Ten Years Of "Going To The Sea": Yuanhe'S Innovation And Restraint

At the end of the year and the beginning of the year, it is the usual season for the second round.

For the PE organization Yuanhe Chongyuan, this time point is a bit more profound: the first decade after the marketization of the team, the investment of the No. 2 fund was closed.

A lot has happened in a decade. Yuanhe Holdings has grown from a local state-owned investment operation platform to a well-known practitioner in the local equity investment industry; Yuanhe Zhongyuan is not only a pathfinder of the marketization of Yuanhe holding sub platform, but also its experience can be used for reference by some local state-owned funds in the market-oriented reform.

The subtext of the second fund's resumption is that the preparation of the third fund is on the way.

In January this year, 21st century economic reporter interviewed Meng Aimin, executive partner of Yuanhe Chongyuan, and Li weiqi, partner of Yuanhe Chongyuan. They recalled the 10 years of marketization of Yuanhe Chongyuan and looked forward to the No.3 fund raising to be launched in a few months.

Innovation and restraint

Looking back on the history of the past 10 years, the team's decision-making at the key time points includes both the initiative innovation before the big wave, and the persistence and restraint in the process of soaring.

On innovation, his team launched a 1.5 billion yuan "No.1 M & a" fund with China Merchants Bank in 2015. It is precisely because of the large amount of money in hand that Yuanhe Chongyuan, who takes the high-quality line, can take a large position in meituan's reviews and privatize fenpan 360.

The A-side of the high-quality line is able to cultivate deeply in the field of concern and build an ecosystem in the key track. The B side of this choice is that when facing large projects, it is inevitable that there is insufficient spare power.

In response, the team launched a number of special funds and invested heavily in xuchuang technology, youkede and other projects. This move not only solved the bottleneck of "ammunition", but also let the team see the broad space for science and technology investment.

When the new phase of the RMB fund is launched in 2018, yuanhechongyuan told the potential investors of the fund that the team planned to invest all the ammunition in the field of science and technology.

How difficult was the decision?

Looking at the market, at that time, the new asset management regulations had been implemented, and all the partners of RMB funds were facing the torture of "where does the water come from?".

How good the past investment performance and the number of star projects in the past are directly related to whether investors invest or not. At that time, Yuanhe stressed that Yuan Mingming held the representative projects such as meituan review and Tongcheng tourism.

However, when the external fund-raising environment tends to be bad, Yuanhe Chongyuan still made a "difficult and correct" decision. At that time, in addition to the plan focusing on "abci" in the PPT, Yuanhe Zhongyuan used to convince the investors that they had worked together for many years, the investment portfolio in the field of science and technology, and the natural project library of Yuanhe system.

Although it was difficult for fund-2 to raise funds under the market environment at that time, the market was rewarding Yuanhe Zhongyuan for his bravery. By the end of 2020, the management scale of Yuanhe Chongyuan is nearly 8 billion yuan, with more than 65 project investment, and more than 20 listed companies have been cultivated, including seven listed companies on the science and technology innovation board.

The boundary of science and technology investment

At the weekly team meeting in mid January, one of the topics was to discuss the investment strategy of the new fund.

"We need to think about the strategy and tactics of the next fund. When you do this, you keep asking yourself, "what was your original intention?" Li Weiqi is one of the first new team members to join after the market-oriented transformation of Yuanhe Chongyuan. Like many female investors who have made outstanding achievements in the industry, she behaves heroically and speaks cleanly.

Our newspaper has previously reported yuanhechongyuan's "abci (artificial intelligence, big data, cloud computing and Internet of things)" investment strategy, and the formation of investment and industrial collaboration strategy with brother funds and invested enterprises in these fields.

Specifically, on the one hand, Yuanhe Chongyuan emphasizes research first, and each member of the investment team has his own field of long-term attention and in-depth research. On the other hand, the team is required to deeply mine the invested projects, and then extend the investment in the upstream and downstream industrial chain of the invested enterprises.

In terms of investment style, Yuanhe Chongyuan has always been an institution willing to bet and dare to make heavy bets. When "No.1 M & a" fund was invested in meituan reviews with the upper limit of the fund's single investment, No.2 fund had taken the 200 million yuan share in the pre IPO Financing of qi'anxin.

As No.2 fund enters the closing period of investment, Yuanhe Chongyuan's "abci strategy" has been preliminarily verified, and the team has formed a base in the fields of network security, logistics technology, cloud computing and optoelectronics.

"Science and technology also needs to be further subdivided. What we invest in is" technology + data "driven. Big logic must be the value of data generation and data reconstruction. " Li Weiqi believes that the pan TMT field is large enough, as long as the project is done thoroughly, it can create sustained, stable and excess returns for fund investors.

"Half step" in capital market

In the local private equity market, the boundary between PE and VC is blurring. The "big VC" project in the eyes of VC and the "small PE" project in the mouth of PE may be the same. The differentiation of the secondary market also makes PE / VC investors eager to try and even pull their sleeves to enter the market.

The reporter learned that Yuanhe Chongyuan not only took a half step forward in the investment stage of the primary market, but also took another half step in testing the water to the secondary market.

"You just asked if we will consider extending to the primary and secondary markets." Meng Aimin revealed that this is also the team's discussion, "as long as the track we focus on is good, as long as it has a long-term growth trend, why not do it?"

In the equity investment market in 2020, everyone is talking about shuffling. Some people say "19", others say "28".

When the industry changes again, it is the time of opportunity. When the new decade opened, Yao Hua set a goal for the team to enter the first investment echelon in the data field.

In fact, in the past 10 years, yuanhechongyuan has not only benefited from the rapid growth of emerging enterprises in many fields, but also enjoyed the dividend of capital market reform.

One of the core reasons why Yao Hua and Meng Aimin took over the important task of marketization in those years was that the capital market of the growth enterprise market opened up.

For the Yuanhe Chongyuan team led by them, the PE gene is written in the bone and blood. Of course, the team also knows that only change is permanent in the world.

The 21st century economic report reporter learned that Yuanhe Chongyuan's partner team has been emphasizing internally from the middle of 2019 that it should focus on the industry and look at opportunities through the primary and secondary markets through the thinking of the primary and secondary markets.