My Age of Investment

Chapter 835 The future has a lot to do

"The PE fund is owned by Vision Capital, and the S fund that bought its shares is also owned by Vision Capital. Does this mean that Vision Capital will charge LP twice for management fees and twice for revenue sharing?"

Someone in the audience asked the other guests what they thought. Although the rate of return of Vision Capital is very good, if the fees are too unreasonable, they have to weigh one or two in their hearts.

Xia Jingxing had expected that someone would ask such a question, and replied calmly: "Ari, Facebook, Youtube, and Hainei.com in the PE fund's investment portfolio are all the top and best Internet companies in the world.

Are these high-quality bids available to any investment company? Even Sequoia Capital doesn't have this face.

I can tell you clearly today that Internet companies such as Ahri and Facebook will hardly refinance. Even if you want to invest in them in the future, you can only go to the secondary market to buy stocks.

But at that time, is the valuation still the current valuation?

Ordinary PE funds can be called star funds if they can invest in any company in Facebook, Ali, Youtube, and Hainei.com.

And the S fund we intend to initiate and establish can be called the star of star funds, and each target is carefully selected, which is difficult for ordinary investment institutions to touch.

In the future, we will also consider including Chinese and American high-quality technology companies such as Fuxing Mobile, Tesla, and Tudou into the S Fund's investment portfolio.

If there are two funds for you to choose from, one has a return rate of only 10%, and the return rate is 28%; the other has a return rate of 1000%, and the return rate is 46%.

Which fund will you choose?

Good things are bound to be expensive, and cheap things are naturally not good! You can think about it carefully, is what I said the truth? "

The audience in the audience bowed their heads in deep thought.

Although they bear the name of blue-blooded nobles, most of them can only be called rich, not rich.

Take Facebook, for example, with a valuation of 25 billion US dollars. The latest round of financing is based on 1 billion US dollars, and they simply cannot afford to invest.

Although Xia Jingxing didn't point out this point, everyone present could understand the hint.

If you want to get the opportunity to invest in Facebook, you can only raise funds together and invest in the form of a fund.

As for why Xia Jingxing got an S fund out, they guessed that it was because they wanted to charge more.

After trying to understand all this, many people showed a look of sudden realization.

Immediately someone asked: "Then Darren, what is the specific fee?"

Xia Jingxing replied: "The PE fund has an annual management fee of 2% plus a 20% share of excess income.

S funds have the same fee model. "

Hearing this, everyone immediately began to calculate in their hearts.

This fee model is not 20% + 20% of the two funds of Vision Capital, and 40% of the income is divided, but another set of calculation formulas.

For example, Facebook is currently valued at 25 billion U.S. dollars. S Fund buys PE fund shares according to this valuation. In the future, Facebook will grow to a market value of 100 billion U.S. dollars, and sell it for a profit of 75 billion U.S. dollars.

For this part of the profits, PE funds will share 20% with GPs, and S funds will share 80% as LPs, which is 60 billion US dollars.

This is not over yet. Then, Vision Capital, as the GP of the S Fund, will take 20% of the 60 billion US dollars, and the remaining 48 billion US dollars will belong to the profits of the LPs present.

With a profit of US$75 billion, Vision Capital took away US$27 billion, which is about 36% of the total income.

This does not include the 2% annual management fee, and the share ratio is even higher.

The result must have been calculated, and the faces of many people in the audience kept changing.

They not only want to indirectly hold shares in high-quality companies such as Facebook and Ali, but also feel pained by the high fee ratio.

Now that we have entered 2007, almost no one still thinks that Internet companies are a bunch of bubbles and worthless garbage.

Google’s stock price has quadrupled since its listing, and its market capitalization has exceeded 100 billion U.S. dollars. The institutions that invested in Google before the listing made a lot of money, creating a new investment myth.

It is impossible to say that the people present are not interested in Facebook and think that investing in Facebook will not make money. They just want to make more money.

Someone asked unwillingly: "Dai Lun, the S fund is as high as 3 billion US dollars, should it be possible to directly buy all the underlying equity held by the PE fund?"

Xia Jingxing smiled slightly, he knew that these people were still unwilling to give up, and only wanted to pay the management fee and profit share of a fund.

If he did as the other party said, the PE fund and the S fund would have nothing to do with it. He would never allow this, and the reduction in income would come next.

"Liqiu Fund holds a 20% stake in Facebook, a 20% stake in YouTube, a 20% stake in Ali, and a 20% stake in Hainei. These four companies are valued at US$25 billion, US$6.6 billion, and $10 billion, $1.5 billion."

After reporting a long list of numbers, Xia Jingxing stared at the audience, and said calmly: "The equity of these four companies held by Liqiu Fund is worth 8.62 billion US dollars in total.

