What are the listing modes of private equity investment companies?

I. Participation Mode The participation of listed companies in private equity investment can maximize priority funds, tap the upstream and downstream capital values of related industries, and share the benefits of industrial growth. At the same time, some listed companies have jumped out of the traditional industries with thin profits and seized new profit growth points. Listed companies face less redemption pressure when they participate in equity investment, and pay more attention to the long-term development of the invested enterprises. At the same time, listed companies also actively pay attention to the development trend of enterprises, strengthen resource sharing and complementarity with various equity investment platforms, and promote the development of the company's equity investment business. After 10 years of operation, the listed companies in China private equity market have gradually formed their own investment style. According to the investment mode of listed companies participating in equity investment, there are currently four modes for listed companies to participate in private equity investment: 1, participating in private equity investment as LP, such as investment in CITIC Mianyang Science and Technology City Industrial Investment Fund by Oceanwide Construction and Gehua Youxian; 2. Listed companies set up their own departments or subsidiaries and branches for direct equity investment. For example, Youngor mainly conducts private placement business through its parent company Youngor Group Co., Ltd. and its wholly-owned subsidiary Ningbo Youth Investment Co., Ltd.; 3. Listed companies participate in VC/PE institutions, such as Volkswagen, Yantian Port and Guangdong Electric Power (as shareholders of Shenzhen Venture Capital). ); 4. Set up or initiate funds by yourself, such as Tencent's establishment of Tencent Win-Win Industrial Fund, and Fosun Group's establishment of multiple funds. Judging from the investment management degree of listed companies participating in private equity investment, indirect participation methods include participating in private equity investment as LP and participating in VC/PE institutions; The ways of direct participation include the establishment of departments or subsidiaries and branches of listed companies for direct equity investment and the establishment or initiation of funds by themselves. Of course, there are also many powerful listed companies involved in various forms, such as radio and television media, Fosun and Tencent. Two. Investment strategy Investment strategy 1: As LP, some listed companies participate in private equity investment. Due to lack of investment experience, limited investment team size and lack of research ability on industry investment, they choose to become limited partners of funds, and indirectly share the benefits of private equity investment by screening and investing in excellent funds in the industry. With the gradual maturity of local fund operation, a number of institutions with stable team and excellent historical performance have gradually formed in the domestic private equity market, and many listed companies and excellent institutions have gathered together in the market. For example, the LP of CITIC Mianyang Science and Technology City Industrial Investment Fund includes listed companies such as Fangda Carbon, Oceanwide Construction, Gehua Youxian, Yili, Youngor and Hualian. On the other hand, some listed companies have continuously participated in many excellent fund investments. For example, Yanghe shares intensively participated in the fundraising of Admiralty Jiatai (Tianjin) Equity Investment Partnership (Limited Partnership), Admiralty Jiatian (Tianjin) Equity Investment Partnership (Limited Partnership) and Shanghai Financial Development Investment Fund (Limited Partnership) at 20 1 1, and the subscribed capital contribution reached 8. 5%. Judging from the investment scale of listed companies participating in the fund, the investment amount of local listed companies is mostly above100000 yuan, which is much higher than the investment scale of high-net-worth individuals and the investment threshold of1000000 yuan by the National Development and Reform Commission, and they are ideal investors for raising funds in the current market. Investment strategy 2: listed companies participate in VC/PE institutions. In the initial stage of the development of private equity investment, listed companies took an active part in VC/PE institutions. Some VC/PE institutions introduce listed companies as strategic investors in the early days of their establishment, hoping to realize the diversification of institutional equity structure, and at the same time, they can use the resources and accumulation of listed companies in related fields to help institutions make better industry value investments. Take Shenzhen Venture Capital as an example. In 2009, Shenzhen Venture Capital Co., Ltd. started to introduce strategic investors to increase capital and expand shares, stipulating that potential strategic investors participating in the capital increase of Shenzhen Venture Capital Co., Ltd. should meet the following standards: 1, the enterprise has strong core competitiveness, has great influence at home and abroad, and ranks high in the industry; 2. Large scale, strong strength, net assets of not less than 65.438 billion yuan, total assets of not less than 2 billion yuan, good assets, and no major violations in the past three years; 3. Rich venture capital business resources. The top institutions in the industry hope to introduce strategic investors with a higher threshold, and also hope to achieve a win-win situation in equity investment business with the help of industrial investors. In this round of financing, Volkswagen once again increased its capital for Shenzhen Venture Capital and learned from the experience of Shenzhen Venture Capital's equity investment industry. In 20 10, Volkswagen registered and established "Shanghai Volkswagen Group Capital Equity Investment Co., Ltd.", trying to build its own brand in the venture capital industry. It can be seen that before you have the investment strength, you can build your own equity investment platform by participating in well-known equity investment institutions and then learning from them, which can reduce the investment risks caused by inexperience and blind equity investment. Investment strategy 3: set up your own department or subsidiary/branch to make direct equity investment. When they have certain industrial experience and resources, as well as certain capital market resources and capital operation experience, listed companies choose to set up departments, subsidiaries and branches for direct equity investment, and a number of outstanding enterprises with equity investment as their main business have emerged in the market, which has broadened their main business scope through venture capital business of subsidiaries. Typical listed companies include Radio and Television Media and Fosun International, and we will make a detailed analysis in the case. Investment strategy 4: set up or launch your own fund. As some listed companies have accumulated enough experience in the field of equity investment, these companies are constantly promoting their own asset management business, raising funds by setting up their own brand funds and becoming integrated enterprises in the industrial chain. To establish a fund with its own brand, listed companies need to have a deep industrial foundation, strong fund-raising ability and qualified investment management team. Different from general financial investment funds, funds set up by listed companies do not set the investment stage of the invested company because of their risk preference, but pay more attention to their strategic layout in the industrial chain and the long-term growth of the invested company. In terms of investment currency, industrial investors with equal strength will also choose dual currency operation, which can expand overseas business, bring foreign products, technologies and experiences back to China and look for new investment opportunities. While indirectly participating in private equity companies, some listed companies have also realized joint investment with the VC/PE institutions they have invested in. For example, Serene shares not only participated in the fundraising of several funds invested by Huarui, but also participated in the direct investment of Zhejiang Kang Hua Pharmaceutical and other projects invested by Huarui Fund; Yunnei Power not only became a shareholder of Gaotejia, but also directly held the equity of Boya Bio, a company invested by Gaotejia, and gained a lot of income when realizing IPO.