Chapter 898 Heavyweight LP injects USD 4.5 billion

   "Mr. Xia, this is the charity donation plan of your foundation this year. 50 million donated to Sichuan and Sichuan rural primary and secondary schools, 50 million to rural primary and secondary schools across the country, all 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 handed over by Liu Xiaoduo.

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

   Liu Xiaoduo reminded: “In that case, all your private money will be bottomed out.”

Xia Jingxing shook his head and laughed. He, the richest man, is actually a poor man. Most of his assets are equity assets, and there is very little liquidity at his disposal. Even if he suddenly has a sum of cash in his hand, he will quickly spend it and change it. Into a variety of assets.

For example, the media acquired a share of Focus after completing the gambling in the previous time frame. After the sale, most of the funds were used to acquire two South Korean game companies. Just two billion.

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

  Now that he is the richest man, there is no problem in donating more.

  Xia Jingxing threw the documents on the table and said lightly: “Just donate 200 million yuan. It’s okay if the small vault has bottomed out. Anyway, I don’t spend much money. All living expenses are paid by multiple companies under it.”

   "Okay, I will re-arrange it now."

Liu Xiaoduo was about to turn around and leave, and was stopped by Xia Jingxing. "Wait, you must remember to urge the foundation. There can be no slack or laziness. You must go to the site to inspect the school and purchase the sports equipment uniformly. Then send it to the school in person."

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

  Xia Jingxing does things very meticulously, because he cares very much about whether his charitable donations can be implemented to help the schools that need help most.

  At present, his spare funds are still very limited. The donations are only targeted at rural primary and secondary schools. The initial coverage of his hometown the year before last, the whole Sichuan and Sichuan last year, and the whole country this year.

  In fact, sports equipment will be scrapped in a short time. It is definitely not as good as donating a building, and it is not conducive to fame, but he doesn’t care about it.

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

  "Mr Xia~"

  "Leader, you just call me Xiaoxia."

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

   "Well, Old Lou, you say, I will 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, CIC’s investment in Envision Capital will play a role. Little effect.

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

  Some time ago, Xia Jingxing had heard that Huijin will merge into China Investment Corporation and become a wholly-owned subsidiary of the latter.

  What's the origin of Huijin? It is a major shareholder of six major banks including China Construction Industry and Agriculture, and a major shareholder of many state-owned securities such as CICC, China Securities, Guotai Junan... All state-owned financial enterprises are under the unified management of Huijin.

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

  "After this period of research and due diligence, we have basically figured out the operating conditions of Envision Capital, and the CIC Board of Directors decided:

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

  Inject 1.5 billion US dollars... to establish a real estate fund;

  Inject 1.5 billion US dollars...Establish a private equity loan fund.

  A total of US$4.5 billion, accounting for 2.25% of CIC’s US$200 billion asset management scale, you have to grasp it! "

  Hearing this long series of numbers, Xia Jingxing's spirit suddenly lifted, and he said: "Old...leader, you can rest assured that our Envision Capital will do our best to ensure the preservation and appreciation of the country's foreign exchange!"

  Lou Wei laughed loudly: “Don’t put too much pressure on you. Don’t be afraid to invest because this is the country’s money, and calm down.

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

   "I understand, thank you all the leaders of the CIC Board of Directors for your love and support."

  Xia Jingxing didn’t give a specific name, but he knew that the CIC’s board of directors had seats in three provinces, six departments, and one unit, and they were all bigwigs.

  "Real estate and private equity funds will be put aside first. I want to talk to you about this S fund. I heard that I can only buy 15% of the fund shares of Liqiu No.2."

Xia Jingxing smiled and replied: "Please understand that last year, Facebook, YouTube, Ari, and Hainei Holdings were valued at 25 billion, 6.6 billion, 10 billion, and 1.5 billion U.S. dollars, respectively. With the development of the four companies this year, it is estimated that 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 asset of the fund is 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 it. In fact, he also knew that Facebook and YouTube are the two most highly valued unlisted Internet companies in the United States, while Ari and Hainei Holdings are the two most highly valued unlisted Internet companies in China. Internet company.

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

  The only thing that worries him is that the four companies have not yet fully profited, and there are risks.

  But Blackstone, they both decided to invest 3 billion US dollars. The four companies here have a total indirect investment of 1.5 billion US dollars, which is not a large amount, and the risks are relatively diversified.

  Their internal professional team has also made an assessment. In addition to the oil pipeline, the four companies should have full profitability in sight.

  Lou Wei said: "Let's do it, I'll let you connect with you, and officially sign the agreement to make payment!"

  After thanking him, Xia Jingxing hung up the phone.

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

  With 1.5 billion US dollars of real estate funds in hand, Envision Capital can invest in many potential real estate companies, squeezing out some foreign capital.

  The US$1.5 billion private placement credit fund, also known as private placement debt financing, is very rich in gameplay.

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

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

Leveraged buyouts generally involve 10% of the acquisition initiator’s funds and 50%-60% of the funds in syndicated loans. This part of the funds is secured by corporate assets and belongs to priority debt. The remaining 30%-40% of the funds are composed of mezzanine funds. Without collateral, loan repayment mainly relies on the cash flow generated by business operations. The order of debt repayment is after the bank’s priority debt, which is subordinated 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 be negotiated, which is more flexible than the bank, but the risk is higher and the return is higher.

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

3. Distressed debt funds/distressed credit investments, specializing in the purchase of "degraded" bonds of companies that are in trouble due to economic turmoil and various reasons. Through reorganization, the company can resume normal operations, and the value of bond assets will rise and profit, which is characterized by uncertainty Very high, the risk is very high, but also the most profitable.

The third gameplay is that Xia Jingxing still dare not touch it. There is an asset management company, Oaktree Capital, which is not weaker than Blackstone and KKR. It specializes in this area. It is the world’s largest distressed debt investor and the world’s largest credit card. One of the investors.

  However, he believes that after the subprime mortgage crisis, there are good investment opportunities for distressed debt funds, and they can go to buy the bottom.

  At present, I haven't thought so far yet. The first two gameplays are enough to meet the needs of Vision Capital.

  The development of the two asset classes of real estate and private equity also marks that Envision Capital will enter a more mature stage of development and evolve towards a top global asset management giant.

Thinking of the S fund, he silently calculated the fund shares of Liqiu No. 2 in his mind. The last time the S fund of 3 billion US dollars purchased 34.8% of the fund of Liqiu No. 2 fund shares, the second S fund formed by CIC invested 1.5 billion US dollars. The fund will acquire 15% of the fund shares of Liqiu No.2.

  This means that only 50.2% of the fund share in Liqiu No. 2 of Machikin under his complete control, which is almost half of the ratio.

  After penetrating multiple layers of nested funds, his personal shareholding in four companies, including Facebook, YouTube, Ari, and Hainei Holdings, has fallen by 10%.

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

   After the US$1.5 billion of China Investment S Fund acquired 15% of the fund shares of Liqiu No. 2, the money will be in his hands and can be freely controlled by him. Investing in other industries will also have the opportunity to obtain good returns.

  The most important thing is to introduce the heavyweight LP of CIC to Envision Capital and get it online.

  Think about the trillion-dollar asset management scale of CIC in the future. Even if it is managed by Envision Capital in a few points, it will be tens of billions of dollars. Every year, the management fee can collect 1 billion or 800 million US dollars.

  As for some hidden benefits, there are more.

  (End of this chapter)