The 10 billion national master fund has opened again.
The investment community - decode LP learned that the National SME development fund Co., Ltd. issued the announcement on the selection of the fourth batch of sub fund management institutions. The fourth batch of sub funds still adopts two forms: new sub funds and joint-stock sub funds. In principle, the subscribed contribution scale of a single sub fund is not less than 300 million yuan, slightly lower than the subscribed scale of the third batch, and the contribution ratio is still not more than 30% of the total scale of the sub fund in principle.
In June 2020, the selection of sub fund management institutions began after the operation entity of the National Development Fund for small and medium-sized enterprises was established. Up to now, the signing and establishment of the first and second batch of sub funds have been completed; In August 2021, the master fund began to recruit the third batch of sub funds and successively completed the signing of two sub funds. Seven months later, the 10 billion national master fund is ready to sell again.
An IR person in charge of raising RMB funds in Shanghai sighed: “after waiting for a long time, there is finally news again.”
At least 18 GP have been invested
The national master fund has shot again
The National SME development fund is the most active national master fund in recent years.
In June 2020, in order to implement the guiding opinions on promoting the healthy development of small and medium-sized enterprises issued by the central office and the State Council and the decision-making and deployment of the State Council, under the leadership of the Ministry of industry and information technology and the Ministry of finance, the central government directly invested and United with many central enterprises, insurance institutions and fund subsidiaries of the United Nations, launched and established the national small and medium-sized enterprise development fund Co., Ltd. in Shanghai on June 22, 2020, which was officially put into operation as the master fund entity, Support the development of small and medium-sized enterprises through investment sub funds and direct investment, with a registered capital of 35.75 billion yuan.
In July of the same year, the National SME development fund Co., Ltd. issued the announcement on the selection of the first batch of sub fund management institutions. According to the application guide, the total subscribed amount of each sub fund shall not be less than 1.5 billion yuan, of which the contribution proportion of the National Development Fund for small and medium-sized enterprises shall not exceed 30% in principle, and the rest shall be raised from the society. After receiving the notice of winning the election, the management organization shall complete the establishment task within 6 months. In principle, the first batch of investment shall be started and implemented within 9 months.
In addition, in terms of investment direction, as a fund for the purpose of supporting the development of small and medium-sized enterprises, the national small and medium-sized enterprise development fund does not have strict industrial and regional requirements, but it is clearly pointed out that the proportion of sub funds invested in growing small and medium-sized enterprises in seed stage and start-up stage shall not be less than 60% of the total investable scale.
As soon as the announcement was made, the major front-line VC / PE in China poured in, and a total of 181 management institutions submitted application materials. In the following months, the National Development Fund for small and medium-sized enterprises quickly promoted many procedures, such as reviewing materials, organizing on-site defense, reverse due diligence and so on. Finally, the eight reporting institutions broke out of the siege and became the first batch of sub funds to be cooperative management institutions.
It is reported that the total scale of these eight sub funds is 18.963 billion yuan, the registered place covers the eastern, central and western regions, and the investment direction covers new generation information technology, high-end equipment manufacturing, new energy and new materials, biomedicine, energy conservation and environmental protection, as well as great health and consumption upgrading, modern service industry, education, culture, agriculture and other fields.
At the end of 2021, the second batch of 8 sub funds of the master fund were successfully completed, including:
“In the next step, our company will give better play to the leading role of national funds, increase investment in small and medium-sized enterprises, and support small and medium-sized enterprises to take the development path of ‘specialization and innovation’.” The National SME development fund Co., Ltd. disclosed the selection direction of the third batch of sub funds in the announcement.
By 2022, the signing and establishment of the third batch of sub funds of the National Development Fund for small and medium-sized enterprises will begin.
In January, the signing of the first sub fund of the third batch was completed. The name of the fund is: Jingwei (Xiamen) investment partnership (limited partnership) of small and medium-sized enterprise development fund, registered in Xiamen, Fujian, and the management organization is Jingwei China;
In February, LanChi (Chongqing) private equity investment partnership (limited partnership), the second sub fund of the third batch of small and medium-sized enterprise development fund, signed and landed, and the corresponding management organization is LanChi venture capital.
The national small and medium-sized enterprise development fund, which holds a lot of money, has once again brought fresh water to the venture capital market. At present, what adjustments have been made to the recruitment policy of the national master fund for small and medium-sized enterprises?
Compared with the selection announcement of the first three batches of sub funds, the establishment scale of the fourth batch of sub funds has been relaxed. The application guide points out that the total subscribed capital contribution of a single sub fund shall not be less than 1 billion yuan in principle, of which the proportion of our contribution shall not exceed 30% in principle, and the rest shall be raised from the society. In addition, the subscribed capital contribution of the master fund has been reduced from no less than 500 million yuan to 300 million yuan.
In terms of investment management ability, the fourth batch of sub fund management institutions or core members have strong investment management ability. The cumulative actual management of fund products with the same nature as the sub fund is not less than 3, and the cumulative management scale is not less than 1.5 billion yuan (subject to the record of the Foundation). The expression of “early investment” and “medium-term investment” refers to the investment of small and medium-sized enterprises, which is the same as the investment of small and medium-sized enterprises.
How can VC / PE get the money?
So, how can VC / PE win the favor of this national master fund?
Almost all the winning GP have the same feeling that this is a very market-oriented master fund. “All processes are open and transparent, and the majority of venture capital institutions are selected on the basis of merit.” Shi Anping, chief partner and chairman of Zhongguo capital, once told the investment community.
The normal process is as follows: first, interested management institutions can submit applications in accordance with the public application guidelines, the application materials are reviewed by the expert review committee, and those who meet the requirements will reply on site; Secondly, the institutions that passed the on-site defense accepted the reverse due diligence of the National SME development fund. According to the reverse due diligence, the investment decision-making committee made investment decisions and issued the investment commitment letter to the selected management institution according to the procedures.
In fact, behind the selection of each wheel fund is the scene of competition among major investment institutions.
According to the declaration guidelines, after receiving the notice of winning the election, the management institution shall complete the establishment task within 6 months. In principle, the first batch of investment shall be started and implemented within 9 months. This standard seems simple, but in fact it is strict. In view of this, Huaying capital founding management partnership