Private equity investment homogeneity problem is obvious

Feb 27, 2012, the China banking regulatory commission liu mingkang, former chairman of the "the fourth global PE Beijing BBS", said the current our country VC (venture capital) and PE (private equity) industry fundamentals is healthy, but also has some problems, for example, homogeneity of VC and PE is very prominent, and evidently homogeneity between the PE, the fund stakeholders short-sighted behavior, corporate governance needs to be specification.

In the credit-tightening, indirect financing under the background of more and more difficult, the role of VC and PE is highlighted increasingly, is become one of the main force of China's industrial investment. Statistics show that up to thousands of private equity funds, the whole country at present has been done to raise fund of about $40 billion, and 40 billion yuan, among them, is raising more than $50 billion.

Thought China's VC and PE industry fundamentals is health, Mr Liu points out, mainly based on the three reasons, one is the health industry characteristic in terms of growth fund performance is given priority to, account for more than 60% of raise funds; Second, both of VC and PE, industry coverage is very wide; Three is the VC and PE more normal exit channels.

Although VC and PE industry has developed rapidly, industry begun to take shape, but industry homogeneity phenomenon is very serious.

Liu mingkang believed that the homogeneity of VC and PE, PE business between homogeneity phenomenon is very prominent. On the one hand, angel investment funds in China is not mature, development is not mature, and the VC business is not separation between; Pushing, eager to cash out, on the other hand, makes PE homogeneity.

Liu also pointed out that China's PE do mergers and reorganization of only two funds, while 63% of the world's nearly $2 trillion of PE are to merger and reorganization, the demand over the next decade will become very large.

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