How can the $3 billion S fund buy all the shares of these companies? "

The audience in the audience was stunned. They felt that 3 billion US dollars was a lot, and it was considered a very large fund.

Unexpectedly, the Liqiu Fund is more expensive, and the equity of the four companies it holds is worth more than 8 billion US dollars.

Xia Jingxing smiled and said nothing. After asking Andrew for advice, he set up a new fund - Liqiu No. 2.

He transferred part of the equity of the four major companies he held to the name of Liqiu No. 2. The Liqiu Fund just mentioned actually refers to Liqiu No. 2.

If there are other external LPs, then his left-handed and right-handed behavior will be very troublesome, but in fact, Liqiu Fund only has him as an LP, and there is no resistance to adjustment at all.

The reason why the new fund is called Liqiu No. 2 is that Fund No. 1 still holds equity in some important companies, such as Android.

Right now, the android is not yet fully developed, so it needs to be raised a bit before it is released slowly.

Tesla and Fuxing Mobile also have part of their equity in the Liqiu No. 1 Fund. It is too cheap to sell at the moment, and they have not yet grown to the point where they need a "profit-sharing alliance".

In the future, if necessary, S Fund can continue to acquire the shares of the Liqiu No. 1 Fund, which is equivalent to providing the blue-blooded nobles with an opportunity to indirectly invest in companies such as Tesla, Android, and Fuxing Mobile.

Of course, you can also consider setting up a new S fund and changing a group of dignitaries to serve as LPs.

After hearing the huge figure of more than 8 billion US dollars disclosed by Xia Jingxing, the blue-blood nobles were completely speechless. This was blatantly oppressing others and bullying them for having no money.

"Daren, is Facebook's valuation of 25 billion US dollars too high? And the Chinese e-commerce platform you mentioned, Ali, can it reach a valuation of 10 billion US dollars?"

Xia Jingxing looked at the person who asked the question. Instead of getting angry, he smiled and explained patiently: "Facebook is valued at 25 billion US dollars. It's just an example I gave. Goldman Sachs and Morgan Stanley were based on this a few months ago. For those who invest in valuation, this valuation has been recognized and endorsed by the two major investment banks.

In fact, Facebook has developed rapidly, and now it should be more than 25 billion US dollars.

China’s Ari may not be familiar to many of you here, but this company occupies the vast majority of China’s e-commerce market share. Ebay and Amazon’s subsidiaries in China have been defeated by Ari.

As I just mentioned, all transactions will be evaluated by professional investment banks and accountants, and no one will suffer. "

Everyone in the audience looked at me and I looked at you, and found that they couldn't find any questions. No matter what questions they asked, Xia Jingxing could always give a reasonable explanation.

Xia Jingxing took a good look at the situation, saw the situation, and immediately hit the rails while it was hot: "I have introduced so much, I think everyone has enough understanding of the various funds of Vision Capital.

None of the dozen or so funds we manage has lost money.

We cherish feathers very much, and we also cherish LP's trust in us.

This S fund is the largest single fund we have raised, and it carries a lot of expectations from Vision Capital.

We expect this fund to generate the best rate of return and help Vision Capital become a world-class alternative asset management company.

In order to give everyone a basic guarantee, we have also specially formulated a guaranteed rate of return of 10% per year.

Below this figure, S Fund only charges management fees and does not charge any excess income sharing.

For the portion above 10%, we only charge 20% of the excess revenue. "

Hearing this, many people seemed to have taken a reassurance, and felt much more at ease.

With such a high fee, it is impossible not to give them some guarantees and promises, and it is impossible not to give them some guarantees and promises, and no one's money is blown by the wind.

After waiting for a while, seeing that no one asked any more questions, Xia Jingxing said, "Do you have any questions? If there are no questions, today's product introduction meeting is over here, and it's time for entertainment."

No one responded to him, and almost everyone had already made a choice in their hearts.

In less than three years, create a return rate of 51 times;

The development speed and trend are comparable to the attractive equity of Google's Facebook;

10% guaranteed rate of return;

...

Anyone who is not a fool should be able to see that this is an excellent investment opportunity.

In addition, it is worth mentioning that the duration of the S fund is set at ten years, and the investment portfolio is not static and can be adjusted at any time. For example, you can sell shares in Facebook midway and buy shares in Tesla and Android.

These blue-blooded aristocrats have invested so much money in Vision Capital, and indirectly hold the shares of many companies. Their family members, not to mention becoming the spokespersons for the interests of companies such as Vision Capital and Facebook, at least when formulating relevant plans, they have to pay attention to their own interests. When it comes to interests, we have to weigh one or two more.

For example, if Facebook collapses, not to mention all the $3 billion will be wiped out, but at least it will lose more than half of it.

