|
The CDF Phase 5 RMB Fund has completed its first round of fund raising, amounting to $ 3.2 billion on November 8, 2017. As with the 4-phase mezzanine fund, the LP raised this time is still one hundred percent made up of large institutions including large insurers , Joint-stock banks, etc .; the difference is that the financing LP added commercial banks and trust companies.It is reported that the scale of the first round of raising has been the same as the total size of the CDF fund last period, the market is expected to dissect the final fund of 5 The scale will be more than doubled by CDH Fund 4 Fund.  CDH investment mezzanine fund founding partner, managing director Hu Ning 'Significantly speeding up the fund-raising speed, which also fully demonstrates the LP's recognition of CDH Dividend Fund is gradually deepening.' CDH investment mezzanine fund founding partner, managing director Hu Ning in an interview with investment net reporter said. Wu Shangzhi, chairman of CDH Investment, said in a vote to the net that the progress of mezzanine funds reflects the market's demand for such investment products. Wu Shangzhi said: While institutional investors have increased the allocation of PE and VC funds, they also hope to allocate part of their investment to the fund for a relatively short period of time (4-6 years instead of 8-10 Year), the expected return (in double-digit) and the point of cashback when the predictability is relatively high risk protection is relatively strong investment products.May fund is developed to meet the needs of investors. The trend is in line with the general trend of Private Equity after 2008. ' LP is still composed of large commercial banks, trust companies to enter In 2016, CDH Investment raised RMB 3.5 billion in four RMB interim fundraising funds to complete the fund raising target of more than RMB 2 billion, and the fundraising took more than a year. However, the first round of fund raising of Phase 5 Fund was equivalent to the total amount of Phase 4, But it took only seven months. Investment Network reporter was informed that the first round of CDH 5 mezzanine fund LP is still one hundred percent by large institutions, in the view of Jun Ning, CDH mezzanine fund has been able to attract institutional investors sustained attention from many internal and external factors . External factors, the mezzanine fund itself has certain advantages, and these institutions LP asset allocation needs to achieve a high degree of consistency.May fund advantages embodied in: 1. Double sources of revenue, both the cash flow of structured finance distribution, but also equity Of the relatively high yield, which is its most prominent feature; 2. Risk control, mezzanine funds choose to control the wind, the investment is relatively mature enterprises, preferring the leading enterprises, and has a stable cash flow; Income is relatively stable, with CDH Mezzanine Fund as an example, under the premise of investment income can be met, the investment income will be distributed to investors in a certain proportion each year, and the remaining income will be recycled and invested. 'We value the fundamentals of enterprises and the cash flow of enterprises. CDH funds seldom invest those high-valuation but cash-flow-poor or even negatively-profitable companies that do not meet the criteria of risk control for mezzanine funds Request, 'said Junin. On the other hand, through the popularity in recent years, the awareness of mezzanine funds in the organization LP has been continuously improved, has gradually been recognized and accepted after Hu Ning told the investment network reporter said, 'In the past you have to work hard to insurance The company explained what mezzanine funds are doing and what areas they are investing in. Now, from the past, they have to work hard to promote and evolve into many agencies looking for themselves. Junin said that mezzanine investment has always been an important part of the international financial market. The mezzanine funds already account for 25% -50% of the total assets managed by the top agencies such as Blackstone, Carlyle and KKR. China's mezzanine investment funds have sprouted from 2005 and after nearly 10 years of development, foreign investment institutions, global investment banks and domestic professional investment institutions have been active in the market. In addition, the mezzanine fund also ushered in the policy also good .In September 2014, the State Council issued a new insurance ten, the mezzanine fund is clearly defined as investment risk areas.There is this document, the Commission has introduced some details, Mezzanine Fund has since become a layout of the focus of funding. 'We were still in the stage of' missionaries' when we raised 3 funds, and we have to spend a great deal of effort to introduce to the companies what is a mezzanine fund and what a mezzanine fund is, but when the 5th issue is relatively easy, The family has realized the benefits of the fund, LP on the mezzanine fund is not as strange as a few years ago, and even many companies will take the initiative to call us. 'In this regard, Hu Ning very pleased.  CDH investment mezzanine fund team Internal factors, it seems in the eyes of Jun Ning, CDH mezzanine funds from the team, investment logic, or return on investment, investors are attractive enough. CDH Mezzanine Fund was established in 2011. As the first mezzanine fund set up by a private equity investment organization, it currently has 17 professional investors who are well-known among other outstanding institutions such as Ping An Trust, CCB International, Orient Asset, Deutsche Bank Banks and other leading domestic completed a number of well-known investment projects, the entire team has a financial background, as well as strong structural design capabilities. CDH Sandwich Fund now manages a total of 5 RMB funds and 1 US dollar fund As of November 30, 2017, CDIP has a total of 58 investment projects and nearly 60% of the projects have been withdrawn from the project. It is reported that CDH Fund has completed all four investment, which is also raised the reason for the Fund 5. Currently, CDH Fund has withdrawn all funds in advance of a period, the rate of return higher than the market average of 11%. Wu Shangzhi believes that CDH Mezzanine Fund team after six to seven years of hard work, and by virtue of the performance of the previous four funds and run in to improve, the sandwich fund this product in the Chinese market has made gratifying achievements, and got Approved by domestic mainstream institutional investors, CDH Team will grasp this good foundation and pursue the quality of return on investment from investors, strictly control risks, make every investment and return the trust of investors. Platform resource advantages and four investment strategies Hu Ning also stressed that for LP, CDH investment brand trustworthy. Hu Ning said that since the establishment of CDH Investment, it has formed a highly stable, transparent and institutionalized culture, and has formed a unified enterprise culture and investment concept through collaboration among various business sectors. According to the reporter, this time Mezzanine Fund The first round of fund-raising to complete quickly, but also CDI Fund Partners and CDH Mezzanine Fund team co-operation completed. 