Chapter 835 The future is promising

  "The PE fund is owned by Envision Capital, and the S fund that purchases its shares is also under Envision Capital. Does this mean that Envision Capital will charge LP two management fees and two revenue sharing?"

  Someone in the audience asked the voice of other guests. Although Vision Capital’s rate of return is very good, if the charges are too high, they have to weigh one or two in their hearts.

  Xia Jingxing had expected someone to ask this, and replied calmly: "Ari, Facebook, YouTube, and Hainei.com in the PE fund portfolio are all the world's top and highest-quality Internet companies.

  These high-quality targets, can any investment company be able to get on the car? Even Sequoia Capital has no such face.

  I can tell you clearly today that several Internet companies such as Ari 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.

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

  Ordinary PE funds can invest in any of the companies in Facebook, Ari, YouTube, and Hainei.com, which is enough to be called a star fund.

  The S fund that we intend to initiate is called the star of the star fund. Every target is carefully selected and difficult to reach by ordinary investment institutions.

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

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

  Which fund will you choose?

  Good things are inevitably expensive, and cheap, naturally there are no good ones! You can think about it carefully, am I telling the truth? "

  The audience below the stage bowed their heads in thought.

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

  Take Facebook as an example. Its valuation is already US$25 billion. The latest round of financing is in units of US$1 billion. They simply cannot afford to invest.

   Although Xia Jingxing did not break 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.

  And what Xia Jing acted to get an S fund out, they guessed that they wanted to charge more.

  After trying to understand all of this, many people showed an expression of sudden realization.

  Someone immediately asked: "Then Darren, what are the specific charges?"

  Xia Jingxing replied: “The PE fund has an annual management fee of 2% plus a 20% excess income share. The S fund has the same charging model.”

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

  This charging model does not mean that the two funds of Vision Capital 20%+20% will share 40% of the income, but there is another set of calculation formulas.

  For example, Facebook is currently valued at US$25 billion. Fund S purchases PE fund shares at this valuation. In the future, Facebook will grow to a market value of US$100 billion, and sell to make a profit of US$75 billion.

  For this part of the profit, the PE fund GP will go 20%, and the S fund will go 80% as the LP, which is 60 billion US dollars.

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

  75 billion U.S. dollars in profit, Envision Capital divided 27 billion U.S. dollars, which is about 36% of the total revenue.

  This does not include the 2% annual management fee, which is even higher if it is included.

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

  They not only want to indirectly hold equity in high-quality companies such as Facebook and Ari, but also feel painful about the high fee ratio.

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

  Google’s share price has quadrupled after its listing, and its market value has exceeded 100 billion U.S. dollars. The institutions that invested in Google before the listing have 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. It is just that they want to make more.

  Someone was unwilling to ask: “Darren, the S fund is as large as 3 billion US dollars. It should be possible to directly buy all the target shares held by the PE fund?”

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

  If you do what the other party says, PE funds and S funds will be completely irrelevant. This is what he will never allow, and the reduction in income is second.

"Liqiu Fund holds 20% equity in Facebook, 20% equity in YouTube, 20% equity in Ari, and 20% equity in Hainei.com. The valuations of these four companies are 25 billion U.S. dollars, 6.6 billion U.S. dollars, 10 billion U.S. dollars, 1.5 billion U.S. dollars."

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

  S funds with a scale of 3 billion US dollars, what can they use to buy all the shares of these companies? "

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

  Who knows that the Liqiu Fund is more hanging, the equity of 4 companies held by it alone is worth more than 8 billion US dollars.

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

  He transferred part of the equity of the four big companies he held to the name of Liqiu II. The Liqiu Fund just mentioned actually refers to Liqiu II.

  If there are other external LPs, his behavior of turning his left hand to the right will be very troublesome, but in fact, Li Qiu Fund has only one LP, and there is no resistance to adjustment.

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

  At present, Android is not fully developed, so you have to grow up a little bit and then slowly get out of the cage.

  Tesla and Fuxing Mobile also have part of their equity in the Liqiu No. 1 Fund. It is too cheap to sell right now, and it has not grown to the point where it needs to "divide profits and form an alliance."

  In the future, if necessary, S Fund can continue to acquire shares of Liqiu No. 1 Fund, which is equivalent to providing blue blood aristocrats 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, changing a group of powerful and powerful people to serve as LPs, and more people will be affected by the rain and dew.

  After Xia Jingxing revealed a huge figure of more than 8 billion U.S. dollars, the blue-blooded nobles were completely speechless. This was a naked use of power to overwhelm people and bullying them without money.

  "Dalun, Facebook is valued at 25 billion U.S. dollars, will it be too high? And the Chinese e-commerce platform Ari, which you mentioned, can reach a valuation of 10 billion U.S. dollars?"

Xia Jingxing looked at the person asking the question. He was not angry. Instead, he smiled and explained patiently: "Facebook is valued at 25 billion U.S. dollars. It's just an example I gave. Goldman Sachs and Morgan Stanley used this in the past few months. Valuation of shares, this valuation has been recognized and endorsed by the two major investment banks.

