My Age of Investment

   Chapter 845

  "Invest 400 million U.S. dollars, accounting for one-third of the stock, and the post-investment valuation is 1.2 billion U.S. dollars. Boss, this job can be done!"

In the office on the 49th floor of the International Finance Tower II, Li Yaozu kept looking through the documents in his hand and said: “Mr. Xia, although there are policy controls in the Mainland now, the urbanization process is far from over. Years."

  Xia Jingxing did not answer. He was holding a tea cup, standing in front of the floor-to-ceiling windows, looking at the magnificent and beautiful skyline of Central on Hong Kong Island, and reminiscing about the small cage houses everywhere. This is the real social folding of Hong Kong Island.

  He suddenly turned his head and asked: "Yaozu, do you people from Hong Kong Island particularly like real estate?"

Li Yaozu laughed dryly, "I can't say that I like it. House prices have risen over the past few decades, and they have become what they are today. Except for those real estate families, few people really like property speculation. Even the middle class with an annual salary of one million will provide good supply. It’s very tiring to work in the ordered building."

  Xia Jingxing nodded, walked back to his seat and sat down, and asked: "Have you finished reading the terms and conditions of the three institutions for Hengtai?"

   "It's finished, it's really dark!"

  Li Yaozu gently put the document down and leaned back in his chair and said: “In addition to the issued preferred stocks requiring Hengtai to pay an annual dividend of 5%, it also involves gambling.

  If Hengtai is listed before 2008, the minimum return rate for investors calculated based on the listed issue price is 30%; after that, the minimum return rate will increase by 10% for every six months postponed listing.

  If the above-mentioned minimum rate of return is not reached, Hengtai’s major shareholder Xu Tingyin needs to transfer a certain number of Hengtai shares to investors to ensure that investors get the lowest return.

  If we invest in Hengtai, the minimum rate of return can be set a little lower, or the dividend distribution requirement can be cancelled.

  I think the reason why Xu Tingyin told us the conditions of Temasek and their three companies is to hope that we can offer better conditions. "

  Xia Jingxing nodded slightly, investment institutions are not open shantangs, through these terms they have issued to Xu Tingyin, you can get a glimpse of the leopards, even if it is a quasi-listed company without the right to speak, it still has to let the capital slaughter.

   "Do you see the second one?" Xia Jingxing asked.

   "Look, the three institutions have promised to provide a structured secured loan financing of about US$500 million for Hengtai's surprise performance before its listing.

  However, 1/3 of the loans must be repaid immediately after listing, and the remaining loans should be paid off within 15 months after listing.

  Interest or the rate of return is really black, 19%, usury!

  However, as long as Hengtai can be successfully listed and the market value is several times higher than the current value, then it will be a big profit for everyone! "

  Xia Jingxing said: “We don’t have investment banking or commercial banking business. It is difficult to provide or match such a large loan to Hengtai. Although the interest is high, our equity investment business makes no less than this.”

  In the morning, he chatted with Xu Tingyin for a few hours, but there was no result.

Seeing that the potential benefactor's father is about to run away, Xu Tingyin finally confessed and gave him the terms of Temasek, Merrill Lynch, and Deutsche Bank.

  After seeing these terms, Xia Jingxing found it difficult to do it.

   "Yes, 400 million plus 500 million is 900 million U.S. dollars."

  Li Yaozu sighed, “This is a large sum for Envision Capital. We can’t take this list alone.”

   "I didn't want to take this list either."

  Xia Jingxing shook his head: "We are not that kind of large financial institution. With 900 million US dollars, it is enough to do a lot of things, and we can't just smash it on Hengtai."

  Li Yaozu frowned and said, “Mr. Xia, I have something to say, I don’t know whether to say it or not.”

   "Speak!"

  Li Yaozu said: “Blackstone is the world’s largest independent alternative asset management institution and also provides FA financial consulting services.

  Their alternative asset management businesses include corporate private equity funds, real estate opportunity funds, hedge funds of funds, senior debt funds, proprietary hedge funds and closed-end mutual funds, etc.

  But their core businesses are private equity and real estate. These two types of funds are also the largest in raising scale.

  Blackstone's current asset management scale is close to 100 billion U.S. dollars, and we have only broken through tens of billions of dollars.

  Compared with Blackstone, we are short of the lack of fund types.

  If we want to catch up with or even surpass Blackstone, we have to improve some details of the product line.

  For example, when we encountered the Hengtai project, we were completely blinded, and the scale of the case was too big.

The scale of VC funds is not enough. Hedge funds generally only invest in the secondary market. PE funds have not yet been established on a large scale. Even if PE funds are established, the scale is sufficient, but we have to meet the requirements of financiers and also have a debt Fund. "

  Xia Jingxing thought carefully and admitted that Li Yaozu had some truth in what he said. The product line of Vision Capital is indeed very complete, but compared to some giants, it is still not refined enough.

   "What you said is correct, but we can't set up a real estate and a debt fund specifically for Hengtai.

  In fact, we, Blackstone and KKR have their own characteristics, and we cannot be exactly the same as them.

  Blackstone’s trump card is real estate funds, KKR is the king of leveraged buyouts, and our specialty is VC and hedge funds. "

   "VC...is our characteristic?"

  Li Yaozu hesitated. If hedge funds are a feature of Vision Capital, he believes.

  Ke VC, Huiyuan Juice, which was listed today, was actually invested by Liqiu Fund, which can be regarded as a "minority equity investment" in PE funds.

  Strictly speaking, Envision Capital’s VC fund IPO exit case is still zero egg.

  Xia Jingxing knew what Li Yaozu was hesitating, and said with a smile: “Hedge funds are effective, good funds and bad funds can be seen in one year, while VC takes ten years, at least five or six years.”

