QFLP Shanghai pilot accelerates Guosheng Lyon to surface (VC310)

Two new foreign PEs in the Shanghai QFLP pilot project. The latest news from the Shanghai Financial Office shows that the total number of QFLP pilots has expanded to five.

"In order to strengthen the management of the pilot enterprises, the Shanghai Financial Office is preparing to recruit a group of middle and senior management personnel with more than 5 years of experience in the PE industry as appointment civil servants." Fang Xinghai, director of the Shanghai Financial Office, revealed at the "2011 China Equity Investment Forum".

Guosheng Lyon surfaced

"The two new QFLP pilot PEs should be SoftBank China and Guosheng Lyon." The source revealed.

Previously, at the end of the first quarter of 2011, Carlyle / Fosun, Blackstone (Blackstone Group) and Detong Capital became the first pilot enterprises to eat crabs.

In fact, before the implementation of Shanghai ’s “Implementation Measures for the Pilot Work of Foreign-Invested Equity Investment Enterprises in the City” (hereinafter referred to as the “Measures”), Carlyle Group, Blackstone, Softbank China, TPG, NYPC Kabe Fund and other foreign PEs All are rushing to set up RMB funds to prepare for the first batch of QFLP pilots.

On August 17, 2009, First Oriental registered a wholly-owned subsidiary in Shanghai Pudong New Area.

Subsequently, Lyon Securities and Guosheng Group announced that they will jointly establish an asset management company and jointly establish a 10 billion PE fund. They will also register the company in Shanghai Pudong.

On February 24, 2010, Carlyle and Fosun initiated the establishment of a joint-venture partnership equity investment enterprise jointly invested and managed by the two parties, with 50% of each funded by both parties. The size of the first phase of the RMB fund is US $ 100 million, funded by Carlyle Asia Growth Fund (CAGP) and Fosun.

However, in the first batch of pilot enterprises, there was no figure of Guosheng Lyon. Now Guosheng Lyon is very likely to catch the second batch of express trains and have longed for it.

According to statistics, as of March 18, 2011, Shanghai has established a total of 53 foreign equity investment enterprises and equity investment management enterprises; two of them are foreign equity investment enterprises (total investment of 140 million US dollars), and another 51 foreign equity investment Manage the enterprise.

Four factors for evaluation

It is reported that the main factors considered by the Shanghai QFLP pilot enterprise review are as follows: 1. The investment experience of the fund management team in China, especially the experience of successful exit; 2. Priority is given to the participation of domestic capital such as guidance funds, state-owned enterprises or private enterprises. Enterprises; 3. Priority is given to enterprises whose investment direction is emerging industries and the direction is in line with the experience of the management team; 4. The enterprise's organizational structure is clear, the funding body is clear, the investment plan is clear, and the governance structure and profit distribution mechanism are market-oriented.

Fang Xinghai said that the QFLP pilot review needs to be treated with caution. "When approving the QFLP pilot, we will find at least three major partners of the applicant company to talk. In addition to understanding the basic situation of the company, we will also talk to determine whether these partners are really doing things. Once they fail the assessment , We will not approve the pilot. "

Attorney Wang Yong of Hankun Law Firm participated in the Shanghai QFLP pilot policy interpretation meeting. Wang Yong confirmed that in addition to choosing large-scale merger and acquisition funds, the approval department also hopes to introduce funds for high-growth SMEs that invest in technology, entrepreneurship, and employment.

Hu Zuliu, founder, chairman and chief executive officer of Chunhua Capital, also said: "Chinese companies want long-term development still rely on Chinese local investment institutions, especially Chinese LPs. But the current situation is whether it is a local GP or LP is very immature. The introduction of QFLP has a positive significance for the development and growth of China's private equity industry. "

$ 3 billion is just a rumor

Previously, the market was rumored that Beijing and Shanghai would receive a USD 3 billion exchange quota. As soon as this news came out, controversy continued.

The relevant person in charge of the QFLP audit of the Shanghai Financial Office revealed: "We are not evenly distributed according to the total size, but a family audit. The Financial Office has a special team responsible for scoring foreign PEs. We give foreign currency exchanges based on the score. Quota. It is also possible for excellent companies to obtain a high exchange rate. "

"If the progress of the audit is smooth, the total exchange rate is relatively large, but there is no framework limit of 3 billion US dollars. There are many companies in the queue, the channels are still relatively crowded, and everyone's enthusiasm is very high."

According to rumors, Carlyle Fosun and Blackstone Group each received a US $ 100 million foreign exchange settlement amount. Detong Capital launched an equity investment fund. The specific amount of foreign exchange settlement depends on the fund's fundraising amount.

However, this has not been confirmed by the company. Tian Lixin, Managing Director of Tatung Capital, responded to the inquiry about the amount of foreign exchange with "it is now a sensitive period, it is not convenient to say more".

Carlyle Fosun's first fundraising fund is US $ 100 million. If it obtains the same amount of foreign exchange settlement, it means that the proportion of foreign investment can reach 100%, which also confirms the statement of the relevant officials of the Financial Office that there is no mandatory domestic and foreign investment ratio limit for QFLP pilot companies.

Wang Yong said that after the establishment of the QFLP pilot enterprise was approved, it can be handled directly at the custodian bank by the administrator issuing instructions to the custodial bank, and the foreign exchange settlement and transfer are combined, without the need for the SAFE for each project. Approve the required amount of foreign exchange settlement one by one.

Salaries are higher than the director of the financial office

In preparation for the rapid expansion of equity investment, the Shanghai Financial Office has accelerated recruitment.

It is understood that joining the Shanghai Financial Office requires at least "having more than 5 years of experience in the PE industry", and should be a "manager of middle and high-level enterprises" in the original unit.

If it is absorbed, it will become an appointment civil servant of Shanghai Finance Office. According to reports, the salary and salary of the appointment system civil servants in the equity investment of the Financial Office is higher than that of the director of the Shanghai Financial Office.

The public announcement of the candidates for the appointment of civil servants in the Shanghai Financial Office shows that a qualified person has been hired-Yu Ting, who was hired as a civil servant of the municipal financial office for the management and development of equity investment enterprises. The specific position is "Shanghai Senior Analyst, Local Financial Management Division, New Financial Industry Development Division, Financial Services Office. "

At the beginning of taking office, Yu Ting quickly entered the state. She said: "It is gradually adapting to the work of the financial office. The work is very busy and the tasks are relatively heavy. There are many QFLP-related matters and basically there are meetings every day."

Information shows that Yu Ting graduated with a master's degree from the National University of Singapore and joined the work in July 1998. In 2006, Ting worked as assistant to the chairman of Shanghai Tonghua Investment (Group) Co., Ltd. and is currently the director of equity management of Shanghai Tonghua.

Fang Xinghai said: "Shanghai is building an equity trading center, and we have hired very professional people as the leaders of the equity trading center. From the perspective of management applications, we hope that we can continuously improve the management capabilities of the supervisory layer and let this industry develop steadily . "

"The key to strengthening the management of QFLP is to have sufficient talents as backup resources. The improvement of the system, the daily approval, and the grasp of future development trends require the assistance of professionals. Our appointment civil servants have been approved and approved by the relevant national authorities. stand by."

With the complete staffing, the audit speed of the QFLP pilot is expected to be greatly accelerated, and the system will gradually improve.

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