Private equity industry is ushering in the third round of reshuffle

 Private equity industry is ushering in the third round of reshuffle

A number of fund managers who grasped the bull market were strongly sought after by the market. The asset management scale of many fund managers has rapidly increased from several hundred million yuan to over ten billion yuan in just one year. The number of fund managers with a management scale of more than 10 billion yuan has increased significantly, which is also a significant phenomenon in this round of market.

For the mutual fund products, the income almost completely depends on the fund management fee. Even for the partial stock fund with higher rate, the annual management fee income is only 1.5% of the asset management scale. In the management fee income, the sales channel should also be divided into the follow-up Commission, which is usually 30% to 40% or even higher. The amount of reward finally received by fund managers is quite different from the money they make in managing fund products.

For private fund products, in addition to the annual 2% management fee income, there will be 20% performance commission. In the bull market, the net value of many funds doubled, which also means that fund managers will have very rich performance commission income. This is also the main reason why many star fund managers leave their own private placement.

The income from a bull market is equivalent to the income of a public fund manager for more than 10 years or even longer, which is the consideration factor for many fund managers to go private. Of course, in addition to income factors, the pursuit of self-worth or a more free lifestyle is also an important reason for many fund managers to go private.

Since this year, many investment stars have chosen to leave to establish private equity funds. Statistics show that more than 200 mutual fund managers have left their posts this year. Among them, Yu Yang, former star fund manager of Wells Fargo, joined Shanghai Qinmu assets; Yu Jiangyong, a big investor of Fuguo fund, founded Fengyan investment; Lin Peng, star fund manager of Dongzheng asset management, founded harmony Huiyi; Yu Haifeng, former star fund manager of Taikang assets, founded Shenzhi asset.

From the perspective of the development process of domestic private equity funds, in the bull market in 2007, a number of public fund managers left to establish private equity funds, with Danshui spring and Xingshi investment as their representatives; in the bull market in 2015, more than 100 public fund managers left to go private, including Qi Dongchao of huitianfu fund, Dang Kaiyu, Liu Tianjun and Huaan fund of Harvest Fund Since this year, the turnover of public funds has been the third round of going private in the industry. With the interpretation of market conditions, it is expected that more fund managers will leave to go private.

From the current situation of the development of mutual fund managers after going private, the reality is not as good as the ideal. Over the past 10 years, hundreds of public fund managers have chosen to abandon the public for private investment, but few private equity funds can really become stronger and bigger. In May last year, the China Securities Association issued the rules for the management of offline investors in the initial public offering of stocks on the science and Technology Innovation Board, which requires that the scale of private funds participating in the offline new public offering must be more than 1 billion yuan for two consecutive quarters. Of all 9720 securities private placements, only 381 reached the standard, accounting for less than 4%.

From the past two rounds of development of the private fund industry, we can see that the great development period is often the period of intensified shuffle. It can be foreseen that only a few private equity funds can really develop and grow.

Source: Ren Hui, editor in charge of Shanghai Securities News_ NBJ9607