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The “Three-year Dream” of a 10-Billion-level Private Equity

2024-07-29

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From 88 to 88. In the blink of an eye, the number of private equity firms with a scale of tens of billions of yuan has returned to the level three years ago.

According to statistics from Private Equity Ranking Network, as of July 25, the number of private equity firms with a scale of over 10 billion yuan has dropped to 88, a decrease of nearly 30 from the peak in 2022, and has returned to the level of three years ago. At the same time, a reporter from Shanghai Securities News learned from an interview that the scale of some private equity firms with a scale of over 10 billion yuan has now been "halved" and the number of employees has also been greatly reduced.

Some people say that the calmness of the numbers is a kind of irony, and that private equity seems to have made little progress in the past three years, like a dream. But in the eyes of more people, this is a growth and transformation, allowing more and more managers to see clearly what kind of private equity institutions with tens of billions of dollars in assets are needed in the asset management industry. As a result, since the beginning of this year, many leading private equity managers have changed - their mentality has changed from greed to awe, their investment vision has shifted from "track" to global market, and their management style has changed from "small workshop" to "large institution".

In the words of industry insiders, for the top private equity firms, the market over the past three years has been a "test" and the correct answers are professionalism, compliance, teamwork and awe. As more and more private equity managers give the right answers, the industry will eventually gain the trust of investors, and the top echelon is expected to expand again. (Shanghai Securities News)