and indirectly held 61.625% of Mingshi Investment, while Li Shuo held 10% of Shanghai Songmeng and indirectly held 8.5% of Mingshi Investment.

But the problem with the incident is that the "Letter to All Employees" issued by Yuan Yu exposed the nominee holding agreement signed by Yuan Yu and Li Shuo. The Several Provisions on Strengthening the Supervision of Private Equity Investment Funds, promulgated at the beginning of this year, explicitly prohibits nominee holding.

Why does quantitative private placement win?

It is not difficult to find that in the bull market in 2020, the net increase of 10 billion quantitative private placements is 6, while in 2021, it has increased by 14 in the first ten months alone. Not only that, the proportion of quantitative private placement in the tens of billions of private placements has also increased from 16% at the end of 2020 to 25% today, which is equivalent to 1 in every 4 tens of billions of private placements. If a year ago, quantitative private equity was still a new force in the industry, then this year, quantitative private equity has grown into a force that cannot be ignored.

The reason why the rise of head quantitative private placement is so fast is because of the excellent performance of quantitative private placement in the shock market. Since the beginning of this year, the overall performance of tens of billions of quantitative private placements has led the subjective faction. According to the data of the private placement network, as of the end of October this year, 24 tens of billions of quantitative private placements have all achieved positive returns, and the average return is as high as 18.32%. The average return of the 57 subjective 10 billion private placements with income display has been 6.59% this year, of which 40 have achieved positive returns during the year, accounting for 70% of the positive returns.

Further, since the beginning of this year, the top 10 billion quantitative private placements with the highest income performance include Mingshi Investment, Jiaqi Investment, Tianyan Capital, Century Frontier Assets, Jinge Liangrui, Fan'er Investment, Inno Assets, Qilin Investment, Jiukun Investment, Lingjun Investment, etc.

Industry insiders pointed out that this year's market environment has given natural soil for equity quantitative strategies, which is largely due to the rise of index-enhanced funds.

Yin Tianyuan, research director of Chaoyang Perpetual Fund Research Institute, believes that the CSI 500 index increase strategy still has investment attractiveness. She analyzed that although the monthly market activity showed signs of decline, from a medium- and long-term perspective, combined with the position of the index valuation, the cost performance of such strategies is still more prominent.

Hu Bo, fund manager of the private placement network, also said that next year, the CSI 500 index has a high probability of bright performance, and the beta part of the relevant index enhancement strategy will still perform, but the current market index enhancement product scale is larger, and the short-term excess return may fall.

"The overall performance of the follow-up neutral strategy and arbitrage strategy is likely to remain stable, and the market environment of A-shares this year is still more friendly to index enhancement or market-wide quantitative stock selection strategy." At present, the hot spots of A-share are still rotating rapidly, and the quantitative stock selection strategy is expected to achieve eye-catching results. Industry insiders pointed out.