  Actually, the development of Facebook is leaps and bounds, and now it should be more than 25 billion US dollars.

  China’s Ari may not be familiar to many of you, but this company occupies most of China's e-commerce market share. EBay and Amazon's subsidiaries in China have been beaten by Ari.

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

  Everyone in the audience, look at me, I look at you, and found that there is no problem. No matter what question they ask, Xia Jingxing can always give a reasonable explanation.

  Xia Jingxing observed what he said, and when he saw it, he immediately drove the railroad while it was hot: "I have introduced so many, I must have enough understanding of each fund of Envision Capital.

  We are managing more than a dozen funds, and none of them has suffered a loss.

  We cherish feathers very much, and cherish the trust that LP has placed in us.

  This S fund is the largest single fund we have raised, and it carries many expectations of Envision Capital.

  We hope that this fund can create the most excellent rate of return and help Envision Capital rank among the world's leading alternative asset management companies.

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

  Below this number, the S fund only charges management fees and does not charge any excess revenue sharing.

  Only the part above 10%, we only charge 20% of the excess revenue share. "

  Hearing this, many people feel as if they have taken a reassurance pill and feel much more at ease.

  The fees are so high, and they are chasing the top asset management institutions on Wall Street. It is impossible not to give them some guarantees and promises. Nobody’s money is brought by the wind.

  Waiting for a while, seeing no one asks any more questions, Xia Jingxing said, “Do you have any questions? If you’re OK, today’s product promotion will be over here, and then there’s entertainment time.”

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

  In less than three years, creating 51 times the rate of return;

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

  10% guaranteed return rate;

  ……

  As long as you are not a fool, you 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 for ten years, and the investment portfolio is not static and can be adjusted at any time. For example, you can sell shares in Facebook halfway through and buy shares in Tesla and Android.

These blue-blooded aristocrats invested so much money in Envision Capital and indirectly held shares in many companies. Not only did their family members become the spokespersons of Envision Capital, Facebook and other companies, at least they involved themselves when formulating relevant plans. When it comes to benefits, you must weigh a lot.

  For example, when Facebook collapsed, the US$3 billion will be wiped out, but at least it will lose more than half.

  Because Xia Jingxing’s investment portfolio for the S Fund made up 58% of the investment in Facebook. Anyway, these people are most familiar with and favorite Facebook, so they simply fulfilled their wishes. In fact, Xia Jingxing is eager to do so.

  No one said anything off the field. Xia Jingxing smiled and said, “That’s it, enter the entertainment time, I wish everyone a pleasant and beautiful evening.”

  After the words, Xia Jingxing walked off the stage quickly.

  Belankfan walked towards him with a smile, and complimented: "Dalun, what I said is really good, the fundraising should be stable."

After Mai Jinheng was unwilling to be reconciled, Chao Xia Jingxing gave a thumbs up and said with a smile: "Dairun, it's great, I feel a little moved when I say that."

  Xia Jingxing smiled faintly: "If you don't violate your internal regulations, the two can also come and buy some S fund shares."

  Berlankfan smiled and shook his head: "Daren, thank you for your kindness, but Goldman Sachs is a Facebook shareholder and a partner of Envision Capital. We still try to avoid these sensitive behaviors."

  Mak Jinheng smiled and said: “Dalun, in my opinion, these are not important. Our cooperative relationship is as strong as a rock, and Morgan Stanley will support you as always.”

   Seeing the benefits of the two people's refusal to deliver it to the door, Xia Jingxing didn't take it seriously.

  As long as his continuous energy supply brings huge benefits to the two major investment banks, for the two CEOs, that is the ironest partner.

  "Dalun, I have a question that I want to ask you suddenly, you don’t seem to be short of money, why bother to get an S fund?"

   Seeing that Xia Jingxing didn’t answer, Mai Jinheng smiled: “Don’t mind, I just ask casually. I mainly want to ask if you need help? If you need help, you can just bring it up.”

  Beilan Kefan actually wanted to ask about this, to see if there is any new business that can be expanded, but he was preempted by McJin-Heng, so he was inconvenient to continue to ask, and watched silently from the side.

  Xia Jingxing smiled and shook his head: "Thank you. Actually, it's fine. The main reason is that my shareholding ratio in Facebook and YouTube is too high. It will take a long time to cash out slowly when the company goes public.

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

  Mai Jinheng felt that Xia Jingxing must not be telling the truth, but the other party obviously did not want to talk more about this topic. He was also very interested and did not break the casserole to ask the end.

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

  But this matter is very secretive, and it involves many things at the same time, and he can't tell them all without the city government.

  The two CEOs stayed for a while, then left Xia Jingxing and went to have a cocktail party with the blue-blooded nobles.

  Xia Jingxing did not join in the fun, he planned to calmly think about it for a while, and count the gains and losses.

  To be honest, he does not want to sell Liqiu No. 2 fund shares at this time, more accurately, he does not want to sell shares in Facebook.

