Private equity funds, 10 years of locking!Can you buy it?

Now 10 years of ultra -long lock -up period

The design of private equity product caused discussions

China Fund reporter Liu Ming

Recently, a private placement Beijing Jiuyang Runquan Capital recorded a 10 -year lock -up product, and it was not allowed to be redeemed during the period; the ultra -long lock -up period caused market discussions. Earlier in 2020, Beijing Gray Assets established a 15 -year lock -up product, and Hanhe Capital established 6 years of lock -up products. The lock -up period of private equity products is good or short, and private equity and three institutions have different views.

There are also private equity establishment 10 years of ultra -long lock -up products

In July this year, Jiuyang Runquan Capital filed a 10 -year private equity fund product. The product designed a 10 -year share lock -up period, and investors cannot be redeemed during the lock -up period. After Gray's 15 -year ultra -long lock -up period and the 6 -year lock -up period of Han and Capital, private equity is now super long -term lock -up products.

For the establishment of a 10 -year ultra -long -term lock -up product, Hu Juncheng, chairman of Jiuyang Runquan, said that first of all, in response to the proportion of value investment and long -term investment initiatives jointly released by the Shanghai Stock Exchange, asset management institutions, colleges and universities, etc. The valuation location has already had a good margin of security. In the next 10 years, the Shanghai Index will rise.

Not only Jiuyang Runquan, Gray Assets set up a longer -term 15 -year lock -up product at the end of September 2020, and has now operated for almost 2 years. Zhang Kexing, chairman of Gray Assets, said that at that time, the design of this product was mainly customized by old customers. At present, the product is running normally and maintaining a high offensive position. Although this adjustment has also experienced a certain retracement, the current net worth is also restored, and customers Those who are firm for a long time, have a good mentality and have little impact.

However, after the 15 -year lock -up product was issued, Gray's assets are mainly 5 years in the past two years. Zhang Kexing said that the most issued products in the past two years are still 5 -year lock -up products, and most investors can accept the lock -up period of 3 or 5 years. Zhang Kexing believes that the essence of investment is to share the long -term growth of excellent enterprises. Only holding a long time can we make a lot of money. Although there will be fluctuations in the short term, most of the benefits will also be eaten, and the profit and loss will be the same.

For the 3-5 years of lock -up products, Zhang Kexing also gave investors some suggestions that several types of investors were not suitable for buying. Zhang Kexing said that for our fund products, do n’t buy it if you want to make fast money, do n’t buy it for more than 3 years, do n’t buy money at any time, do n’t buy money loans.

Industry insiders: beyond the lock -up period is good for investment

But it ’s troublesome to buy the wrong customer

Although the ultra -long lock -up period, from the perspective of the investment end, it is helpful for long -term value investment; from the perspective of customer perspective, the liquidity of the ultra -long lock -up period is relatively insufficient. There are not many investors who can accept currently. Therefore, in the market, the current lock-up product of private equity is still mainly based on 3-5 years.

Hu Juncheng said that at present, Runquan's 10 -year investors are mostly the company's old customers and recognize the company's investment philosophy. The purpose of investment is more for strategic asset allocation, following the major direction of domestic assets to equity funds from physical assets to equity funds. There are currently 9 investors who are reserved, and some investors have been paying for purchase one after another.

Zhang Kexing also said that the company's first 15 -year -old super long -term lock -up product established in the industry in 2020 has created a precedent for China and even the world fund management industry. At present, the high -length lock -up product, although it can not become mainstream or even a very niche product in the short term, the acceptance of slowly customers is increasing, and the size of the product will rise.

The Jinxi Investment Research Center also said that the number of customers who can accept private equity products for more than 10 years, the number is still very small. Most of the investors who can accept ultra -long lock -up private equity products are old customers with value investment concepts and recognize the investment concepts and operation methods of issuing institutions. In the current market environment, these investors account for relatively small investors.

Many institutions believe that long -locking is conducive to better investment in value investment, but investors lose their liquidity during the lock -up period. The Jinxi Investment Research Center said that the ultra -long -term lock -up product means that my country's private equity industry has gradually entered the "deep water zone" of rational development. In the past, most of the products were locked for only 3 years. But the three years are still too short to cross the complete bull and bear cycle. The ultra -long lock -up product is very rational whether it is issued or investors.

Wen Zhifei, Director of Investment Ratings of Oriental Marathon, said that long -lock -up products can bring greater strategic space to managers, especially for value -based stock strategies. The longer the time, the more obvious the compound profit effect; It will lose liquidity.

