Research On Private Equity Fund 's Participation In A - Share Private Placement Strategy And Product Design

The private placement has gradually become the main way of financing of A-share listed companies from 2006, and brought great benefits to investors in the past few years. Therefore, more and more private funds began to participate in private placement market, and gradually become the main role of private placement market. Although private placement has brought great benefits in the past few years, but not all projects are profitable, the difference is very big between projects, loss exists at any time, risks should not be underestimated. For the private fund managers, through some stock selection strategy and the realization of corresponding private fund product, try to select good private placement project in order to get higher and more stable yields, while bringing great benefits to investors, they are therefore able to expand assets under management, to get stable and generous management fees, which has the very realistic significance.Firstly,805 A-share listed companies which have implemented private placement from 2006 to 2014 and circulated before June 30,2015 were selected as the research object in this paper selected, participation in private placement projects compared with the CSI 300 can get excess returns was proved by significant test. Therefore it was recommended that private fund may actively participate in the private placement. Next, this paper draws lessons from the research results of domestic and foreign experts, and according to the author’s practical experience, from the theoretical analysis, assumed that the project of the acquisition of assets should be given priority selection, the project of the large shareholders (including the related shareholders) participating in should be given priority selection, the high discount rate should be adhered to, the project of small-scale company should be given priority selection, the project should be participated when the book value of the CSI 300 Index is low. To this end, multiple regression model was established in this paper, and empirical research was used with data from 2006 to December 31,2011, it was found that here are four factors, the regression analysis showed that the size of the company, the book value of CSI 300 index, the discount rate, additional proportion,have a more significant impact. So the quantitative stock selection strategy of this paper is:(1), the book value of the CSI 300 index should be less than 2.54 when participating; (2), the discount rate of the project should be higher than 0.21; (3), the issuance proportion of the project should be higher than 0.13; (4), the size of the company’s natural logarithm of the project should be less than 3.17. Meanwhile sample data from January 1,2012 to June 30,2013 was used to inspect the stock selection criteria in this paper, the results show that the stock selection criteria is effective. Then again, on the basis of summarizing the advantages and disadvantages of the four major categories of private funds in the private placement market in the paper, the product structure of private placement project pool in which private fund managers participating in private placement projects by advancing payment in the form of enhanced capital first and then raises funds to replace the payment of the private fund management was proposed. Finally, with the above criteria and product structure, the performance of private fund participating in the private placement projects was simulated from the June 30,2013 to June 30,2014, the results showed that the private fund with above stock selecting strategy and product structure product significantly outperformed CSI 300 index.