My Age of Investment

  Chapter 726 King of PE

  A few days later.

  Vision Capital Silicon Valley Office.

  Led by Liu Xiaoduo, Abel knocked on the door and walked into a luxuriously decorated independent office.

  Looking at the boss who was sitting in the chair quietly reading the documents, Abel respectfully said: “Dylan, I’m very sorry, but I was delayed for a day due to temporary problems, which made it too late to return to the United States.”

  Xia Jingxing raised his head and nodded on the sofa opposite the desk, "Sit down."

   Then he said to Liu Xiaoduo who was about to leave: "Go and pour a cup of coffee."

   Liu Xiaoduo nodded and left quickly.

  Xia Jingxing got up, walked towards the sofa, looked at Abel who had not yet sat down, and waved, "Sit down, what happened to Hong Kong?"

  Wait for Xia Jingxing to sit down first, then Abel sat down and said with a smile: “It’s okay. I was introduced by a friend and talked with someone from Huiyuan Juice Group.”

  Abel currently controls two funds, the Fund of Funds Office and the PE Fund Begins. Most of his working hours are in Hong Kong.

  Xia Jingxing was not surprised. Envision Capital has already gained a certain reputation in the mainland and in Hong Kong. It is normal to come into contact with projects such as Huiyuan Juice.

  Furthermore, Huiyuan Juice has been in development for more than ten years now, and it has become very famous. It should be on the market soon, and ordinary small households can't afford it.

   "How did you feel after the contact?" Xia Jingxing asked.

   "Chaotic, quite chaotic!"

   Abel explained: "What I mean by chaos here is that the management is chaotic and the atmosphere of the family business is too strong."

  Xia Jingxing smiled faintly, Abel still had some eyesight, and he saw the company’s problems at a glance.

  "Then do you think it is necessary to invest a sum?" Xia Jingxing deliberately tested Abel, and looked at the latter with a smile.

   "This should be the last round of financing before Huiyuan Juice goes public. At the end of this year or early next year, this company will be listed on the Hong Kong Stock Exchange."

   Abel paused, and said: "My opinion is to invest a lump sum, but the holding time should not be too long, just one or two years, just as a Pre-IPO arbitrage.

  In the long run, the company's backward management model will definitely not adapt to the increasingly competitive beverage industry. "

  Xia Jingxing nodded. Huiyuan Juice declined within a few years after it went public. First, it failed to sell to Coca-Cola amidst strong opposition, and then the management made mistakes in decision-making, and a family of national beverages completely slipped into the abyss of debt.

  He had been suspended before he was reborn and was about to delist.

The reason behind this is that the first generation of private entrepreneurs is behind the times in terms of structure, vision, and methods. Zhu Xinli is only the first to fall. In the future, real estate, home appliances and other industries that are currently booming will have more development dividends. Entrepreneurs are abandoned by the times.

  Commercial competition is like this, it is like sailing against the current.

   "Okay, since you think it's good, then make a fortune!"

  Xia Jingxing thought for a while, and then asked: “Pre-IPO financing is a piece of fat, and PE funds with eye-catching eyes are staring at this business. How did you get online with Huiyuan Juice?”

  Pre-IPO refers to an investment in a company that is expected to be listed and has mature listing conditions to help the company go public. Investment companies generally have good profitability and scale. The way to withdraw is to sell the shares held by the company directly on the stock market after listing.

  Because there is a lot of room for premium in the primary and secondary markets, new stocks will have a daily limit as soon as they are listed, so there is a lot of room for arbitrage, especially for A-shares.

  But this kind of opportunity, quasi-listed companies will only give to those who have the ability to help them go public, such as fund founders who have worked in units that supervise listings.

  Retail investors don’t think about it, they can only play and make new ones.

  Abel briefly explained to the boss. In recent years, he has made friends in Hong Kong and is kind to others. Then a broker recommended Huiyuan Juice to him.

  Of course, they only got a small part of the investment share, and the French Danone and Warburg Pincus have gained the bulk of the investment.

   With such an explanation, Xia Jingxing immediately understood, but just followed by a sip of the soup, but it was not their turn to eat the meat.

Seeing Xia Jingxing's sudden silence, Abel thought that the boss was not happy, so he advised him: "Dalun, don't care too much. After all, our fund is temporarily small, unknown in the world, and there are no well-known cases. "

  Xia Jingxing's expression is weird, he glanced at Abel, he didn't mean it!

  But Abel’s words are also right.

  Currently, Vision Capital, VC funds and hedge funds are all flying together, and the one that draws the most is the PE fund.

  Don’t say that compared with the industry ceilings of Blackstone and KKR, even many ordinary PE funds can’t compare.

  In the financial industry, the quality of funds is measured by looking at the case and the rate of return. However, their PE fund did almost nothing, so they bought Android and invested in Ari.