According to US -Hong Kong Capital, from the perspective of performance, products that are locked for 3 years will perform better than products without lock -up periods, and products that are not locked. Once when the market has a large fluctuation, customers' confidence is easy to shake, and often the customer’s confidence is easy to shake. There will be a "low -cut meat" situation.

However, investors when buying ultra -long lock -up products not only exist in liquidity, but also face the possibility of rapid error correction once they buy the wrong product. In the previous high -level lock -up products, investors' satisfaction of investor satisfaction The degree is not high, which also damages investors' confidence in the lock -up period.

Liu Zelong, a researcher at the Good Buy Fund Research Center, believes that from the perspective of probability, 10-15 years belong to the ultra-long lock-up period. Long-cycle products have proposed some basic assumptions (such as the company's stability and the attitude and ability of the fund manager). Very high demands, under this premise, it is difficult to evaluate its own pros and cons. The US -Hong Kong Capital also believes that the ultra -long -lock -up product is good for investment, but most customers on the market cannot accept it, which will reduce the fault tolerance rate of customers. A private equity person in Shanghai, in the first half of last year and before, many large channels selling heads of heads of heads are products with long -term lock -up periods. But to be honest, the overall performance is not very good, resulting in investors' confidence in three -year products. Most of the customers who can accept the products of the lock -ups are relatively mature, but they may regret it in the middle. The performance of the lock -up period is below the water, which is also related to the time of issuance. For example, the products issued in the second half of the year and last year were miserable.

Private Equity Positive Director Director Locked Products

Equity investment is more suitable for long cycle holding

China Fund reporter Wu Jun

In recent years, the lock -up products in the private equity industry have gradually become popular. Well -known private equity products such as Jinglin Assets, Gao Yi Assets, Hanhe Capital, and Yuan Le Sheng Assets have issued 3 years or 6 years of lock -up periods. This year, Jiuyang Runquan also Capital launches products with a lock -up period of 10 years. Private equity stated that equity investment is a relatively suitable investment variety for long -term. The setting period is conducive to private equity investment layout, rather than short -term games, and also allows customers to obtain a good return on long -term holding. Other lock -up products have different settings in terms of management fees and performance remuneration thresholds, making it easier for customers to accept. Private equity is optimistic about long -term opportunities in the capital market.

Private equity active issuance chief lock -up products

Do value investment instead of short -term games

"We have issued products that have been locked in the past few years. Those who have one, two, and three years have been in the past few years. It is mainly a long strategy of stocks. This has something to do with the market environment. It is also related to private equity. In 2021, a lot of private equity on the market has issued a large number of private equity products, especially in the three -year period. "Said a private equity of 10 billion yuan in Shanghai.

Hanhe Capital said that the company's 6 -year -lock -up product was released in 2020, all of which are stock long strategies. Since its establishment, the company has always adhered to ultra -long -term value investment. The long -lock -up product is matched with the investment concept of Hanhe, which also helps them to ignore short -term fluctuations. This makes investment decisions.

The US -Hong Kong Capital told reporters that the company's products are currently closed, and the main product closed period is 3 years. It is mainly a stock polyline strategy to find companies that can surpass the average speed in the future to grow in the future. The value is underestimated to buy, and the value is reasonable and overestimated.

Wen Zhifei, Director of Investment Ratings of the Oriental Marathon, said that the company focuses on stock multi -strategies. Generally, the issued products have a share locking period. The share of the first raised and subsequent purchase is required to be locked. 3 years.

Director of a large private equity market in Shanghai believes that the mainstream product on the market is about 3 years, and it is short for 1 year. It is 5 years or even 8 years long. From the perspective of product design, in order to encourage customers to choose more for a long time, there will be a certain tilt in rates, such as lower management fees, or higher performance fees for the threshold. "At present, the domestic capital market is approaching towards the international mature market. The situation of superimposed internal and external situations is changing, and short -term fluctuations will become larger and larger. From this perspective, products with longer and closed periods are more appropriate, at least it can leapfrog it. A cycle reflects the real stock selection ability of the manager, not a short -term game. From the perspective of supervision, it also advocates long -term investment concepts all year round, so this will be a trend. "

Xia Fan, vice president of Snowball, said that the current market strategy products on the market are relatively common. Usually, the lock -up period is 2 years or 3 years. The main reason for the reason: First, the net value of the stock strategy product fluctuates greater fluctuations with the market. From the perspective of historical data, the probability of long -term investment share acquisition is significantly increased; the second is that the manager invested in the medium and long -term investment target, which requires a period of performance to achieve performance. During the redeem period, the frequent flow of fund shares has a greater impact on this type of value investment; the third is that the share lock -up period is supplemented by centralized raising. Managers can make full use of the time attributes of funds to achieve better investment results. Therefore, private equity managers with a medium -to -long -term growth value are more willing to set up products with long -term lock -up periods.