  Li Yaozu nodded. After all, it is an early stage investment. It takes time for the start-ups to grow.

  Xia Jingxing smiled and said, “So, don’t worry about those now. We are not China’s Blackstone or KKR, but the world’s vision capital.”

  Li Yaozu smiled, “It’s me who took the picture. Indeed, those who learn from me live, and those who look like me die! You should not imitate other institutions, but should learn from their ideas-to build a trump card business."

  Xia Jingxing smiled slightly, Li Yaozu was still very capable of comprehension and understood his true meaning.

It is impossible to have a comprehensive investment institution, and his insight is also a general trend. For example, engaging in VC and hedge funds has advantages. For other investment behaviors such as leveraged buyouts that are more difficult to operate, you must consider the true ability of the team. Up.

  However, he is not afraid of challenges. Sooner or later, he will have to try one, or he will meet the ceiling in the future.

  "But, Mr. Xia, I suggest that we better set up a real estate and a debt fund. China Land has a 10-year dividend period, and foreign investors cannot make all this money.

  Look, if we don’t invest in Hengtai, Temasek, Merrill Lynch and Deutsche Bank will invest.

  Part of the money that ordinary people paid for buying a house went to the local yamen where the land was sold, and part of it was made by real estate developers.

  A large part of the profit earned by real estate developers has been earned by foreign investment institutions. After penetration, the profitable LPs are foreign sovereign wealth funds, universities and pension funds, retirement funds, and so on. "

  Xia Jingxing smiled, "Our LP is not that group of people yet."

   "That's not necessarily true!"

  Xia Jingxing reacted immediately and asked: "You mean to raise funds from domestic LPs."

   "Yes!"

  Li Yaozu smiled and said: "I have studied the company's LP composition, but I don't know the part of VC funds. Hedge funds and PE funds are all American investors."

  Xia Jingxing smiled and said nothing. VC was all his own money, and few people knew the truth. The PE fund was only released some time ago and gave some soup to American investors to drink.

  Li Yaozu continued: "Look, Envision Capital spans China and the United States. We have no reason not to raise funds from Chinese LPs, especially domestic companies such as Hengtai, which can be invested with domestic funds."

  It’s not that Xia Jingxing didn’t think about it, and smiled bitterly: “Domestic development is still relatively slow, and university endowments are not enough to spend, so how can it be used for financial management.”

  He remembers that in his previous life, the domestic university endowment fund became an LP. It should be ten years later, and he was the first to eat crabs among the two universities in Qingbei, and other universities had no money.

  Drought death due to drought, and flood death due to waterlogging.

  "I know that domestic universities have no money, but what about the social security fund?" Li Yaozu asked.

   "Last year the magic capital...you understand." Xia Jingxing shook his head, "At this juncture, you asked me to raise funds, do you think it's tough?"

  Li Yaozu also watched the news on weekdays. Thinking of this big event, and knowing how serious the situation was, he suddenly stopped speaking.

   "Oh, I almost forgot, Mr. Xia, CIC will soon be listed and established, our own sovereign wealth fund in China."

  Xia Jingxing sighed. Blackstone is about to IPO. CIC’s first order was invested in Blackstone. It purchased about 10% of the shares for 3 billion US dollars. The lock-up period is four years. It does not get a seat on the board of directors and does not enjoy voting rights.

  Then there is the subprime mortgage crisis.

  In more than a year, this investment lost 2.5 billion U.S. dollars, and was cursed by netizens.

  After waiting for seven years, CIC has made up hundreds of millions of dollars in the middle of the warehouse, which is considered to have diluted the holding cost and barely solved the set.

   During this period, several big bosses and founding shareholders of Blackstone cashed out billions of dollars and made a lot of money.

At the same time, Blackstone also broke a series of scandals. For example, the US$3 billion in China Bet and most of the funds raised by the IPO were used to purchase the business in the hands of partners. The company's major shareholders and management have used the IPO to transfer and transfer benefits. Traces.

  This is the same as that some time ago, Envision Capital used the newly raised S fund to purchase the Liqiu No. 2 fund shares.

  It’s just that Envision Capital has no public shareholders, and he has not encroached on the interests of minority shareholders.

  Who threaded this list? The surname is Leung, the treasurer of Hong Kong Island, and he also married the wife of a star athlete.

After retiring from public office, Treasury Liang assumed the chairmanship of Blackstone Greater China. The first thing he did was to promote China's investment in Blackstone. It took only 3 weeks to finalize the US$3 billion, and he was absolutely worthy of the salary and bonus that Blackstone offered him.

  With the asylum of CIC, Blackstone entered the Chinese market smoothly, buying the Magic City office building, building a Shouguang logistics park, setting up a RMB fund in Mainland China, and joining hands with New Hope to acquire Australia’s largest chicken farm...

  In the most severe three years of the financial crisis, Blackstone was losing money everywhere. Only the business invested in the Chinese market was extremely strong, and nearly 100% of the performance return was obtained.

  Thinking of this, Xia Jingxing felt that he could try to change it.

  The investment level of the fund of funds is not good, you can invest in Vision Capital! We can do it!

   "You are right, maybe we can try to communicate with CIC."

  Li Yaozu nodded, "Yes, it is better to let my country's sovereign wealth fund make money instead of foreign capital. After all, all the money needs to go into the national treasury. This is one of them.

  Secondly, we can also deepen our relationship with Yamen.

  Third, we also have a small part of the money we make by increasing the scale of asset management. "

  Xia Jingxing looked at Li Yaozu with admiration, and said, "Your suggestion is very good. If you have good ideas in the future, you can put forward more."

   "Oh, yes, I will give you another task to investigate the housing market and local property companies on Hong Kong Island."

  Li Yaozu didn't ask much, but he responded with a smile.

  (End of this chapter)