Because the investment portfolio that Xia Jingxing made for the S Fund, the investment in Facebook accounted for as high as 58%. Anyway, these people are most familiar with and like Facebook, so they simply fulfilled their wishes. In fact, Xia Jingxing wished it was so.

No one said a word in the audience, Xia Jingxing said with a smile: "That's it, let's enter the entertainment time, I wish you all a happy and wonderful night."

After finishing speaking, Xia Jingxing quickly walked off the stage.

Blankfein walked towards him with a smile, and complimented him: "Daren, you are really good, the fundraising should be stable."

Not to be outdone, Mack gave Xia Jingxing a thumbs-up and said with a smile, "Dai Lun, it's great, I'm a little moved by what I said."

Xia Jingxing smiled lightly: "If it doesn't violate your internal regulations, you two can come and buy some S fund shares."

Blankfein smiled and shook his head: "Daren, thank you for your kindness, but Goldman Sachs is a shareholder of Facebook and a partner of Vision Capital, so we should try our best to avoid these sensitive actions."

Mack said with a smile: "Darren, in my opinion, these are not important, our partnership is as solid as a rock, and Morgan Stanley will support you as always."

Seeing that the two of them refused to bring the benefits to their door, Xia Jingxing didn't take it seriously, he just mentioned it casually, it doesn't matter whether he accepts it or not, and the two of them are not short of the money.

As long as he continues to bring substantial benefits to the two major investment banks, he will be the strongest partner for the two CEOs.

"Daren, I suddenly want to ask you a question. You don't seem to be short of money. Why do you want to create an S fund?"

Seeing that Xia Jingxing didn't answer, Mack smiled: "You don't mind, I just asked this casually. I mainly want to ask if you need help? If you need help, you can ask it directly."

Blankfein actually wanted to ask about this, to see if there was any new business that could be expanded, but Mack was the first to speak, so he was inconvenient to continue asking, and just watched silently from the sidelines.

Xia Jingxing smiled and shook his head: "Thank you, it's actually nothing wrong, the main reason is that I hold too many shares in Facebook and YouTube, and it will take a long time to cash out after the company goes public.

And I plan to adjust the development strategy of Vision Capital recently, hoping to introduce more diversified funds. "

Mack felt that Xia Jingxing was definitely not telling the truth, but the other party obviously didn't want to talk about this topic, and he was very knowledgeable, so he didn't break the casserole and ask the bottom line.

Xia Jingxing guessed that the old fox must have guessed something, but the other party was very smart and would not take the initiative to tell it. He deliberately came to test himself and wanted him to take the initiative to tell it.

But this matter is very secretive, and it involves many things at the same time, so it is impossible for him to tell all of it without any details.

The two CEOs stayed for a while, then left Xia Jingxing's side, and went to have a reception with the blue-blood nobles to socialize.

Xia Jingxing didn't join in the fun, he planned to think calmly for a while and take stock of his gains and losses.

To be honest, he doesn't want to sell the shares of the Liqiu No. 2 fund right now, more precisely, he doesn't want to sell the shares of Facebook.

Adding Youtube, Hainei.com, and Ali to the S Fund’s investment portfolio is actually a cover-up by him to make the S Fund look more like that.

Otherwise, the S Fund only holds the equity of Facebook, which is like farting when you take off your pants. At the same time, others will question why they don’t sell Facebook’s equity directly.

Like ordinary VC and PE, S funds also pay attention to the diversification of investment risks, and will hold the equity of multiple companies to form an investment portfolio.

The difference is that VC and PE funds directly invest in start-up companies to obtain equity, and S funds buy second-hand equity from VC and PE funds, or buy part or all of the fund shares.

After chatting with Andrew that day, the two of them agreed that Facebook is about to make a full profit, and the fruit is gradually ripening, and it is easy to attract people to covet.

In particular, he personally still holds a total of 49.58% of the shares of Facebook, which is so fat that it is enviable and worthy of a big vote.

The society is too dark, and the fact that a foreign girl is pregnant can easily be taken advantage of by those who want to.

It’s not impossible for the dignitaries to kill Facebook, but it’s very possible to rob him in partnership. The Anglo-Saxons have robber genes in their bones, otherwise how can they be called the Anglo-Saxons?

So, after thinking about it, he decided to narrow down his goal and make his holdings look less attractive.

In fact, the simplest and rude solution is to sell a large number of Facebook shares.

Selling at a valuation of 25 billion U.S. dollars is actually not considered a cheap sale, because Facebook was only valued at 100 billion U.S. dollars when it went public.

And from the moment he founded Facebook, he had the idea of ​​gradually withdrawing from the United States and slowly moving his family property to China.

But he thought of a better way, to create an S fund, so that all the rich and powerful of Yingjiang can get on the bus, and everyone can enjoy the rain and dew, and he doesn't eat alone.

