By Qi Wei
In the investment circle, there is a saying that goes: “Exits are the be-all and end-all. No exit, no point in book value multiples.”
But this is not completely correct.
True, the exit is essential: it is how the investment bears its fruit. But book value and estimated value are equally important. They are the reason you can successfully exit your investment. So rather than pedestalizing the exit above all else, I would rather say that the three are inseparable.
Why Is the Exit Important?
Because exiting is tricky nowadays.
Cashing out is the chief concern of…
This week (2021.7.12–2021.7.18), PE Weekly covers fundraising news on PE market.
China Baowu to Launch $7.7 Billion Fund for Carbon Neutrality
16 July 2021 — — China Baowu Steel Group, China’s leading steel maker, has joined hands with National Green Development Fund, China Pacific Insurance, and CCB Financial Asset Investment to launch a CNY 50-billion ($7.7-billion) carbon neutrality fund, targeting CNY 10 billion ($1.5 billion) in the first close. The fund, with the investment focus on clean energy, green technology, environmental protection, and pollution prevention, aims to explore more premium carbon neutrality industrial projects in solar and wind energy…
Since Shanghai kicked off the first pilot for foreign-backed equity investment companies in 2010, Beijing, Tianjin, Shenzhen, Hainan, and eight other municipalities throughout China have dipped their toes into Qualified Foreign Limited Partner (QFLP) policy. And the results have been transformative, attracting significant capital and promoting critical development in next-gen industries within local jurisdictions.
Alongside major structural adjustments in related policies for qualified foreign institutional investors, 2020 brought the amendment of these QFLP policies in different pilot areas (especially Shenzhen). New QFLP pilot areas, Shenyang and Xiong’an, were also assigned despite the pandemic and cloudy geopolitical climate, opening the gate…
This week (2021.7.5–2021.7.11), PE Weekly covers fundraising news on PE market.
Shanghai Welcomes $155 Million Fund for Emerging Industries
5 July 2021 — — Shanghai has completed the registration of State Grid Emerging Industry (Shanghai) PE Fund. With targeted scale of CNY 1 billion ($155.4 million), the fund aims to set up sub-funds for different emerging industries such as industrial chip, IGBT, Database, energy service, geographical information system, offshore wind power plant, e-commerce, electric vehicle service, and blockchain. The total scale is expected to reach CNY 15 billion ($2.3 billion) during period of the 14th Five-Year Plan. Read more…
This week (2021.6.28–2021.7.4), PE Weekly covers fundraising news on PE market.
Zhejiang State-Owned Enterprises Embraces a Fund for Upgrading
July 2, 2021 — — Hangzhou Iron and Steel Co., Ltd. announced to set up a CNY4.01 billion fund in partnership with China Reform Holding Co., Ltd. and others. The fund will support state-owned enterprises in Zhejiang Province to carry out strategic restructuring, merger and acquisition, equity investment, private placement, debt-to-equity swap etc. In addition, it will also help state-owned enterprises in Zhejiang Province to tap into strategic emerging industries. Read more…
CNY100-Billion Infrastructure Fund in Shangdong Boosts Local Development
Local governments in China have come to realize that offering capital is crucial to attract businesses and develop local economies. And they are scrambling to rubberstamp the policy documents of government-guided funds (GGF) to attract quality projects and private equity (PE) firms. These offer the following incentives:
On June 4, 2021, the Rui’an government formally joined that scramble, issuing “The Policy to Guide Development of Industry Investment Funds…
This week (2021.6.21–2021.6.27), PE Weekly covers fundraising and policy news on PE market.
China Coal Group’s Subsidiary to Commit $155 Million to Goldstone FOF
25 June 2021 — — China National Coal Group (abbreviation as China Coal Group), a key state-owned enterprise, announced the commitment from its subsidiary China Coal Pingshuo Group to Goldstone FOF. The company commits CNY 1 billion ($154.8 million) as one of the LPs together with other institutional investors and companies specialized in coal industry. The fund aims to invest in fields such as coal, thermal-electricity, new energy, biomedicine, culture and tourism, equipment manufacturing, and…
This week (2021.6.14–2021.6.20), PE Weekly covers fundraising and policy news on PE market.
Shandong’s Pingdu City Sets up $465 Million Fund of Funds for Innovative Development
18 June 2021 — — Three local state-owned enterprises partners with Pingdu government to set up a CNY 3 billion ($465 million) fund of funds to promote local innovative development. The new vehicle aims to carry out cooperation with private fund management institutions to set up sub-funds to invest in equipment manufacturing, new energy, new material, IT, biomedicine, medical equipment, and modern agriculture industry. Read more…
Henan Welcomes $33 Million Fund for Biobase…
Sitting at a strategic location of Yangtze River Delta, Jiangsu province is thinking big picture to spur the integrated development of the booming city cluster. Top of mind is to connect industrial chains and accelerate internal circulation — the domestic hyper-cycle of production, distribution, and consumption. But with raising private capital becoming increasingly challenging, Jiangsu follows many Chinese provinces by launching a wealth of government-guided funds (GGFs).
Unlike Beijing, Shanghai or Guangzhou, Jiangsu doesn’t pick just one key area for establishing GGFs. Instead, it goes intra-provincial with big moves one after another. On January 6, 2021, the Jiangsu…
This week (2021.6.6–2021.6.13), PE Weekly covers Fundraising news on PE market.
China’s Companies Co-Launch $250 Million Fund for Wind Energy Development
10 June 2021 — — Ningxia Jiaze New Energy Co., Ltd has annonounced the partnership with CRRC Fund Management (Beijing) Co., Ltd, String Capital, CRRC Capital, and SEPCO to set up a CNY 1.6 billion ($250 million) fund for wind energy development. Read more…
Beijing Welcomes Third Secondary Fund
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