Since 2024,s**Deeper and deeperStep into the line of sight of PE VC。As more and more buyers enter the equity market, the S** market is becoming more and more concerned, the market liquidity demand is strong, and the future development space is huge.
Just after the Spring Festival of the Year of the Dragon, first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen continue to develop vigorously. On February 21, the people of Guangdong Province issued a notice to encourage social capital to set up a private equity secondary market in accordance with laws and regulations**(S**)S** can help investors regain lost unicorn companies and have the opportunity to regain treasures through various share transfer pilots.
Capital is vying for the layout of s**
Inject new vitality into the S market
With the increasing number of sellers in the private equity secondary market, the bargaining power of the buyer has gradually increased, and financial institutions are optimistic about the S** market. In addition, as an asset with high certainty and short maturity, S** has attracted extensive participation from financial institutions such as asset management, banks, insurance, and trusts, and has attracted the attention of first-tier cities and developed provinces across the country.
S** is a new channel and new option to solve the exit of the primary equity investment market. In the face of the huge stock of equity withdrawal from the market, LPs of all parties, including **guidance**, market parents, financial institutions, etc., have laid out the S market to inject new vitality into the S market.
According to the data of Zhizhong, in the first half of 2023, **institutions, **investment platforms, **guidance**, industrial capital, wealthy families and individuals are still the sameThe main contributors of RMB** in China's equity investment market have disclosed a total of 80 subscribed capital contributions1%。
According to statistics, the amount of buyers' transactions in China's S market in 2022Dominated by ** funds, the proportion is as high as 5186%, followed by financial institutions at 20%.Corporate and individual investors are also more active (see chart below).
Chart: Distribution of buyers' transaction value in 2022 (unit: 100 million yuan).
Source**: China Private Equity Secondary Market 2023
At present, the domestic and foreign environment is complex and profoundly changingInvestors on assetsofDiversified allocation and liquidity demand have increased significantly, and the state has issued a number of support policiess** (Secondary Fund) has become more active in the domestic private equity secondary market, the investment participation of financial institutions has been greatly improved.
s** do a good job as a market leader
One of the most important ways to allocate assets
As a huge buyer in the S market, the parent ** attribute of S**It can absorb high-quality resources in the equity market, and channel the LP money in the market to the PE secondary market, so as to expand the stock of funds in the entire market。As a professional buy-side institution, S**'s evaluation of transaction assets, the design of transaction structure, and the negotiation of transactions are far ahead of the current S market.
At present, the domestic S** industry is in the early stage, and because the S** covers a wider range of industries, it has higher requirements for the professionalism of talents. Stronger liquidity, greater certainty of the underlying assets, and fast return of funds are the advantages favored by buyers and sellers, which makes it an important option for the exit route of the stock **.
At the same time,Due toS trading is cyclical, deterministic and secureS** has also become an investor initiativeConductedOne of the important ways of asset allocation. The addition of financial institutions has not only brought a lot of capital support to S**, but also introduced an experienced investment service team, which has solved the problem of lack of S** talents to a certain extent. At the same time, for a certain proportion of the underlying assets of the first share of listed companies, the professional investment team and the financial empowerment provided by the group play a key role.
s** playThe main force in the market
Analysis of investment and profitability logic
China's PE equity market has entered a period of stock optimization. s** becomespeThe new darling of development will also become an important main force in the active capital market, especially the equity market. According to the investigation of Baoli researchers, the investment advantages and profit logic of S** are mainly as follows:
OneThe cost is lowerThe yield is higher
First of alls** in purchasepeequity** or project shares, there is usually a certain discountThis is because there is information asymmetry in the secondary market of PE equity, and the seller is willing to ** its share at a certain discount. At the same time, due to the trillion-level private placement** facing strong exit pressure, and the S** market volume is still small, it has stronger bargaining power and can strive for more favorable **. As a result, S** is able to obtain high-quality underlying assets at a lower cost, thereby increasing its yield.
Secondlys** by investing in what already existspeequity** or projects, which can save some upfront due diligence and post-investment management costs。These costs are typically higher in traditional private equity**, so the cost of S** is relatively low, which in turn increases its yield.
AgainS**'s management team typically has extensive investment experience and expertise to better identify and evaluate investment opportunitiesto earn more money. At the same time, S**'s investment strategy is also relatively flexible, which can be adjusted and optimized according to market conditions and investment objectives to further increase its return rate.
Second,The investment horizon is shorterThe payment cycle is fast
The operation cycle of ordinary ** is longer, while S** enters in the more mature period of the proposed investment, and its term is much shorter than that of new **, which effectively improves the liquidity of investors and PE** and can obtain a shorter return cycle.
With the in-depth development of the capital market, S** provides investors with more diversified exit methods and more certain investment expectations.
At present, the market-oriented S** engaged in professional management in China is relatively scarce. Baoli InvestmentAs a professional investment service company, it focuses on the new generation of information technology, semiconductor chips, medical health, advanced manufacturing and other scientific and technological research fields, and improves the asset allocation strategy through differentiated services, so as to promote the high-quality development of the S market with a professional attitude.