My Age of Investment

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

In the office on the 49th floor of the Phase II International Finance Building, Li Yaozu kept flipping through the documents in his hand, and said, "Mr. Xia, although there are policies and regulations in the mainland, the urbanization process is far from over, and the real estate dividends can still be eaten at least ten times." Year."

Xia Jingxing didn't answer. Holding a teacup, he stood in front of the floor-to-ceiling windows, looking at the magnificent and beautiful skyline of Central, Hong Kong Island. Then he thought about the small cage houses everywhere. This is the real social fold of Hong Kong Island.

He suddenly turned his head and asked, "Yaozu, don't you people in Hong Kong Island really like real estate?"

Li Yaozu laughed dryly, "I can't say I like it. Housing prices have risen for decades, and it has become what it is today. Except for those real estate families, few people really like real estate speculation. Even if it is a middle class with an annual salary of one million, it is good to pay for it." It’s a bit of a building, and the work is very tiring.”

Xia Jingxing nodded, walked back to his seat and sat down, and asked, "Have you read the terms and conditions for Hengtai from the three organizations?"

"After reading it, it's really dark!"

Li Yaozu gently put down the document, leaned back in his chair and said: "In addition to the issuance of preferred shares requiring Hengtai to pay 5% annual dividends, it also involves gambling.

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

If the above-mentioned minimum rate of return cannot be reached, Xu Tingyin, the major shareholder of Hengtai, needs to transfer a certain amount of shares in Hengtai to investors to ensure that investors obtain the minimum return.

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

I think the reason why Xu Tingyin told us the conditions of Temasek and the others is that he hopes that we can offer better conditions. "

Xia Jingxing nodded slightly. The investment institution is not a philanthropist. Through the terms they offer Xu Tingyin, they can get a glimpse of the leopard. Even if it is a quasi-listed company, if it has no right to speak, it will still be slaughtered by capital.

"Have you read the second item?" 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 listing.

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

The interest or rate of return is also really black,

19%, usury!

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

Xia Jingxing said: "We don't have investment banking or commercial banking business, so it is difficult to provide or match such a large loan to Hengtai. Although the interest is high, our equity investment business earns no less than this."

He chatted with Xu Tingyin for several hours in the morning, but they didn't come up with a result.

Seeing that the father of the potential financial owner was about to run away, Xu Tingyin finally handed over the terms and gave him the terms of Temasek, Merrill Lynch and Deutsche Bank.

After seeing these clauses, Xia Jingxing found it difficult to deal with.

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

Li Yaozu sighed, "This is a huge amount for Vision Capital, we cannot take this order alone."

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

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

Li Yaozu frowned and said: "President Xia, I have something to say, I don't know if I should 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 business includes corporate private equity funds, real estate opportunity funds, funds of funds of hedge funds, senior debt funds, proprietary hedge funds and closed-end mutual funds, among others.

But their two core businesses are private equity and real estate, and these two types of funds are also the largest in terms of fundraising.

Blackstone's current asset management scale is close to 100 billion U.S. dollars, and we have only broken through 10 billion U.S. dollars not long ago.

Compared with Blackstone, we are short of fund types.

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

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

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. fund. "

Xia Jingxing thought about it carefully, and admitted that what Li Yaozu said was somewhat reasonable. Vision Capital's product line was indeed complete, but compared to some giants, it was still not refined enough.

"You are right, but it is impossible for us to set up a real estate fund and a debt fund for Hengtai.

In fact, we have our own characteristics with Blackstone and KKR, and it is impossible to be completely 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 specialty?"

Li Yaozu hesitated for a moment, if it is said that hedge funds are the characteristics of Vision Capital, he believes it.

But VC, Huiyuan Juice, which is ringing the bell today, is actually invested by Liqiu Fund, which can be regarded as a "minority equity investment" in PE funds.

Strictly speaking, Vision Capital’s VC fund IPO exit cases are still zero.

Xia Jingxing knew what Li Yaozu was hesitating about, and said with a smile: "Hedge funds have quick results, good funds and bad funds can be seen in one year, and VC needs 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 said with a smile on his face, "So, don't worry about that right now. We are not China's Blackstone and KKR, but the world's Vision Capital."

Li Yaozu smiled, "I'm the one who made a fool of myself. Indeed, those who imitate me live, and those who imitate me die! You should not imitate other institutions, you should learn from their philosophy - to create a trump card business."

