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The asset management industry is once again seeing the trend of “going private”.

According to the official website of the China Securities Investment Fund Association, Shenzhen Ruyuan Private Equity Securities Fund Management Co., Ltd. appeared in the latest published registration list, and the actual controller and general manager of the private equity is Lin Sheng, an investment manager of Zhongtai Securities (Shanghai) Asset Management Co., Ltd. (hereinafter referred to as "Zhongtai Asset Management"). According to his resume, Lin Sheng once served as deputy general manager of the fixed income department of Zhongtai Asset Management.

A reporter from Cailianshe found that in addition to Lin Sheng, in recent years many investment managers, fund managers, and senior executives in the asset management industry have chosen to start their own business and embark on a new journey in their careers.

This has also caused heated discussions in the market, and many industry insiders believe that the establishment of private equity by "investment tycoons" is also affected by the industry's salary cuts. "With the guidance of regulatory policies and changes in the market environment, some financial institutions have begun to optimize their salary mechanisms, which may prompt some professionals to re-plan their careers in order to realize their personal value and professional development in a more flexible and autonomous environment."

Investment managers switch to private equity

According to information disclosed by the China Securities Investment Fund Association, Shenzhen Ruyuan Private Equity Securities Fund Management Co., Ltd. was established on March 20 this year and completed registration on August 16. The paid-in capital and registered capital are both 10 million yuan. The legal representative and actual controller are both Lin Sheng. In addition to Lin Sheng, the executive members also include Yu Haiyang.

In terms of equity structure, Lin Sheng, as the core figure of Shenzhen Ruyuan Private Equity, directly holds 40% of the company's shares, ranking as the largest shareholder. Zhu Yangmo and Zhang Liwei hold 25% and 10% of the shares respectively. In addition, Shenzhen Ruyuan Kunze Enterprise Management Partnership (Limited Partnership) and Shanghai Yushuai Management Consulting Co., Ltd. also hold 15% and 10% of the shares respectively.

According to his resume, Lin Sheng holds a bachelor's degree and a master's degree in economics from Zhejiang University. He has 12 years of experience in bond research and investment industry, and 10 years of experience in bond investment. He has served as deputy general manager, assistant general manager, senior investment manager, and member of the fixed income decision-making committee of Zhongtai Asset Management. He is responsible for the outsourced investment management of multiple banks, with a peak management scale of more than 45 billion. He is responsible for the investment management of the parent company's own funds entrusted convertible bond portfolio; he is responsible for the investment management of the high-yield bond product Red Moon series. He also worked as a macro researcher in the fixed income department and assistant investment manager at Guotai Junan Asset Management.

Wind data shows that Lin Sheng had managed 23 products at Zhongtai Asset Management. The product with the highest return during his tenure was Zhongtai Chiyue No. 6, which reached 158.43%, with an annualized return of 37.27%. In addition, the return of Zhongtai Chiyue No. 102, which he managed, also reached 116.21%, with an annualized return of 36.01%. Overall, the total return during Lin Sheng's tenure was 105.06%, with an annualized return of 10.50%.

Public information shows that Lin Sheng resigned from all products in June last year and left China Tai Asset Management in August of the same year. After resting for half a year, he established Shenzhen Ruyuan Private Equity in March this year to start again.

At the beginning of 2022, Lin Sheng conducted an in-depth analysis and public comments on the development trend of the high-yield bond market. He believes that there is a huge difference between high-yield bond products and normally priced traditional bond products, but investing in high-yield bonds is by no means easy because many phased strategies will become invalid as the market environment changes. Managers need to continuously expand the breadth and depth of their understanding of high-yield bonds and improve and optimize their own investment framework.

At that time, he mentioned, "The high-yield bond market is not short of opportunities. With almost all private real estate bonds joining the high-yield bond market, the market size has rapidly expanded to the trillion level, and the yields of many targets have exceeded 100%. Such a huge, high-yield and highly volatile market is definitely not short of investment opportunities. What is lacking is the vision to explore opportunities and the execution ability to seize opportunities. We will wait and see and respond in time."

They left and set up their own businesses

In today's large asset management industry, in addition to fund managers, some investment managers under securities asset management companies have also left. In addition to Lin Sheng, on August 16 this year, Shanghai Qinghong Private Equity Fund Management Co., Ltd. successfully completed the filing registration. The company is headed by Jiang Dixin, who used to be an investment manager at the asset management headquarters of East Fortune Securities.

It is not uncommon for asset management executives to set up their own businesses. For example, Hangzhou Yuelan Private Equity Fund Management Co., Ltd. was established in December 2022. Gong Xiaoxuan, the legal representative, chairman, general manager and actual controller of Hangzhou Yuelan, has many years of experience in the securities investment industry and has served as an executive in many institutions.

In December last year, Duyuan (Nanjing) Private Equity Fund Management Co., Ltd. completed its registration. Lu Chenglai, the company's legal representative, general manager and major shareholder holding 80% of the shares, has worked in securities companies and public funds for many years and has served as a senior executive in China Oceanwide Fund and Xingzheng Asset Management.

It is common for public fund managers to go private and start their own businesses. Recently, Shenzhen Mingcheng Private Equity Securities Fund Management Co., Ltd. was registered with the China Securities Association. The actual controller and general manager, Lan Qiao, once worked as a fund manager at Bosera Fund.

Also completing registration and filing this month is Shenzhen Yinuo Private Equity Securities Fund Management Co., Ltd., whose legal representative and general manager is Wu Chuanyan, former deputy general manager of Hongde Fund and a well-known fund manager.

Guangdong Tianchen Yuanxin Private Equity Fund Management Co., Ltd. completed the registration of private equity manager last year. The company's legal representative, general manager and investment director Zhang Junsheng also served as deputy director of investment of Ping An Fund and managed several funds including Ping An Dingyue and Ping An Dingtai.

According to public information from the China Securities Association, as of the end of July, there were 20,732 private equity fund managers, managing 1.1505 million funds and a total fund size of 219.69 trillion yuan. Among them, there were 8,186 private equity investment fund managers; 12,300 private equity and venture capital fund managers; 8 private asset allocation fund managers; and 222 other private investment fund managers.

As for the existence of private equity funds, as of the end of July, there were 150,543 existing private equity funds with a total size of 19.69 trillion yuan. Among them, there were 94,216 existing private equity investment funds with a total size of 5.03 trillion yuan; 30,807 existing private equity investment funds with a total size of 10.94 trillion yuan; and 24,510 existing venture capital funds with a total size of 3.30 trillion yuan.