'CDH investment in the entire platform resources, will have a good fit with the business.' 'Hu Ning said,' CDH mezzanine fund advantage lies in professional, flexible, and can take advantage of CDH investment platform to transport efficient resources. 'Junin said. After 4 funds practice and exploration, Hu Ning said CDH fund investment strategy mainly around the mezzanine, real estate mezzanine investment, special opportunities, mergers and acquisitions mezzanine investment in the four main directions. Enterprise mezzanine investment .This is CDH mezzanine fund in recent years to explore out an investment direction.Discount mezzanine fund observed that when the development of some enterprises mature stage, or the upcoming market, its entrepreneurs often have more holdings of corporate shares Demand, or the acquisition / expansion of business, improve the financing needs of the profit. 'At this time, if the entrepreneur takes the money of traditional PE, the financing cost is actually relatively high, which will result in the dilution of its equity. However, the mezzanine method can solve this problem well,' said Hu Ning. Mezzanine often through the mezzanine features of the program design, financing for this business or entrepreneurs, access to 'fixed + floating' investment income. An example is the CDI Sandwich Team invested in an international school in December 2016. The international school is going to list its shares in Hong Kong stock. The investment in CDH Investment is divided into two parts, some of which are used to provide the company with structured finance , Another part of the funds for the proposed listing of the controlling shareholder of the issuance of exchangeable bonds. Real estate mezzanine investment real estate because of its collateral security and high income characteristics of the past has always been a mezzanine investment risk and return preferences of assets in this regard, CDH mezzanine funds have many practices, however, in the overall real estate industry Trend of stable environment, Jun Ning said CDH Mezzanine Fund's choice of real estate projects more cautious. 'On the one hand, with the increase of land costs and the increase of restrictions, many developers have shifted from traditional land acquisition development strategies to mergers and acquisitions. Recently, we have had more cooperation with developers in project mergers and acquisitions. On the other hand, urban renewal, The risk of shantytow to transform such projects is not great, it is encouraged by the national policy, but its income is relatively high, so, CDH interlayer in this area has done a lot of layout. '' Hu Ning said. Special Opportunities Investment .A special opportunity, including non-performing assets, is an investment direction for CDH Fund to think and explore in the current economic environment. US counter-cyclical investment in the oak asset thinking, the economic downturn instead of holding the market blind spot, accurate bet, access to excellent market returns. CDH Mezzanine that is drawing on this investment strategy from 2016 layout Special chance Hu Ning said that on the one hand, the price of non-performing assets has enough safety cushion; on the other hand, with the strong execution ability of CDH Mezzanine Fund and CDH Investment Platform, the Company can reorganize enterprises, make investment in crisis, reorganization of bad projects and Disposal of the project to release the potential value of the project, to obtain excess returns, but also involved in non-performing asset securitization (NPAS), ABS and other low-risk medium-income category of investment. In the past typical cases, for example, in August 2016, CDH Sandwich team 100% stake in SPV held by a medium-sized developers and shareholders loans issued to help them located in the central location of Guangzhou, a non-performing assets The project was revitalized and re-sold, and all parties in the cooperation achieved good returns and social effects. Merger and acquisition of mezzanine investment mergers and acquisitions in the mezzanine investment is the main investment direction of foreign mezzanine funds, but also the focus of future CDH mezzanine funds due to the size of the transaction is usually relatively large mergers and acquisitions, the acquirer will inevitably use the 'priority + mezzanine + times Level 'capital structure, so that different risk appetite funds into mergers and acquisitions transactions in order to maximize the return on investment, which, M & A class mezzanine investment is a very important part. In addition to the above four major investment strategies, Hu Ning stressed that when the mezzanine fund is invested, it must be designed to exit the path, which is the basic point.And for the choice of industry, CDH Melaleuca Fund is concerned about the education, health care, consumer, emerging manufacturing Anti-cyclical, and stable cash flow generation industries. "In the current environment, we will insist on finding leading enterprises and establish long-term cooperation with quality partners," said Hu Ning. For example, the domestic large-scale beef suppliers, domestic pharmaceutical CMO leading enterprises, the leading domestic product line of vaccines and single Anti-business and top-ranking private education groups in China. The leading security monitoring service providers based on SVAC standards, the world's leading PV module manufacturers, large-scale chemical logistics companies in Asia, and the top three private universities in Southwest China, etc. 'In an uncertain environment, we will pursue the utmost certainty by binding it to good businesses and entrepreneurs,' concludes Junin.
|
