My Age of Investment

Leveraged buyout, Leveraged Buyout, referred to as LBO, also known as financing mergers and acquisitions, is a common corporate financial method in the European and American capital circles.

The reason why it is not popular in the domestic capital circle is that its operation is relatively difficult, and ordinary institutions really can't play it.

If it really works, the profits will be huge.

Gao Ling privatized Belle, and just took out a Taobo campaign and re-listed, and recovered the investment cost, and made a net profit of Belle women's shoes worth at least 50 billion.

It took two years, the actual capital was 17 billion, and the syndicated supporting M\u0026A loan was 28 billion, earning more than 50 billion.

Of course, it’s still only a book profit. The leveraged buyout can only be brought to a successful conclusion when Belle women’s shoes are repackaged and launched, and Gao Ling completely withdraws.

But until the eve of Xia Jingxing's rebirth, Gao Ling was still reinventing Belle women's shoes, saying that it was very effective, but the actual financial data had to be disclosed in the IPO to know.

"Let me just say a few points, and you will know the difficulty. First, our domestic financial capital market is not developed. When you do matching M\u0026A loans, it will be very difficult. At most, you will pledge equity and issue junk bonds. Where will you go?" hair?"

Xia Jingxing stared at this beautiful schoolmaster who was about to "leveraged buyout" and compared his second finger, "Secondly, the culture of professional managers in China is not very popular. If you want to privatize a company and re-empower it, Every step of the repackaging and marketing is inseparable from the help of professional managers.

Even when necessary, part of the equity should be transferred to professional managers to enhance their subjective initiative.

Third, to select a good target, it is best to be able to "arbitrage" directly.

Take a look at my big A-shares, which ones have low price-earnings ratios and are still worth seeing? None. No arbitrage! "

With a faint smile on Li Ying's face, she said very calmly: "I didn't say the target is A shares, Hong Kong stocks can also be considered!

In fact, A shares can be passed directly without any consideration. "

It's not that Xia Jingxing didn't have the idea of ​​doing "leveraged mergers and acquisitions" in his heart, but this thing is not something you can leverage if you want. No PE in China dares to touch this thing, except Gao Ling in the future.

It’s okay to win with the bar, but lose with the bar,

I have to pay for my underpants.

Domestic RMB PE funds, such as CITIC, Everbright, Ping An, etc., all do the work of big VCs, that is, invest in unlisted companies and obtain a small share of equity.

This kind of approach is more stable, and the difficulty is not that great, but it is difficult to expand the scale of management, profitability, and influence.

If he had the strength, he would also like to leverage to buy Apple.

Of course, companies that have gone uphill are generally unwilling to sell, and that is another story-hostile takeover.

He is a little confused right now because Hei Chang got to the point. If he wants to become bigger, sooner or later he will develop in the direction of leveraged buyouts.

The reason why Gao Ling suddenly became the largest private equity fund in Asia is that he won the Belle case by a large margin, at least there is a high probability that he will not lose money.

For an investment institution, it has gained a reputation. Sovereign wealth funds, university endowment funds, pension funds, and retirement funds of various countries have donated generously, crying and clamoring to invest. Even if you increase management fees and share ratios, they can’t stop them enthusiasm!

If Vision Capital can make a difference in the field of leveraged buyouts, the brand will be raised to a higher level, and the M\u0026A funds can be opened to the outside world to make money with other people's money.

He is already well-known in the field of venture capital at the moment. It is very simple to raise VC funds, but he has to weigh carefully to raise PE M\u0026A funds.

"Mr. Xia~Mr. Xia~"

Mr. Xia's crisp voices brought Xia Jingxing back to reality from his dream of capital dynasty.

"Oh, what did you just say?"

Xia Jingxing looked at Li Ying with a little doubt in his eyes.

Li Ying smiled, "I said, let's go to the Hong Kong stock market to pick and choose. If there is no suitable one, then we will start with a simple PE fund, invest in mid-to-late-stage projects, and link up with the Jingzhe Fund in the early stage.

Of course, I think the work of stock selection cannot be stopped, and I have to keep an eye on it for a long time.

The market is changing rapidly, and there are so many peers staring at it. If there is a suitable target, if you are slow to start, you will be robbed by others. "

"Didn't you just keep clamoring for a buyout fund?"

Li Ying pursed her lips and smiled, "I'm actually testing you to see if you have any intention of developing in this field. This is very important to me."

"Then what did you find out?"

Xia Jingxing smiled. Although the other party was looking for a job, he had a very equal attitude.

I am interviewing the other party, but the other party is not interviewing myself.

