In May, the first anniversary of the implementation of the new rules for private placement registration, the industry accelerated the reshuffle. With the sharp rise of the registration threshold of private equity managers, the number of private placement completed for the record has dropped sharply.

In the year since the new rules were implemented, a total of 214 private placements have been registered, down more than 80 per cent from 1315 the previous year, according to CICC. It is worth noting that since May, only one new private placement has been registered in Shanghai Hongyuan. With the threshold tightened, private placement has officially entered the "stock" era, with the total number of managers shrinking by 3500 from the high point.

At the same time, the number of managers cancelled in the past year has been increasing, and a large number of risk institutions have been withdrawn, reflecting the further strengthening of the regulatory orientation of "supporting the good and limiting the inferior", the increasing concentration of the industry, and many small and medium-sized institutions will continue to be eliminated.

On the first anniversary of the new rules, the number of private placement filings has dropped sharply to 200.

On May 1, 2023, the measures for Registration and filing of Private Investment funds came into effect, which clearly defines the principles of registration and registration standards for managers, and requires that the paid-in capital of private equity managers should not be less than 10 million yuan.FreeonlinescratchcardswinrealmoneynodepositusaAt the same time, there are strict requirements for senior executives and shareholders of private equity funds. In the first month of the implementation of the new rules, only two private equity companies completed their registration.

In May this year, the first anniversary of the implementation of the new rules for private placement was officially completed. On the whole, the implementation effect of the new rules for private placement filing is remarkable, with the raising of the threshold for entry, the number of private placement completed for filing has dropped sharply.

In the year since the new rules were implemented, from May 1, 2023 to May 1, 2024, a total of 214 private placements have been registered, down more than 80 per cent from 1315 in the previous year, according to CICC. Among them, private equity and venture capital managers registered the largest number, reaching 144; private equity investment fund managers registered 68, and 2 other private equity managers.

It is worth noting that since May, only one new private placement has been registered in Shanghai Hongyuan, a private equity fund manager with a registered capital of 10 million yuan, and the actual controller is Zhang Kaicheng. He once worked in the world-renowned quantitative hedge fund Two Sigma, worked in the Investment Department, and served as quantitative portfolio strategist and vice president.

Judging from the number of filings in the past few years, basically every year, more than 1000 private placements have completed registration and entered the private equity management industry. In the first year after the new rules, the number dropped sharply to more than 200, marking the official beginning of the "stock era" of the private equity industry.

According to the reporter's understanding, after the new rules, it is significantly more difficult for private placement registration to pass, and many private equity managers have made twists and turns in the process of filing.

Yu Weiquan, a senior partner at Beijing Kangda (Guangzhou) Law firm, said that the difficulty of private placement filing is mainly because the new rules are particularly stringent for executives, which are required to meet the investment performance of managing products as fund managers for more than two consecutive years in five years. For example, from a practical point of view, securities private placement must require five years of experience in private equity, public offering, futures or asset management to serve as the real controller, and it is very difficult for the experience of the securities firm to act as the real controller.

At the same time, in terms of performance, the scale standard managed by the last company is about 50 million yuan, which is less than 50 million yuan and 5 years experience, the probability of filing is lower, and the filing standard is more stringent as a whole. In addition, in the case of IPO tightening, the new equity private placement also suffered a certain impact.

"Yan Jinqiang retreat", the stock of managers has shrunk by 3500.

It is worth noting that with the regulatory guidance of "supporting the superior and limiting the inferior" further strengthened, and maintaining the trend of "strict advance and strong retreat", the number of private equity managers is showing a downward trend.

In February 2022, the stock of private equity fund managers reached 24683, an all-time high. Since then, the number of private equity managers has continued to decline. As of the end of March, the number of private equity managers was 21098, down 3583 from its peak. Among them, there are 8328 private equity fund managers, 12526 private equity and venture capital managers, 9 private equity asset allocation managers and other private equity managers.

In addition, the number of managers written off has been increasing over the past year, and a large number of risk institutions have been withdrawn. In 2023, the association cancelled a total of 2537 private placements. Since May this year, the Association has cancelled a total of 164 private placements, of which 26, 36 and 102 have been cancelled by the Association, voluntarily and without management for 12 months, respectively.

On May 11, the association cancelled 96 private offerings for the first time under the pretext of "12 months without management", and the association's website was updated accordingly. The logout type has added "12-month unmanaged logout". During the year, the association cancelled 806 private placements, of which 494, 200 and 10 were cancelled by the association, voluntarily and according to the announcement, respectively.

Zhu Jimi, general manager of Jixi (Shanghai) Management Consulting Co., Ltd., pointed out that since 2022, the access of private equity fund managers has changed from rapid development and dynamic balance to the direction of outbound than inward. On the one hand, by rearranging and issuing the relevant requirements for the registration of private equity fund managers, we will greatly raise the entry threshold from the aspects of the company's capital strength, shareholder qualification and senior management experience, and pay more attention to the ability of professional investment and research; on the other hand, gradually out of the private equity fund managers who do not have sustainable operating capacity, or there are major irregularities in the institutions, to support high-quality institutions with good investment and operating ability.

In the era of "stock", the Matthew effect continues to appear.

After the private placement enters the "stock" era, the concentration of the industry will continue to improve, the Matthew effect will continue to appear, and many small and medium-sized institutions will continue to be eliminated.

According to Wind, only 780 private equity funds completed registration in February, a record low; in October last year, 821 private equity funds were registered, less than 1000 for the first time; and in March, a total of 858 funds were registered, once again fewer than 1000.

In terms of filing scale, in February this year, the scale of newly filed fund products was 283.Freeonlinescratchcardswinrealmoneynodepositusa.54 billion yuan, up from 27.222 billion yuan in October last year. Among them, the new filing scale of private equity funds is only 8.445 billion yuan, less than 10 billion yuan, setting a new record. Looking back on December 2021, at its peak, the size of newly registered private equity funds was as high as 170 billion yuan.

In the context of the new record of the number and scale of private equity fund products, small and medium-sized private placement is almost unable to raise funds, but the head private placement is a large number of fund-raising and record products. For example, Yinfu Investment has put on record 33 products in 2024 and 150 products in 2023; Wenbo Investment has put on record 15 products so far this year and 150 products in 2023.

According to the reporter, since 2023, a large number of private placements have not registered a single product, and the management scale has shown a downward trend. At the same time, the number of liquidations continues to increase. A total of 1413 funds were liquidations in March this year, and a total of 1899 funds were liquidations in December last year.

Data disclosed by the association shows that the top 400 private equity securities institutions currently account for nearly 80% of the industry's management scale, and the bottom 2000 private equity securities institutions account for only about 0.15% of the industry's management scale.

Editor in charge: Wang Yunpeng

Proofread by: Li Lingfeng