Liu Zelong, a researcher at the Good Buy Fund Research Center, said that most of the private equity products have no closed period, and the common closed setting time is June-December, mainly in stock multi-strategy.

Equity investment is suitable for long cycle holding

Management fees, performance remunerations, etc.

Regarding the reasons for the lock -up product of private equity, the Golden Ax Investment Research Center believes that first, value investment is based on digging the internal value of excellent enterprises as the main investment means, and the growth of enterprises requires time. Compound profit income; Second, compared with the US stock market, the Chinese stock market is more likely to have short -term invalid, soaring and plunge. Investors may not be able to get excellent private equity products. By setting a reasonable closed period, it can prevent investors' impulse to apply for redemption and redemption. , Carry it until the rain.

Xia Fan analyzed that there are many benefits for setting up the share of the share: First of all, for investors, the winning rate of investment can be increased. Although the long lock -up period is sacrificed, it avoids the behavior of chasing up and killing, passively increases the holding time, and can more fully obtain long -term investment returns and improve the possibility of profit. Secondly, the setting of the shareholding period allows the private equity manager to avoid short -term redemption pressure, which is more conducive to the use of long -term perspective for investment and exert its investment capabilities. "At present, most private equity products on the market are locked for one year, and some of them are within three years, and there are a few private equity lock -up periods for more than five years. In terms of expenses, some over -long or even ten years of ultra -long share lock -up product Some fixed costs may be reduced, but products within the three -year period usually do not have much difference in costs. "Liu Zelong said that long -closed products are conducive to lengthening the long -term investment period, and the system guarantees the stability of the fund manager strategy. On the other hand, it reduces the difficulty of fund liquidity management. Long -closed products generally establish a threshold in extracting performance compensation, such as 4%, which is also compensation for customer liquidity. Some managers will cancel management costs in long -closed product design.

Many private equity is considered from the perspective of investment. Hanhe Capital said that among many investment products, equity investment is a relatively suitable long -term investment variety, because each investment is equivalent to purchasing a part of the ownership of a listed enterprise. During the development of enterprises, the internal and external environment will inevitably fluctuate, and the realization of corporate value is not a matter of overnight. The changes in many factors may have a certain impact on the short -term trend of the stock price. "So we believe that the capital attributes for investment in equity assets also need to match the attributes of the equity investment itself. At the product design level, we adopt the principal setting period of the lock -up period, and the asset value -added part is not provided with the lock -up period. That is, during the lock -up period, if there is an appreciation of assets, investors can choose to redeem every day, and it may be that the investor may have a certain liquidity needs during the long lock period. "

According to US -Hong Kong Capital, the closing period of the product is mainly designed according to the investment style, strategy and past performance of the investment manager. The original intention is centered on the customer. Rate. "Inside us, the past performance of different investment managers, the calculation of rolling yields for 1 year, 2 years, 3 years, and 5 years, and finally reflecting the investment manager more suitable for several years of products. Since the public performance, there have been almost 3 years in a rolling roll for 3 years, and most of them have brought good return on investment for investors for 3 years. The subscription fee, purchase fee, and redemption fee are only charged management fees and performance remuneration according to the industry standards, which is easier to understand and accept for customers. "

Wen Zhifei also said that the consideration of the lock -up period is mainly based on the degree of strategy. According to statistics on the performance of the past, the longer the company's combination time, the more the winning index is. The market has caused a large fluctuations, and it is easy to impact the confidence of investors. Therefore, it is necessary to comprehensively consider the investment strategy, holding experience and holding period (liquidity). "In principle, for products with a longer lock -up period, the rate of rates will be reduced, but due to the long -term characteristics, managers and investors will benefit; secondly, considering the liquidity needs of the holder, We will also pay attention to the timely dividends, and return the investor's principal back to the dividend, and the rest of the profit will run, so that the experience of the holder will be better, and it will also help us to create better benefits. "

Hu Juncheng, chairman of Jiuyang Runquan, said that long -lock -up products do not charge subscribing fees and redemption fees, 1%of management fees, no excess performance remuneration for less than 10%, 20%of the excess revenue for more than 10%; Investing 5 million, in terms of rates, allowing investors to share long bonus.

