My Age of Investment

"Mr. Xia, this is the charitable donation plan of the foundation under your name this year. 50 million will be donated to rural primary and secondary schools in Sichuan and Sichuan, and 50 million will be donated to rural primary and secondary schools across the country. All of them will be used for the purchase of sports equipment. The total amount is 100 million yuan."

In the office of China Merchants Building, Xia Jingxing took the documents from Liu Xiaoduo.

After taking a few glances, he said: "It's a little less, change it to 200 million!"

Liu Xiaoduo reminded: "In this case, all your private money will be bottomed out."

Xia Jingxing shook his head and laughed. The richest man himself is actually a poor man. Most of his assets are equity assets. There is very little liquid capital that can be completely used by individuals. Even if he suddenly has a sum of cash in his hand, he will spend it very quickly. into various assets.

For example, some time ago, Frame Media obtained a lot of Focus shares after completing the bet. After the sale, most of the funds were used to acquire two Korean game companies. Just 200 million.

Xia Jingxing has been making charitable donations since he returned to China in 2005, but at the beginning, in order to avoid trouble, the donations were not many, only tens of millions.

Now that he has become the richest man, there will be no problem in donating more.

Xia Jingxing threw the documents on the table, and said calmly, "Just donate 200 million. It's okay if the small treasury bottoms out. Anyway, I don't spend much money. All living expenses are paid by many companies under my umbrella."

"Okay, I'll reschedule now."

Liu Xiaoduo was about to turn around and leave when Xia Jingxing stopped him, "Wait a minute, you must remember to supervise the foundation, and you must not be slack or lazy. You must go to the site to inspect the school, purchase the sports equipment, and then Then send it to the school in person.”

"Well, I understand." Liu Xiaoduo nodded, turned and left.

Xia Jingxing is very meticulous in his work, because he is very concerned about whether his charitable donations can be implemented in practice and help the schools that need the most help.

At present, he still has very limited spare funds, and the donations are only aimed at primary and secondary schools in rural areas. The year before last, he initially covered his hometown, last year, he covered all of Sichuan, and this year, he has expanded to the whole country.

In fact, sports equipment will be scrapped after a short period of time. It is definitely not as good as donating a building, and it is not good for fame, but he doesn't care about these.

Not long after Liu Xiaoduo left, Xia Jingxing received a call from Lou Wei.

"President Xia~"

"lead,

You can just call me Xiaoxia. "

"Haha, look at my memory, Xiao Xia, you don't need to be one leader at a time, call me Lao Lou."

"Well, old Lou, tell me, I'll listen."

"Haha, you little guy."

Xia Jingxing smiled. After a few months of contact, he and Lou Wei have become acquainted, especially since the two sides have also established a strategic cooperative relationship. Whether Chairman Lou can make progress in the future, the CIC's investment in Vision Capital will play such a role. Little effect.

Vision Capital also hopes to maintain a good cooperative relationship with CIC.

Some time ago, Xia Jingxing had heard that Huijin would be merged into CIC and become a wholly-owned subsidiary of the latter.

What is the origin of Huijin? It is the major shareholder of six major banks including Gongnong Zhongjian, and the major shareholder of many state-owned securities companies such as CICC, China Securities, Guotai Junan... All state-owned financial companies are under the unified management of Huijin.

In other words, once Huijin is merged into CIC, Universal Bank will become a subsidiary company of CIC, which is terrifying!

"After this period of research and due diligence, we have basically figured out the operating conditions of Vision Capital, and the board of directors of CIC has decided:

Injected 1.5 billion US dollars, and jointly initiated the establishment of an S fund with Vision Capital;

Injecting $1.5 billion into...a real estate fund;

Injecting $1.5 billion...to create a private credit fund.

A total of 4.5 billion U.S. dollars, accounting for 2.25% of CIC's 200 billion U.S. dollars in asset management, you have to grasp it! "

Hearing this long series of numbers, Xia Jingxing's spirits lifted immediately, and he said, "Old...leader, don't worry, our Envision Capital will definitely do our best to ensure the preservation and appreciation of the country's foreign exchange value!"

Lou Wei laughed loudly: "Don't put too much pressure on you, don't be afraid to invest just because it's the country's money, just calm down.

Since we have chosen you, we absolutely trust you. "

"I understand, and I am grateful to the leaders of the CIC Board of Directors for their love and support."

Xia Jingxing didn't mention the specific names, but he knew that the board of directors of CIC was seated in three provinces and six ministries, one for each unit, and they were all big bosses.

"Real estate and private equity funds aside, I want to talk to you about this S fund. I heard that you can only buy 15% of the fund's shares in Liqiu No. 2."

