New PE regulations issued 4 months, 9 funds have completed filing, and foreign institutions are active (VC314)

Since the NDRC restarted PE fund filing in March 2011, 9 funds have completed filing. According to regulations, after the National Development and Reform Commission has filed, the fund can obtain the social security fund investment qualifications. From the perspective of the nature of the registered funds, the RMB funds led by foreign institutions have a positive attitude. It is worth mentioning that among the funds that have been prepared since March, there is no figure of Shanghai Fund.

Foreign-funded institutions are active in filing

At the beginning of 2011, the National Development and Reform Commission restarted the filing work after suspending the PE filing for half a year, and issued the “Notice of the General Office of the National Development and Reform Commission on Regulating the Development and Management of Recorded Equity Investment Enterprises in Pilot Areas” (the “Notice”). In the pilot areas (Beijing, Shanghai, Tianjin, Zhejiang, Jiangsu and Hubei, and Chongqing City were approved not long ago), equity investment enterprises that have completed industrial and commercial registration, and equity investment enterprises that target equity investment enterprises should invest in all three cases. Go to the National Development and Reform Commission for record and accept the record management. The three exceptions include: have been filed as a venture capital enterprise in accordance with the Interim Measures for the Management of Venture Capital Enterprises; the capital scale is less than 500 million yuan or foreign currency equivalent; established by a single institution or a single natural person wholly funded, or although two Investors above and above are funded and established, but these investors are all wholly-owned subsidiaries of an institution.

The original US dollar fund management institutions performed more positively. Among the funds that have been filed in 2011, the custodian institutions of five funds are the original dollar fund management institutions, such as Detong Capital, Sequoia Capital China, Lenovo Investment, Broadband Capital, Carlyle Group. Previously, the RMB funds of CDH, Hony, and IDG Capital were also filed with the National Development and Reform Commission, while SAIF and Xintianyu filed with their fund management companies.

Unlike previous foreign-funded or Sino-foreign joint venture management agencies that have to re-register a custodian institution with legal personality in China, Carlyle Group, which was successfully filed in July, has a record management company "Carlyle (Beijing) Investment Management Co., Ltd." The "Taiwan, Hong Kong, Macao and Domestic Joint Venture" company is a joint venture established by Carlyle and Beijing State-owned Capital Operation and Management Center. Carlyle holds 80% of the company's equity. Carlyle has thus become the first foreign equity investment company to be successfully filed after the PE reform of the Spontaneous Reform Commission has restarted.

Can qualify for social security investment

For private equity investment funds, the biggest attraction of the National Development and Reform Commission is the ability to obtain investment from the National Social Security Fund. Approved by the State Council in 2008, the National Social Security Fund invests in industrial funds approved by the National Development and Reform Commission and market-oriented equity investment funds filed with the Development and Reform Commission. The overall investment ratio does not exceed 10% of the total assets (by cost) of the National Social Security Fund.

So far, the Social Security Fund has invested in China-Belgium Fund, Bohai Industrial Fund, Hongyi Phase I Fund, CDH Phase I Fund, Mianyang Industrial Fund, Harmonious Growth Fund, Lenovo Investment Fund, Hony Phase II Fund and CDH Phase II Fund, Broadband Ten equity investment funds sponsored by 8 managers, including Tianjin Chengbai Equity Investment Partnership under Capital, promised a total investment of 15.655 billion yuan.

Among them, among the 6 funds that completed the filing before the "Notice" was issued in March, all except the Chinese Cultural Industry Fund have received investment from the National Social Security Fund. Another two are the pilot industrial funds of the National Development and Reform Commission. And Tianjin Chengbai has also filed with the ranks of successful funds after the "Notice". Analysts believe that the funds registered by Sequoia Capital, Detong Capital, Carlyle Group, Chunhua Capital and other institutions are likely to receive capital injection from the Social Security Fund.

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