  Adding YouTube, Hai Nei.com, and Ari to the S fund investment portfolio is actually a cover-up made by him, making the S fund look more like that.

  Otherwise, the S Fund only holds equity in a Facebook company, just like taking off their pants and farting. At the same time, others will also question why they don’t just sell their equity in Facebook.

  S Funds, like ordinary VCs and PEs, also pay attention to diversifying investment risks. They will hold equity in multiple companies to form an investment portfolio.

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

  After talking with Andrew that day, the two of them agreed that Facebook is about to become fully profitable and that the fruit is gradually ripening and it is easy to attract people.

  Especially, he personally still holds 49.58% of the shares of Facebook, which is so fat that it is worthy of a big vote.

  The society is too dark, and it is easy for people to take advantage of the fact that foreign girls are pregnant.

  The rich and powerful will not kill Facebook, but it is very possible to rob him in a partnership. The Anglo-Saxons have a robber gene in their bones. Otherwise, how can they be called the Anglo-Saxon gang?

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

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

   Selling at a valuation of 25 billion US dollars, in fact, it is not a cheap sale, because Facebook was only valued at 100 billion US dollars when it was listed.

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

   But he thought of a better way, to create an S fund, so that all the rich and powerful of the Eagle sauce can get on the car, everyone is covered in rain and dew, and he does not eat alone.

  After all, it is not easy to work in a foreign country. There is no dependence. 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 bribery fund.

  The officials of the Qing Dynasty dispatched navy divisions to help British and American merchants traffic opium, and anti-smuggling officials helped distribute opium. The imperial court was completely corroded and made great contributions to the large-scale circulation of opium and the expansion of trade.

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

  He thinks he can learn the methods of British and American opium dealers, but he does not engage in bribery funds, only an S-fund.

   To be more serious, his behavior is far less despicable than the British and American opium dealers. He is earning money upright, but is just protecting his own legitimate industry from being invaded.

  However, it is a modern society, after all, information is spreading rapidly, and there are many staring eyes. The blue-blooded nobleman cannot help him like the Qing Dynasty officials helped opium dealers.

  After the S Fund purchased the fund shares of Liqiu No.2, the LP of Liqiu No.2 became two, he and the S Fund. The LP 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% shares held by Liqiu No.2, his shareholding in Facebook has dropped to 29.57%, which is not particularly high.

  Next, there is a suitable opportunity. He intends to divide the remaining 29.57% of the shares by another 20% and set up the Liqiu No. 3 Fund, and then 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.

  Liqiu No. 2 and Liqiu No. 3’s 40% of Facebook’s equity were not all sold, but only a 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 looking at it from another angle, a lot of hidden benefits have been gained.

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

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

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

   Regarding Liqiu No. 2 as a company, after selling 3 billion US dollars of fund shares, he estimated to sell 35% of the shares, and he still has 65% of the shares left, and most of the interests are still there.

  Fourth, because Liqiu No.2 is a whole, whoever invades his interests on Facebook is equivalent to invading the interests of Liqiu No.2 LP-S Fund LP-blue blood nobles.

   Although the blue blood nobles are no longer in the past, for example, some family members have lost the election, but the internal network of in-laws, blood, religion, and business are still there. Together, they still have huge energy.

  Especially in the face of common interests, it is relatively easy to stay consistent.

  Fifth, the figure of 3 billion US dollars is very particular, and it happens to be the figure he borrowed from the two major investment banks.

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

  Especially his current career is at a critical period, and the layout for the subprime mortgage crisis is about to close. At this critical juncture, no accident can happen.

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

  The cornerstone of Envision Capital is the US$3 billion Facebook equity pledge 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 Envision Capital have completed a very critical risk cut.

  Thinking of this, Xia Jingxing felt that it was worthwhile to give way to the descendants of these opium dealers for the time being.

  It's too rigid and easy to fold, but it should be soft when it should be soft.

  Furthermore, he also plans to make the S Fund a good return rate, which will make it easier for him to raise funds on a large scale in the United States in the future.

  Maybe in the future, we can bring these blue-blooded aristocrats to invest in Chinese chips to support socialist construction.

  Imagine that the families of senior White House employees indirectly hold equity in Chinese technology companies, but the senior employees have to order to suppress these companies, resulting in a lot of family investment...

  This kind of taste is definitely uncomfortable.

   Thinking of this, Xia Jingxing’s resentment dissipated a lot, and there is a lot to do in the future!

  　 One more thing, Yunfeng Fund’s LP actually has a lot of big names. This indirect shareholding can better hide itself, especially large companies with a high degree of investment attention, and they need to use funds to cover up their actions.

  　　 Lao Ma’s little brother Qian Duoduo was filmed on Hong Kong Island. It happened shortly after the listing of Ma Ying Financial failed. Qian Duoduo was still the LP of Yunfeng Fund, and Yunfeng invested in Ant.

  　　

  　

  (End of this chapter)