Author丨Cao Yuan.
Editor丨Sun Chaoyi.
Figure source丨Figure worm.
Super LP "Social Security** has shot again.
Recently, the "Social Security Bay Area Science and Technology Innovation Equity Investment (Shenzhen) Partnership (Limited Partnership)" (hereinafter referred to as the "Social Security Bay Area Science and Technology Innovation Special Project" was officially registered. The National Council for Social Security (hereinafter referred to as the "Social Security Council") serves as the LP.
According to the information of Tianyancha,The registered scale of the ** entity is 5.1 billion yuan. Among them, the social security ** will subscribe to the capital contribution of 5 billion yuan, and the subscribed capital contribution of Shenzhen Capital Red Earth Private Equity Investment ** Management (Shenzhen) ** is 100 million yuan, which is the ** manager of Shenzhen Innovation Investment Group*** hereinafter referred to as "Shenzhen Capital Group").
As early as September 25, 2023, at the Shenzhen Industrial Investors Conference, Shenzhen officially announced its cooperation with the National Social Security Council. According to the relevant person in charge at that time, the "Guangdong-Hong Kong-Macao Greater Bay Area Science and Technology Innovation Special Project" has entered the stage of substantial promotion.
It is independently funded and established by the National Council of Social Security, and cooperates with Shenzhen City, focusing on supporting science and technology enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area to carry out key core technology research and transformation of scientific and technological achievements, and accelerate the realization of high-level scientific and technological self-reliance and self-reliance.
The "third son" of social security **local special ** landed in Shenzhen
Every move of "super LP" social security ** will always attract countless attention.
In 2022, social security** will continue to invest in industries as LPs**, such as Haifu Semiconductor**, etc. In 2023, the social security will prefer special projects with regional colors, focusing on serving the real economy and supporting scientific and technological innovation.
In July 2023, the social security **Zhongguancun Independent Innovation Special** held a kick-off meeting in Beijing, which was funded by the social security ** with 5 billion yuan, and Legend Capital served as the manager. In November 2023, the unveiling ceremony of the Yangtze River Delta Science and Technology Innovation Equity Investment in the Yangtze River Delta was held in Shanghai, which was funded by the National Social Security Group, with an initial scale of 5.1 billion yuan, and IDG Capital served as the manager.
So far, the registration and establishment of the social security Bay Area Science and Technology Innovation Special Project also means that after Beijing and Shanghai, the "third son" of the social security local special project has landed in Shenzhen
The full name of social security is the national social security, is the national social security reserve, by the budget allocation, state-owned capital transfer, investment income and other approved ways to raise funds, established in August 2000, specifically for the peak period of the aging of the population pension insurance and other social security expenditures supplement, adjustment, by the National Social Security Council is responsible for the management and operation.
In the current market environment where it is difficult to raise funds, long-term and stable social security ** is "diligently pursued" by many PE VCs. However, the industry knows that the selection criteria for managers of social security are very strict.
A private equity investment partner who has been in contact with social security has revealed to the 21st Century Business Herald reporter that social security may be the most professional in China, and the most market-oriented operation characteristics of the LP institutions, its due diligence work is quite detailed, not only a comprehensive investigation of private equity ** past performance and investment strategy, but also research performance is created by the above investment strategy, or from other factors. In addition, Social Security** will also collect data on the investment decision-making process of all projects of private equity** to check whether its investment decision-making mechanism is scientific and whether the core team is stable.
Wang Zhongmin, former vice chairman of the National Social Security Council, once said that the most important thing in the selection of GP is two levels, "the first is the stability of the team, and the second is the system that supports the team." It's a two-fold issue, but both are very important. "In detail, in terms of team stability, the team of ** managers is required to be stable; In terms of the company's team system, it requires a stable and effective system in human resources, rewards and constraints, discipline and other aspects. In view of these two aspects, the social security ** will conduct a systematic and long-term inspection of GP.
The rigor of the screening can be seen from the GPs that social security ** has always cooperated with. Most of its cooperative GPs are first-tier veteran institutions, such as Sequoia China, Hillhouse, IDG Capital, Legend Capital, Matrix Partners, CDH Investments, Hony Capital, SDIC Innovation, CITIC Capital, CMB International, Gimpo Investment, Boyu Capital, etc.
The GP Shenzhen Venture Capital of this cooperation is also a veteran local venture capital in Shenzhen. In 1999, it was established by Shenzhen Municipal Government and guided by social capital, with a total scale of about 466.5 billion yuan under management. As of January 31, 2024, Shenzhen Capital Group leads the industry in the number of investment enterprises and the number of listed investment companies: 1,794 venture capital projects (1,499 enterprises) have been invested, with a cumulative investment amount of about 107.7 billion yuan, and 568 investment enterprises (including IPOs) have been withdrawn.