   Ten years later, you may become famous because of these two investments, but it is not working right now. The fund is almost an empty shell.

  This is no good!

  Xia Jingxingxin said that he is a man who aspires to become the king of PE.

  The ceiling of the upper limit of asset management of VC funds and hedge funds is obvious. In fact, PE funds are the real asset management giants, and they exist in the financial field.

According to the data at the time of his rebirth, Blackstone's asset management scale is as high as 600 billion US dollars, KKR also has more than 200 billion US dollars, VC king Sequoia Capital has only a few billion US dollars, and the king of hedge funds Bridge Water Fund is more than 100 billion US dollars. None of the big hedge funds have reached the scale of 100 billion U.S. dollars in asset management.

  Through these, we can see the gap between various funds. Because PE funds involve leveraged buyouts, they often make global sensational acquisitions, and their industrial influence is stronger.

  While VC funds and hedge funds only engage in minority equity investments and stock and financial derivatives trading in the primary and secondary markets, their influence is always quite different.

  Xia Jingxing glanced at Abel, he appointed the party to work in Hong Kong, gave it to the office, but did not give money.

  To engage in large-scale acquisitions, the money that needs to be spent is not a small number.

  His original intention was to develop VC funds and hedge funds first, and then pull out the slow-growing PE funds after earning money.

  It is not that he does not plan to develop PE funds, but pays attention to the order of priority.

  According to his current asset size, it is not a good choice to go for a PE fund.

  Thinking of this, he felt it necessary to talk to Abel about his dreams, lest the other party think that he does not value PE funds.

   "Duck neck, do you think I don't take you seriously?"

  Abel shook his head repeatedly, "Absolutely not! Our first PE fund was as high as 800 million US dollars. It is already a very good fund in the industry, and this is just the beginning.

  Wait when our return on investment gradually manifests itself, I believe that the size and development prospects of the fund will definitely take a new step.

  Of course, our fund invests nearly 90% of the funds in Ari’s project, uh... uh..."

  Abel considered the language and thought that he had found the most suitable term, and then said: "The position is still a bit heavier, which may affect the timing of our performance."

  Xia Jingxing smiled. The work he assigned to Abel was daily work. It was his duty to manage the fund of funds and the PE fund, which had almost emptied the bullet.

  Of course, he also gave Abel a certain investment authority, not much, only 800 million US dollars to invest the remaining 3.4 million US dollars.

  Abel was very cautious. After aiming for a full year, he was finally ready to pull the trigger.

  If this is a good investment, it may be the first project for Liqiu Fund to exit and see a return.

  From this, it can be seen that Abel is also a fund manager who has ideas and is not willing to lie flat.

  After guessing this, Xia Jingxing replied with a smile: "Not only you, many people in the company, but also many friends around me, have seriously underestimated my determination to make the PE fund bigger and stronger."

  Abel laughed with him, but did not answer.

  Xia Jingxing sighed, “Many friends around me have persuaded me that I have made so much money and I can’t spend it all my life. Why not do something that benefits the country and the people, such as investing in the chip industry.”

   Abel's eyes rolled, "Investing in chips in China? To the level of the rise of the industry?"

Then he shook his head, "The foundation is too bad. From upstream semiconductor materials and equipment, to the three key links of midstream design, manufacturing, and packaging and testing, to downstream applications including consumer electronics, automobiles, communications, etc., all have to be laid out. Just work.

  To play such a big game of chess, it's not that I look down on you, the boss, maybe you have to bet on your entire net worth.

  And you can't withdraw halfway. Once you withdraw, all the previous investments will be in vain.

  This cultivation process will be painful and difficult, and it will last for at least ten years.

  Furthermore, now Western countries have been carrying out technological blockades on China. If you want to invest in the chip industry in China, the difficulty is not ordinary.

  With this time, is it not good to invest in technology companies such as Ali, Baidu, Google, and Tesla? "

  Xia Jingxing nodded slightly, "It is indeed very difficult, but if it succeeds, the benefits will also be huge."

   "Okay, let's not talk about this, let's talk about the second phase of the PE fund!"

  Abel's eyes widened, "Second period?"

"Correct!"

  Xia Jingxing smiled, "The second phase fund, a real leveraged buyout fund."

  Abel was overjoyed at once. This was really a shotgun change. He was almost suffocated this year, and his daily life was as ordinary as water and seriously lacking stimulation.

  At the beginning, he chose to join Vision Capital, a startup company, and he also had ambitions to make a big business.

  Now listening to the boss’s tone, are you finally going to vigorously develop their PE fund?

  The more Abel thought about it, the more excited he became, and his hands trembled a little.

  He clenched his fists vigorously, thinking that he must seize this good opportunity to perform.

  (End of this chapter)