"After testing it out, Envision Capital has the goal and motivation to climb to the top of the mountain."

Xia Jingxing smiled and didn't answer, guessing that it might be because he had been out of his body for too long.

Ordinary managers of institutions, when they hear leveraged buyouts, avoid them like snakes and scorpions, but they still chat with the other party for a long time and ponder for so long.

In fact, Xia Jingxing's guess was not wrong at all.

Just now Li Ying observed Xia Jingxing for a long time. At first she saw Xia Jingxing suddenly lost her mind and was embarrassed to interrupt, but later she observed carefully.

"Okay, I admit that I have this idea, but the current Vision Capital is not suitable for challenging such a difficult operation method. It is because the old birthday star eats arsenic and thinks his life is too long!"

Li Ying only went abroad when she was in her teens, so she could understand allegories, she nodded and said, "You are the boss, you have the final say."

"So, are you willing to join Vision Capital?" Xia Jingxing looked at Li Ying.

"certainly!"

Li Ying stood up, held out her white, tender, smooth and delicate palm to Xia Jingxing again, and shouted with a smile, "Hi, boss!"

Who can stand this!

Xia Jingxing immediately had a sense of déjà vu as if he had entered the footwashing club with Chen Hong.

He also stood up, shook hands with the other party and said with a smile: "You are welcome to join."

After shaking hands, the two sat back on the sofa.

Xia Jingxing began to talk about the issue of remuneration, which was still the old rule, basic salary plus fund bonus.

The basic salary is not low, the annual salary of 500,000 US dollars is higher than the daily salary offered by UT Starcom to Li Ying, but it belongs to the average level in the PE fund industry.

In addition, as a listed company, UT Starcom has option incentives for middle and senior executives.

On the other hand, Vision Capital provided Li Ying with 10 points of fund profit bonus, that is, the fund's net profit multiplied by 20%, then multiplied by 10%, equals 2%.

This treatment, because she is a beautiful woman, does not have any preferential treatment. It is comparable to Tong Shijie from Axel China, and lower than Fu Jixun from Jingzhe Fund.

This is determined by industry experience, reputation, and achievements in the investment circle.

There is no rule without rules, Xia Jingxing will not casually disrupt the salary system he set.

If you have merit, you will rise again, and if you have no merit, you will be swept out.

After listening to Xia Jingxing's salary introduction, Li Ying was not dissatisfied at all. On the contrary, she felt extremely excited that she would be in charge of a 500 million US dollar fund, and her career had once again reached a new level.

The two chatted for almost three hours, and then it was noon.

Chen Hong, who had disappeared all morning, knocked on the door and walked in. As soon as he entered the room, he found Xia Jingxing and Li Ying sitting on the sofa talking and laughing. It was a bit surprising, but not surprising.

"I'm finally done. How are you talking? Let's have dinner together at noon."

Chen Hong found an empty seat on the sofa and sat down, looked at Xia Jingxing, and then at Li Ying.

Li Ying was the first to say: "The talk is over, I am very happy, and I have decided to join Vision Capital."

After finishing speaking, she took a look at Xia Jingxing and smiled like a flower, "I would also like to thank Mr. Xia for his trust in giving me the opportunity to manage such a large-scale fund."

Chen Hong grinned, and looked at the little brother opposite him with deep meaning. What's your position? Don't you think they are young?

Xia Jingxing didn't bother to pay attention to Chen Hong whose eyes were spreading lust, and greeted him, "Let's go, let's go to eat together!"

"good!"

Li Ying answered, lifted her bag, got up, and walked in front.

Xia Jingxing was hugged by Chen Hong who was walking last, and then the latter started to say some nonsense things to smear his innocence.

"Am I that kind of person?" Xia Jingxing whispered.

Chen Hong pursed his mouth, "It's hard to say!"

After finishing speaking, Chen Hong ran away with a smile, and rushed to the front to press the elevator, in exchange for a thank you from Li Ying.

Now it was Xia Jingxing's turn to pout. The big brother who just told himself to be more careful, ended up with this kind of virtue?

"Hey, brother Chen Hong, your house is not far away, so why don't you call your sister-in-law?"

Chen Hong, who was greeting Li Ying to enter the elevator, froze when he heard this sentence.

He felt that Xia Jingxing had really wronged him!

Xia Jingxing met Chen Hong's sad little eyes, smiled and patted each other's shoulder, hugged the reluctant Chen Hong, and entered the elevator together.

Seeing the two men hugging each other into the elevator, Li Ying smiled, moved her steps slightly, and made way for a little space to the side.