Private Capital Seeks New Investment Opportunities: &Nbsp; PE Has Overheating Risk.

"My main job this year is to deal with PE.

1 PE private placement funds have been invested, and 2 direct investment projects are under negotiation.

Mr. Mou, who does commercial real estate business, said he had retired last year. In recent months, he has been taking part in the PE private placement promotion conference and the PE product introduction organized by private banks.

On the other hand, the stock market with uncertain prospects is faced with severe regulation and control of the real estate market.

How will private capital find new investment channels in the era of negative interest rates?

Many entrepreneurs like Mr. Mou put their eyes on the PE private placement fund.

PE investment continues fever

"It is not too much to say that it is a universal PE. At present, the RMB fund in China's private equity market has dominated."

Song Jun, a researcher at Noah wealth management center, told reporters in Nandu.

The recent data can highlight the investment craze of PE. The statistics of the private equity investment report of the first quarter of 2010 showed that in the first quarter of 2010, the new RMB fund raised 41, accounting for 85.4% of the total, which exceeded 1/3 of the 2009 level and exceeded the foreign currency fund for the first time.

Mr. Mou is a private bank customer of three banks. He has participated in more than 5 PE products promotion sessions this year.

Mr. Mou also said that many of his rich friends are interested in PE, but the fish market is mixed and the choice is very cautious.

Less money and fewer projects, PE's overheating risk

Mr. Mu told reporters that the products recommended by banks were relatively stable, "5 years' period, and the annual yield of products was between 15%-25%.

The customer manager told us that the expected rate of return would exceed 25%.

He even endorsed the PE products that were passed by banks.

A private banking customer manager of a joint-stock bank, who does not want to be named, said that with the launch of the gem, high-end customers' enthusiasm for PE has been increasing this year.

"Too much money, but really good quality projects are relatively few.

Compared with the continuous influx of funds, the good PE is far from enough.

Oris, managing partner of A ureos, China fund management company, said that in the first quarter of 2010, the company had already performed less business than it did in 2009.

"This is different from what people expected. Before I said, many companies are raising new funds.

However, the speed of application has slowed down. One of the important reasons is that the operating costs and investment costs of the company are higher than those of the original ones. There are not many real good returns.

A private bank employee said that banks also began to realize the imbalance between supply and demand of equity investments.

CITIC Bank (601998, stock bar) Private Bank launched the first activity of "investor club" in Beijing recently. It is "100 high-quality small and medium enterprises project recommendation". CITIC Bank has selected the "Zhongguancun 30" selected from CITIC 50 and Zhongguancun (000931, stock bar) science and Technology Park, and the "intellectual property 20" and so on.

"It looks like a good project, but it is not so easy to enter the stage of substantive cooperation. We need professional intermediaries to provide services."

Mr. Mou told reporters that opportunities for direct investment can not be met.

Banks prefer the famous PE

"Since last year, the PE yuan fund has gradually increased its number of potential customers through banks. It is generally aimed at high-end personal financial customers." a joint stock bank Guangdong private banking center product consultant told reporters in Nandu that in addition to banks, there are many cooperation between PE and the third party financial institutions and clubs.

"But we are more inclined to some large investment institutions."

The product consultant said.

The product consultant also pointed out that when selecting partners, banks will investigate the compliance, legality, past investment performance, system design, and professionalism of PE, and look for some public assessment results.

"In the end, we usually choose to cooperate with well-known PE."

Song Jun, a researcher at Noah wealth management center, told reporters that the way to select PE is similar. "There is a suitable platform and mechanism to carry out PE business.

For example, in the PE institutions we interviewed, there are parallel relationships among partners in some organizations, some of which are decided by the competent partners.

How to make decisions, how to wind control, whether there is a veto veto, and so on, an efficient PE organization should identify and choose the appropriate mode.

Song Jun told reporters that the key is to see whether PE can build high walls that others can't easily imitate.

This is mainly manifested in the acquisition of resources, the judgment of projects, the integration and utilization of resources in the hands, the expansion and consolidation of connections, and so on.

Finally, we should advocate sunshine and standardized operation.

From the initial project screening, fundraising, investment management to the invested project, and finally to the IPO of the invested enterprise, all the processes are documented, open and pparent.

PE market fish eyes mixed

Mr. Mou also said that many of his rich friends are interested in PE, but the fish market is mixed and the choice is very cautious.

Too much money, but really good quality projects are relatively few.

Compared with the continuous influx of funds, the good PE is far from enough.