In 2004, it tested the water equity investment**, with an investment scale of nearly 300 billion
In 2004, the social security company was involved in equity investment, and invested in Haifu Industry for the first time. In the following years, the "super LP" of social security** continued to "shoot" prudently.
According to the Social Security Council, in recent years, the Social Security Council has invested in key industries such as advanced manufacturing, artificial intelligence, and semiconductors by investing in more than 30 market-oriented equity companies. Through equity investment, social security** has provided capital support for more than 6,000 enterprises, with an investment scale of nearly 300 billion yuan and an annualized return on investment of 12%.
According to the statistics of the executive data, from the perspective of the type of investment, social security ** prefers growth ** and entrepreneurship**. From the perspective of the distribution area, Shanghai and Guangzhou have the highest subscribed capital contributions. From the perspective of investment fields, the coverage areas of social security** include medical and health, advanced manufacturing, enterprise services, manufacturing, consumption upgrading, etc.
However, it is worth noting that under the challenges of the overall economic environment, social security investment cannot be "left alone". According to the 2022 annual report on social security released by the National Council of Social Security**, since its establishment, the average annual investment rate of return of the national social security ** has been 766%, and the latest announced return on investment in 2022 is -507%。
It is rare in recent years for earnings to fluctuate. In September 2023, the relevant person in charge of the Social Security Association responded in response to reporters' questions, "Objective analysis, mainly in 2022, the global political and economic situation will undergo profound changes, the financial market will be more turbulent, and the investment operation will face a very difficult situation, and major international and domestic asset classes will appear sharply."
However, the person in charge also said, "On the whole, although there was a certain amount of book loss in the year, it also laid the foundation for obtaining long-term better returns." The social security-related assets throughout the year have beaten the corresponding market index, and are within the risk level that can be taken, in line with the risk budget requirements. ”
VC PE is looking forward to the opening of the floodgates for long-term funds
At present, the problem of RMB fundraising is becoming more and more difficult, and VC PE is looking forward to the opening of long-term funds represented by social security**.
On December 6, 2023, the Ministry of Finance and the Ministry of Human Resources and Social Security revised the Interim Measures for the Administration of National Social Security** Investment, drafted the Measures for the Administration of Domestic Investment in the National Social Security** (Consultation Paper) (hereinafter referred to as the "Consultation Paper"), and solicited public comments.
Compared with the previous proportion of social security investment and equity assets, which shall not be higher than 40%, the Consultation Paper proposes that the maximum investment ratio of social security investment and equity assets can reach 40% and 30% respectively. Zhao Jun, director of the Planning and Research Department of the Social Security Association, analyzedThe "Consultation Paper" clarifies that the upper limit of the proportion of social security and equity investment is 40% and 30% respectively, which matches the nature of long-term funds and strong risk tolerance
Wang Zhibin, director of the equity assets department of the social security association, also said that the "Draft for Comments" will include qualified direct equity investment, industry investment and equity investment (including venture capital) into the scope of social security investment, which will further promote social security to provide capital support for the real economy through direct equity investment and equity investment, and better play the unique role of long-term funds in supporting scientific and technological innovation and the construction of a modern industrial system, and provide "source of living water" for the development of strategic emerging industries.
Local governments are also actively exploring and striving for social security to participate in equity investment, and exploring social security to carry out equity investment pilots。In January 2022, the Beijing Municipal Science and Technology Commission and other seven departments jointly issued the "Several Measures on Accelerating the Construction of High-quality Venture Capital Clusters", which mentioned that "the Beijing Municipal Science and Technology Commission and the Zhongguancun Management Committee will provide risk subsidy support to social security**, insurance funds and wealth management funds that meet the relevant conditions and have an actual capital contribution of more than 300 million yuan." "Encourage all kinds of pensions, insurance funds and other long-term capital to expand the proportion of equity investment in accordance with laws and regulations, and explore social security** and annuity in accordance with the relevant provisions of the state to carry out equity investment pilots." ”
In June 2022, with the approval of the Shenzhen Municipal People**, the Shenzhen Local Financial Supervision Bureau and the Futian District People** issued the "Several Measures of Shenzhen on the Construction of Xiangmihu International Venture Capital and Venture Capital Block", pointing out that social security ** and annuity will be explored to carry out equity investment pilots in accordance with laws and regulations.
In the market environment where financing is difficult and expensive, VC PE "calls" for long-term funds represented by social security. For the future development, Wu Jianli, vice chairman of the social security industry, has said that in the future, the social security will explore the nodes with technological breakthroughs and profit prospects in the intelligent, green and integrated development of the industrial system, select projects from top to bottom to carry out direct equity investment, and increase equity investment, leverage more social capital to invest in key industries, improve and improve new models such as special projects and co-investment, and guide external cooperative institutions to better serve the construction of a modern industrial system.
sfc
Editor: Zhong Hailing, intern: Zhao Fengling.
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