The previous described tens of billions of private equity frankly said that "mainly want to guide investors to hold for a long time. Our investment style is value investment, long -term high positions, lock customers in it, and can concentrate on investment. For investment Advantages. It is difficult to judge when choosing a short -term market, but if you take stocks from long -term dimensions, you will have a good performance. In addition, private equity 3 -year products generally have a concession, and the performance remuneration will only be provided for more than 5%annually. We will also push the products that are locked in the future. In fact, there will be no particularly large redemption after the closed period. In the end, it still depends on performance. "

How long is it reasonable?

Private equity: Multiple factors should be considered comprehensive

China Fund reporter Ren Ziqing

Recently, there are products with a 10 -year share of private placement, and the topic of long -term and ultra -long -term share lock -up period has once again aroused market attention. So, how long is it reasonable to set up? There are different views on this private placement. However, industry insiders pointed out that the reasonable lock -up period for private equity products should be matched with the investment style, investment strategy, and personal ability of the investment manager. Compared with product elements, the investment capacity of the fund manager is a factor that affects long -term performance.

How long is the lock -up period?

There are different views on private equity

In recent years, many private equity managers have successively issued products with share -lock -up periods. Investors are most concerned about how the overall performance of such products perform? Can I get higher excess returns? In this regard, Liu Zelong, a researcher at the Good Buy Fund Research Center, said that from the perspective of historical data, the longer the holding time, the higher the possibility of gaining the income, and the results will be more significant. If the statistical deviation is not considered, the product with a share -lock -up period does have a certain excess compared to unlocked products. Liu Zelong pointed out that the ultra -long lock -up period requires that investors have high confidence in core variables such as the stability of the manager's own operation and the fund manager's investment capacity. Tracking to get. In fact, due to the complexity of investment, there is no so -called best lock -up period in itself. Compared with the length of the lock period, choosing an excellent manager is a more important variable for long -term yields.

Xia Fan, vice president of snowball, also believes that the most important factor in investment performance is the fund manager's investment capacity. The impact of product elements is relatively small. Compared with whether the fund with a long share lock -up period is better than the fund -lock -free fund, this has no special correlation. From a data point of view, the appropriate share locking period can increase the investment win rate of investors to a certain extent. Under the premise of holding three years, private equity funds have obtained positive returns most of the time and can win the market benchmark.

However, the private equity views are different for the reasonable setting range of fund products. Xia Fan said that the verification of investment logic in the securities market requires a certain time. Too short share locking period may make some investors unable to wait for logical verification to be redeemed; Change, the investment ideas or strategies of private equity managers may also change greatly. At present, there are no shortage of products with a closed period or share holding period on the snowball shelves. It is represented by the asset management plan of the manager as the manager's asset management plan that is recently raised. Left and right locking period. Therefore, overall, it may be suitable for most investors from the lock -up period of 1 to 3 years.

The US -Hong Kong Capital pointed out that the reasonable lock -up period for private equity products should be matched with the investment style, investment strategy, and personal ability of the investment manager. As far as the US -Hong Kong capital is concerned, through the "rolling yield" calculation method, the lock -up period is the most favorable for customers, so it is more reasonable to launch a 3 -year product.

Zhang Kexing, chairman of Gray Assets, said that the reasonable lock -up period should be at least 3 to 5 years. On the one hand, the time of corporate value is also reported for 2 or three years, so that the undervalued stocks can be fully risen. On the other hand, a bull and bear cycle need to go through at least 3 to 5 years, so that those investors who buy a relatively high position can finally make money. But the actual situation is that most customers to endure time are very limited, usually about 1 year.

Hu Juncheng, chairman of Jiuyang Runquan, pointed out that the lock -up period of private equity products should be determined according to the asset allocation needs of investors, while taking into account the market situation at the same time. Generally speaking, the reasonable lock -up period of private equity products that practice value investment and long -term investment concepts should be about 5 years, because the price regression value takes time, the longer the certainty, the stronger the certainty.

In addition, Wen Zhifei, director of investment risk control of the Oriental Marathon, said that the design purpose of the lock -up period is to achieve a balance between the investment strategy and the liquidity of investors, and it will also be affected by the market environment.

Xia Fan emphasized that the lock -up period is not necessarily better. It is necessary to comprehensively consider the actual investment strategy and investment style of the manager, and conduct a comprehensive assessment of the lock -up period of related products. For example, some fluctuations, the liquidity of the underlying assets, and the strategies of the underlying assets, CTAs, and market neutrality, often the time limit for locking can be significantly shortened to half a year to one year.

