2017-投资界电子周刊No0523--英文版_14页_980kb

PEDaily E-Magazine Issue No.523 Summary

Core Content

This issue of PEDaily E-Magazine, published on Feb 24, 2012, provides an overview of the Chinese PE/VC industry, focusing on market trends, policy changes, and key developments. It highlights the challenges faced by domestic VC/PE institutions in terms of exit strategies and ROI, as well as the growth opportunities in emerging sectors such as TMT, clean-tech, and the culture industry. Additionally, it features news on fund launches, investments, and industry events, including a major PE/VC forum in Silicon Valley.

Main Views

1. A-Share Market and VC/PE Exit Strategies

• The A-share market is undergoing policy shifts, which are affecting the exit strategies of VC/PE institutions.
• IPO exits are becoming less attractive due to tightened IPO reviews and sluggish capital markets.
• As a result, ROI is shrinking, posing a threat to the development of domestic VC/PE firms.
• The CSRC's reform initiatives have accelerated, but challenges remain in market-oriented development.

2. PE/VC Industry Developments

• Cowin Capital is expanding its presence by hiring Ma Weiguo as a Managing Director and Partner.
• A new early-stage fund is being raised with a target size of RMB200M–300M, focusing on TMT, clean-tech, and biomedical industries.
• CITIC Capital has completed Round A fundraising for a US$60M VC fund, targeting high-growth SMEs in clean-tech, consumer goods, and IT.
• Shanghai is launching two new PE funds: Shanghai Shipping PE Fund and Shanghai Culture PE Fund, with the latter being managed by Haitong Securities.
• Over 50 PE funds have invested in the culture industry, with a total annual investment of nearly RMB30B, showing strong interest in this sector.

3. Alibaba.com Privatization

• Alibaba Group proposed the privatization of Alibaba.com, which is currently owned by the group and its concert parties (73.45% ownership).
• The privatization price is HK$13.5, equal to the IPO price in 2007, but 45.9% higher than the last closing price of HK$9.25.
• This move would require HK$17.9B to acquire the remaining 26.55% of shares, indicating a significant financial commitment.

4. Fundraising and Investment Performance

• Luxin VC is investing RMB20M in Huaxin Fund I, acquiring 20% equity.
• Huaxin Fund I is a limited partnership fund with a total size of RMB100M, and focuses on high-growth industries such as electronic information, energy saving, healthcare, and new materials.
• Junsan Capital has invested RMB30M in Zhuzhou Jiabang, a company specializing in tungsten and molybdenum products.
• The LED industry is expected to undergo fundamental changes in 2013, driven by technological advancements and cost reductions.

5. Legend Capital's Fund Performance

• Legend Capital, now known as Junlian, has completed Fund I with a seven-time average ROI.
• Fund II and III are also among the top 25 domestic investment institutions, and have delivered high returns to limited partners (LPs).
• The company is managing five USD funds and two RMB funds, with a total size of above RMB13B.

Key Information

• PEdaily E-Magazine is a weekly publication for PE/VC insiders, providing timely, accurate, and in-depth market reports.
• It is supported by 10+ years of research from Zero2IPO Group and aims to build a professional platform for market analysis and insights.
• The forum in Silicon Valley (May 3, 2012) is a key event for Chinese VC/PE professionals, offering opportunities to learn from overseas experiences and explore new opportunities.
• Shanghai's new PE funds are part of a broader strategy to shape the PE landscape in China.
• The culture industry is gaining attention from PE funds, with over 50 funds investing nearly RMB30B annually.
• Alibaba.com's privatization reflects strategic moves by major players in the Chinese tech sector.

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Conclusion

This issue of PEDaily E-Magazine reflects the dynamic nature of China's PE/VC market, highlighting both challenges and opportunities. It underscores the importance of diversified exit strategies, strategic investments in emerging sectors, and the role of policy changes in shaping the market landscape. The Silicon Valley forum and new fund launches indicate increased global engagement and industry growth.