Management talent needed
A lack of professional PE managers is one obstacle to the sector's development, Huang noted.
In mature developed markets, it takes about seven years to cultivate a managing director of such a firm, and even longer for a partner. But in China, many PE managers just hope to make a huge fortune overnight when the sector is booming and then turn to other industries when the market slows down, said Huang.
Salaries in the sector have also been driven to a record high level because of the limited number of experienced managers. "The basic salary plus bonuses for a senior PE manager in the insurance sector could reach as high as 10 million yuan ($1.6 million) a year," a source was quoted as saying by Securities Daily last August.
As a professor of finance, Huang said that few of his students would be competent enough to be PE fund managers after they graduate from university, due to their lack of working experience.
"It is possible that more professional people from various other industries rather than only from financial areas will step into the PE sector in the future. That would be good for PE firms' management, since these people would be more familiar with the industrial sectors they invest in," Huang noted.
Sina Microblog
Tencent Microblog
Feedback
RSS