Xia Jingxing replied with a smile: "Please understand that last year, the valuations of Facebook, Youtube, Ali, and Overseas Holdings were 25 billion, 6.6 billion, 10 billion, and 1.5 billion U.S. dollars. This year, with the development of the four companies, the estimated The value has risen, and the total valuation has reached 50 billion US dollars.

Liqiu No. 2 holds 20% of each of the four companies, and the net assets of the fund are US$10 billion, so US$1.5 billion can only buy 15% of the fund shares..."

After listening to Xia Jingxing's explanation, Lou Wei basically understood. He also knew that Facebook and YouTube are the two most highly valued unlisted Internet companies in the United States, while Ali and Hai Nei Holdings are the two most highly valued unlisted Internet companies in China. Internet company.

The Internet essence of China and the United States are all concentrated in this asset portfolio, with a total valuation of 50 billion US dollars, which is definitely not expensive.

The only thing that worries him is that none of the four companies are fully profitable yet, so there are still risks.

However, Blackstone and the others have decided to invest US$3 billion. The four companies here have invested a total of US$1.5 billion indirectly, which is not a large amount, and the risks are relatively dispersed.

Their internal professional team has also done an assessment. Except for the oil pipeline, the four companies should be fully profitable.

Lou Wei said: "That's it, I'll let someone connect with you, and formally sign the agreement and make payment!"

After Xia Jingxing thanked him, he hung up the phone.

He threw his cell phone on the table and leaned back on the chair, feeling very happy.

With a US$1.5 billion real estate fund in hand, Vision Capital can invest in many potential real estate companies and squeeze out some foreign capital.

The US$1.5 billion private equity credit fund, also known as private equity debt financing, has a lot of ways to play.

One, the senior debt fund, directly lends to enterprises and obtains mortgaged/pledged senior debt, which is characterized by safety, stability and low returns.

Second, the mezzanine fund, also known as MBO fund in China, is between equity investment and debt investment, and fills a gap in acquisition funds that is still insufficient after considering equity funds and ordinary debt funds.

In a leveraged buyout, the initiator of the acquisition generally takes out 10% of the funds and 50%-60% of the funds in a syndicated loan. This part of the funds is secured by corporate assets and is a senior debt. The remaining 30%-40% of the funds are composed of mezzanine funds. , without collateral, the loan repayment mainly depends on the cash flow generated by the business operation, and the debt repayment order is after the bank's senior debt, which belongs to the subordinate debt, which has the same effect as the notorious junk bond.

This type of loan is characterized by a long period of time, which can reach 5-7 years, and the repayment method can also be negotiated, which is more flexible than banks, but the risks are relatively high and the returns are relatively high.

In addition to subordinated bonds, convertible bonds and convertible preferred shares are also investment tools for mezzanine funds.

3. Distressed debt fund/non-performing credit investment, which specially purchases "degraded" bonds of companies in distress due to economic turmoil and various reasons. Through restructuring, the company can resume normal operations, and the value of bond assets will increase and make profits, which is characterized by uncertainty. Very high, very risky, but also the most lucrative.

The third method, Xia Jinghang is still afraid to touch it. There is an asset management company Oak Capital, which is not as famous as Blackstone and KKR. one of the investors.

However, he believes that after the subprime mortgage crisis, distressed debt funds have good investment opportunities, and they can go for a wave of bargain hunting.

At present, we have not thought so far yet, the first two methods are enough to meet the needs of Envision Capital.

The development of the two asset classes of real estate and private equity credit also marks that Vision Capital will enter a more mature development stage and evolve towards a world-leading asset management giant.

Thinking about the S Fund, he silently calculated the fund share of Liqiu No. 2 in his heart. Last time, the $3 billion S Fund acquired 34.8% of the fund shares of Liqiu No. 2. The fund will acquire 15% of the fund shares of Liqiu II.

This means that only 50.2% of the fund share in Liqiu No. 2, which is fully controlled by him, is left, almost half of it.

After penetrating multiple nested funds, it is equivalent to a 10% decrease in his personal shareholding in four companies including Facebook, Youtube, Ahri, and Overseas Holdings.

However, since the S Fund and the Liqiu No. 2 fund are nested, he can recover two layers of management fees, plus two layers of excess income sharing, which is not a big loss.

After the CIC S Fund acquires 15% of Liqiu No. 2's 15% fund shares, the money will be in his hands and can be freely used by him, and he can also invest in other industries to obtain good returns.

The most critical thing is to introduce CIC, a heavyweight LP, to Vision Capital, and get on the line.

Thinking about the trillion-dollar asset management scale of CIC in the future, even if it is divided into several points for Vision Capital to manage, it will be tens of billions of dollars, and the annual management fee alone can charge one billion to eight hundred million dollars.

As for some hidden benefits, there are more.