Xia Jingxing smiled slightly. Li Yaozu's comprehension ability was still very strong, and he understood his true meaning.

It is impossible to have a comprehensive investment institution, and what he understands is also a major trend. For example, VC and hedge funds are very advantageous. Other investment behaviors such as leveraged buyouts, which are difficult to operate, must consider the real skills of the team up.

However, he is not afraid of challenges, and sooner or later he has to give it a try, otherwise he will encounter a ceiling in the future.

"However, Mr. Xia, I suggest that we better set up a real estate fund and a debt fund. China's real estate industry still has a ten-year bonus period, and we cannot let foreign capital take all the money away.

You see, if we don't invest in Hengtai, Temasek, Merrill Lynch, and Deutsche Bank will invest.

Part of the money that ordinary people worked so hard to buy houses went to the local government that sold the land, and part of it was earned by the real estate developers.

A large part of the part earned by real estate developers was taken away by foreign investment institutions. After penetration, the profitable LPs are foreign sovereign wealth funds, universities, pension funds, retirement funds, etc. "

Xia Jingxing smiled, "Our LP is not those people."

"Not always!"

Xia Jingxing immediately came to his senses and asked, "You mean to raise funds from domestic LPs."

"That's right!"

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

Xia Jingxing smiled and said nothing, the VC was all his own money, few people knew the truth about it. However, PE funds were released some time ago, and some soup and water were given to American investors to drink.

Li Yaozu continued: "Look, Vision Capital straddles China and the United States. There is no reason for us not to raise funds from Chinese LPs, especially domestic companies like Hengtai, which can completely invest with domestic funds."

It's not that Xia Jingxing has never thought about this, and said with a wry smile: "The domestic development is still relatively slow, and the university endowment funds are not enough to spend, so how can it be used for financial management."

He remembered that in his previous life, the domestic university endowment fund became an LP, and it should be ten years later, and he was the first to eat crabs in the two major universities in northern Qing Dynasty, and the other universities had no money.

The drought dies, and the flood dies.

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

"Last year in the capital city... you understand." Xia Jingxing shook his head, "At this juncture, you asked me to raise funds, don't you think so?"

Li Yaozu also watched the news on weekdays, remembered this big incident, knew how serious the situation was, and immediately fell silent.

"Oh, I almost forgot, Mr. Xia, China Investment Corporation will be listed soon, our own sovereign wealth fund."

Xia Jingxing sighed, Blackstone is going to IPO soon, and CIC invested in Blackstone for the first time, buying about 10% of the shares for 3 billion US dollars, with a lock-up period of four years, no board seats, and no voting rights.

Then came the subprime mortgage crisis.

For more than a year, this investment lost 2.5 billion US dollars, and netizens pointed their noses and scolded them.

After waiting for seven years, the middle of CIC has replenished several hundred million dollars of positions, which can be regarded as diluting the cost of holding shares and barely unwinding.

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 out a series of scandals. For example, the 3 billion US dollars invested in China Betting and most of the funds raised in the IPO were used to purchase the business in the hands of partners. The company’s major shareholders and management used the IPO to transfer and transfer benefits. Mark of.

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

It's just that Vision Capital doesn't have public shareholders, and he doesn't encroach on the interests of minority shareholders.

Who threaded the needle on this list? The surname is Liang, the rich man of Hong Kong Island, and married a star athlete wife.

Mr. Liang Caiye became the chairman of Blackstone Greater China after retiring from public office. The first thing he did was to promote the investment in Blackstone. It took only 3 weeks to finalize the $3 billion, which is absolutely worthy of the salary and bonus that Blackstone gave him.

With the protection of CIC, Blackstone entered the Chinese market smoothly, bought commercial office buildings in Shanghai, built Shouguang Logistics Park, established a RMB fund in mainland China, and joined hands with New Hope to acquire the largest chicken farm in Australia...

During the worst three years of the financial crisis, Blackstone was losing money everywhere. Only the investment business in the Chinese market was extremely strong and achieved a nearly 100% return on performance.

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

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

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

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

Second, we can also deepen our relationship with the Yamen.

Third, we increase the scale of asset management, and we also have a small part of the money earned. "

Xia Jingxing glanced at Li Yaozu appreciatively, and said, "Your suggestion is very good. If you have good ideas in the future, you can bring them up."

"Oh, by the way, I will give you another task to investigate the real estate market and various real estate companies on Hong Kong Island."

Li Yaozu didn't ask any more questions, and responded with a smile.