The head effect of private placement is obvious, and performance persistence is a hard indicator

 The head effect of private placement is obvious, and performance persistence is a hard indicator

This year, the head effect of the private equity industry is more and more obvious. By contrast, small and medium-sized private placement is obviously at a disadvantage. Even though the performance is fair, the difficulty of raising funds is still not small.

Fu Rao, director of Beijing Jinzhang investment research, said that for small private placement, due to the increasingly fierce market competition, as well as increased technology and personnel costs, in the past, small private placement could achieve profit and loss balance in the management of a small scale. However, it is not the same today. Today, a larger scale can attract more talents and improve the system, which makes resources continue to focus on the head and form Its not a good cycle for small private placement.

According to the analysis of golden axe investment and Research Center, from the growth path of the 60 private placement companies which are among the 10 billion clubs, most of the actual controllers are born in technical classes, most of them come from Beijing, Shanghai, Guangzhou, Shenzhen and other major private equity towns. The folk practical school and the private placement outside the major private equity towns can also rely on their own ability to achieve a scale of 10 billion.

Tang Xinqing, director of the asset allocation division of the wealth management and Private Banking Department of the head office of China Construction Bank, told reporters that they preferred to cooperate with professional institutions with fund and securities background, especially those with regular military background who have experience in social security management. Private placement for non professional private schools is not exclusive, but the inspection time will be longer and the access requirements will be more stringent.

Tang Xinqing pointed out that the biggest problem of quantitative private placement is that the strategic model is not open, and there is a certain decision-making risk in judging future performance based on historical performance. Moreover, the understanding of individual investors for quantitative private placement is still limited to seeing flowers in the dark. If the performance does not conform to expectations, it is not easy for customers to understand.

Fu Rao also believes that the expansion scale of quantitative institutions may be too radical. Quantitative strategy is not subjective, and the scale that can be accommodated is relatively large. The income of quantitative transaction is highly related to the fluctuation and transaction level of the market. Once the market environment is unfavorable and the performance is not as expected, it will have a great impact on the quantitative organization, and the withdrawal of funds will be quick.

The key is performance continuity

He Wenqi, founder of Chengqi assets, believes that the emergence of Matthew effect is a manifestation of the industrys maturity. In particular, the quantitative private equity fund, with its wild and explosive development in the past few years, will gradually move towards a mature and professional direction. In the past, some small and medium-sized private equity companies pursued short-term income and scale through a fresh strategy, and soon entered a bottleneck period. Many of the star private equity funds in the past have even withdrawn from the market. In his view, only based on long-term accumulation, orderly pursuit of reasonable income and scale, and precipitation of their own relative advantages, can we achieve long-term healthy development.

Iluo investment believes that when there is sufficient hot money flow in the market, although large institutions have more advantages in gathering resources, small and medium-sized private equity can still benefit from it. After entering the market stock game, unless small and medium-sized private placement has a certain background or customer stickiness, it will face difficulties in the competition for resources such as capital introduction, talent absorption and channel support.

Mingshi investment also pointed out that the probability of polarization in the future is not low, because of the difference in comprehensive investment and research ability and the strength and weakness of individual ability, it is difficult to catch up with each other, and there is a high probability of multiple 100 billion level private placement.

However, the threshold of quantitative private placement is indeed higher and higher. Cai Meijie, chairman of Lingjun investment, pointed out that the performance of quantitative industry is obviously better than that of small and medium-sized quantitative private placement this year, because this industry is an arms race attribute and needs constant investment and iteration. She said that Lingjun invests about 200 million yuan in investment and research every year, which is a relatively difficult problem encountered in the initial stage of general quantitative private placement. Of course, no matter what stage of development of quantitative institutions, performance sustainability is the key, which is also a common issue for all asset management institutions.

Fu Rao believes that for the head of private placement, there are two necessary conditions to maintain the lead, one is the continuous leading performance, the other is perfect governance. Good performance is an important basis for maintaining scale. If the scale is large, the performance will be affected immediately, and the scale is difficult to maintain. Therefore, within the scope of its own ability, steady growth is a better choice. With the expansion of company scale, the importance of corporate governance will gradually increase.

There is still room for the forces Nouvelles

Looking forward to the future, juming investment said that in addition to the head organization, there are also new forces coming out, which will definitely grow into a new head in the future.

Hanhe capital said that in the long run, Chinas economy will develop into the worlds largest economy, which is a development trend with historical inevitability. This trend means that in the future, a number of leading enterprises with global competitiveness will emerge in all walks of life in China, including asset management industry.

He Wenqi pointed out that compared with the European and American markets, the domestic private equity industry still has a lot of room for development. New high-quality fund managers and investment teams may emerge in both subjective and quantitative investment fields.

Source: Ren Hui, editor in charge of China Fund News_ NBJ9607