Lianchuang Optoelectronics 300 million yuan subscription two M&A funds expected return rate of 18%

On June 24th, "G20-LED Summit member company" Lianchuang Optoelectronics (600363) announced that it intends to subscribe for the investment share of the Shanghai M&A Fund Equity Investment Partnership (Limited Partnership) with no more than 290 million yuan. The fund plans to raise 3 billion yuan, and the expected internal rate of return is about 18%.

Lianchuang Optoelectronics said that the main function of the M&A fund is to provide funds, resources, program design, talents and other services for the merger and reorganization of industrial groups or listed companies. By investing in M&A funds, listed companies can expand potential investment opportunities for the company in the relevant industry chain, and also lay a good foundation for the future expansion of the listed companies, and rapidly expand and strengthen.

It is worth noting that the volatility of M&A fund investment returns is relatively large. It is necessary to carefully screen each investment target and post-investment management. The target income is not good or the fund's overall income level is greatly reduced. Haitong M&A Capital Management (Shanghai) Co., Ltd. is the general partner and fund manager of the Shanghai M&A Fund. The company is a start-up company, and its team building and business development needs to be improved. Can its operation and management capabilities reach Shanghai M&A Fund? There is uncertainty in the expected planning. In the Chinese capital market, M&A funds are still in the blue ocean. The M&A market is large and developing rapidly. As an emerging product, with the increase and maturity of M&A fund participants, the sustainability of support policies remains questionable.

The announcement also shows that according to the calculation of the income of Haitong M&A capital, the expected internal rate of return of the M&A fund can be about 18%. However, the calculation contains many assumptions, and the actual income level will mainly depend on the capital of the M&A management company and the operational capacity of the project.

Lianchuang Optoelectronics also announced on the same day that it plans to invest 10 million yuan to acquire a 10% stake in Haitong M&A Capital Management (Shanghai) Co., Ltd. held by Yushang United Co., Ltd.

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