After all, it is not easy to work hard in a foreign country, and there is no support. The British and American opium dealers two hundred years ago actually paid tribute to the officials of the Qing Dynasty, and even set up a special bribery fund.

Qing officials dispatched naval forces to help British and American merchants smuggle opium, and anti-smuggling officials helped distribute opium.

As the saying goes, learn from barbarians to control barbarians!

He felt that he could learn from the methods of the British and American opium dealers, but he did not run a bribery fund, only an S fund.

To be honest, his behavior is far less despicable than that of the British and American opium dealers. He is making money in an upright manner, and he is just protecting his legitimate property from being encroached upon.

However, it is a modern society after all, where information spreads rapidly and there are many eyes staring at it. It is impossible for the blue-blooded nobles to help him like the officials of the Qing Dynasty helped the opium dealers back then.

After S Fund purchased the fund shares of Liqiu No. 2, the LP of Liqiu No. 2 became two, he and S Fund. The LPs behind the S Fund are those blue-blooded nobles.

From a certain level, Liqiu No. 2 is no longer his vest, but has become a normal PE fund.

Excluding the 20% stake held by Liqiu No. 2, his stake in Facebook has dropped to 29.57%, which is not particularly high.

Next, when there is a suitable opportunity, he plans to divide the remaining 29.57% of the shares by 20% and set up the Liqiu No. 3 Fund. At that time, he will initiate the establishment of an S Fund to purchase fund shares.

After such an operation, his shareholding ratio in Facebook will drop to single digits, even lower than that of foreign girls.

Not all of the 40% Facebook shares held by Liqiu No. 2 and Liqiu No. 3 were sold, but only part of the equity.

This part of the equity is not sold at a high level, and there will be some losses in money.

But from another perspective, a lot of hidden benefits have been obtained.

First, it solves or reduces the potential risks caused by the pregnancy of foreign girls.

Second, it is better than selling Facebook equity directly, because Vision Capital has recovered more than one-third of "Facebook's future growth profits" through the identity of the two fund managers.

Third, Liqiu No. 2 and future No. 3 protected his remaining Facebook equity by mixing S funds.

Think of Liqiu No. 2 as a company. After selling 3 billion US dollars of fund shares, it is estimated that 35% of the equity has been sold, and he still has 65% of the equity remaining, and most of the benefits are still there.

Fourth, since Liqiu No. 2 is a whole, whoever encroaches on his interests in Facebook is tantamount to encroaching on the interests of Liqiu No. 2 LP-S Fund LP-blue blood nobles.

Although the blue blood aristocrats are no longer what they used to be, for example, some family members were re-elected and failed, but the internal relationships such as in-laws, blood, religion, business, etc. are still there, and together they still have huge energy.

Especially in the face of common interests, it is relatively easy to maintain consistency.

Fifth, the figure of 3 billion US dollars is very particular, which happens to be the figure of his loans from the two major investment banks.

He intends to sell the shares of the Liqiu No. 2 fund, withdraw 3 billion US dollars of funds, and repay all the arrears of the two major investment banks to avoid some accidents.

In particular, his current career is in a critical period, and the layout for the subprime mortgage crisis is about to be closed. There can be no surprises at this critical juncture.

As long as the dividends of the subprime mortgage crisis can be fully eaten, even if Facebook collapses, it will not have much impact on him.

The cornerstone of Vision Capital is the $3 billion Facebook equity-backed loan.

Once there is a problem with Facebook, it will affect Vision Capital, just like the first domino.

Now that he has repaid all the loans, Facebook and Vision Capital have completed a very critical risk cut.

Thinking of this, Xia Jingxing felt that it was worthwhile to give in temporarily and give the profits to the descendants of these opium dealers.

It is too rigid and easy to break, but it should be soft when it should be soft.

Moreover, he also plans to make the S Fund a good rate of return, which will be more convenient for him to raise funds in the United States on a large scale in the future.

Maybe in the future, they can bring this group of blue-blooded nobles to invest in Chinese chips and support the construction of socialism.

Just imagine, the family members of senior White House employees indirectly hold shares in Chinese technology companies, but the senior employees have to order to suppress these companies, causing the family to invest in floating losses...

This kind of taste is definitely not good.

Thinking of this, the resentment in Xia Jingxing's heart dissipated a lot. There is a lot to do in the future!

One more thing, Yunfeng Fund’s LPs actually have many big names. This kind of indirect shareholding can better hide themselves, especially for large companies with high investment attention, and they need to use funds to cover up their actions.

Lao Ma’s younger brother, Qian Duoduo, was shot in Hong Kong Island shortly after Ant Financial failed to go public. Qian Duoduo was still the LP of Yunfeng Fund, and Yunfeng invested in Ant.