Guide investors to establish long -term investment concepts

Set up a long lock -up period or become a future trend

"With the popularization and popularity of long -term investment and value investment concepts, when investors really understand that value investment and long -term investment are through, long -term lock -up products are expected to become an industry trend in the future." Hu Juncheng said.

Hu Juncheng believes that value investment and long -term investment focus on fundamental and long -term returns. Compared with finding opportunities in short -term fluctuations, value investment and long -term investment are expected to obtain continuous generous return, which is conducive to enhancing investors' sense of gain, happiness, satisfaction The sense of security focuses on the value of the enterprise itself, based on the fundamental driving of the enterprise from small to large, from large to strong to earn relatively stable benefits. For fund managers, it can attract more long -term investor customers, avoid changing their investment strategies because of short -term fluctuations in the market, and give full play to the role of institutional investor value discovery and the role of capital market stabilizers.

Zhang Kexing said that the trend of a long share of private equity products is happening, because as investors and managers are becoming increasingly mature, long -lock -up products are in line with the essence of investment. "The probability of making money will naturally increase the probability of making money to buy a house. Most of the 10 -year and 20 -year valuation trend in the history of high ROE companies in history is amazing. Gao ROE means that the company has considerable competitive advantages and Barrier. Adhering to long -termism not only to do a higher success rate of enterprises, but also the probability of successful investment and funds. This is the original intention and original intention of the long -term lock -up product. "He said. Hanhe Capital pointed out that as the demand for residents' wealth configuration is becoming increasingly diversified and the continuous development of China's capital market, more and more long -term investors will be involved, and the demand for long -term lock -up products will increase accordingly to meet The needs of these investors. In recent years, it has been encouraged to enter the market for long -term institutional investors to become an important policy direction in recent years. Long -term stable funds are conducive to better supporting the development of the real economy, and effectively play the role of "stabilizer" and "cockpit stone".

Xia Fan analyzed that there are several layers of meaning behind this market behavior. One is to objectively help investors to achieve "long -term investment" through the share -lock -up product, and then significantly improved at the level of investment win rate. At the same time, "investor returns" It is closer to the "investment income" of the relevant funds; the second is to objectively help investors carry out reasonable planning through the terms of the terms of share locking period, realize the matching of the "investment period" of funds, and avoid the funds from certain speculative mentality. Under the influence, it is involved in the high fluctuations in the market investment; the third is to objectively reduce investors' attention to the short -term fluctuations in the market through the targeting period of the share, and basically eliminate the short -term transactions of investors due to short -term market factors. This has caused investors' sensitivity to short -term fluctuations in the market, reduced the probability of timing errors, and optimized the holding experience of investors.

"With the cancellation of private equity subscription fees and industry assessment gradually evolving from sales to stock, long -lock -up products will get more attention." Liu Zelong said.

According to the US -Hong Kong Capital, as investors become more and more rational, the popularization of stock polyline strategies, product settings lock -up period is the general trend of the industry's future development.

From the perspective of the Jinxi Investment Research Center, the emergence of long -lock -up products is a manifestation of the industry's maturity. With the gradual promotion of value investment concepts, there will be more and more private equity investors who can accept the long -term lock -up period in the future. However, for a long time lock -up, private equity products want to become an industry trend and need to go through some pain periods, such as violent stock disasters or big bear markets. After real golden fire, it proves that its value can be obtained. Let's prove.

Director of a large private equity market in Shanghai said that at present, the domestic capital market is approaching to the international mature market, superimposed in the internal and external situations, and short -term fluctuations will become larger and larger. From this perspective, the longer -lock -up products are more suitable for the current market environment. It can at least span one cycle, reflecting the real stock selection ability of the manager, rather than a short -term game. In addition, from the perspective of supervision, it advocates long -term investment concepts, so this will be a development trend in the future.

However, Wen Zhifei reminded whether to refer to foreign experience, whether the long -lock -up product will become an industry trend in the future, depending on the positioning of investors' capital types and government guidance in the government. For example, a certain tax incentive is given to funding funds, thereby guiding investors to invest in long -term investment. Otherwise, it is difficult for general market funds to achieve a long -term lock -up period.

"Domestic investor education is still in the early stage. If the customer buys a long -lock -up product, they will still pay much attention to net value fluctuations, so the current market will not release such ultra -long -term closed -term products." Ten billion private equity representation.

Edit: Captain

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