The investment era of rebirth

Chapter 238 The second fund rule formulation!
Then, the next day, after the Fund Market Business Department of Yuhang Investment Company, in accordance with Su Yu's instructions, released the news that the second fund would be launched before the National Day...

Zhejiang, Shenzhen, Shanghai, Yanjing... Numerous large investors from all over the country who paid attention to 'Wealth Road' and 'Yuhang No. 1' fund products began to raise funds frantically, and booked tickets overnight to Yuhang. Gathered near Yuhang Investment Company, waiting for the day when the fund will go on sale.

And there are many bosses of large groups in local and surrounding provinces with status and status.

As well as people from all walks of life with strong assets and a wide network of contacts.

They also began to get in touch with Su Yu and other core figures in the 'Yuhang Investment' as friends through the group of investors who had previously invested in the 'Yuhang No. 1' fund. , get more fund investment shares.

And this time...

After Su Yu released the news, he was intensively discussing with the directors of the company's fund business department the establishment of a new fund, the 'Yuhang No. 2' fund.

For example, the approximate amount of funds to be raised; the maximum number of shares an investor can subscribe for; how to calculate fund management fees and profit sharing, etc. A series of issues.

"I think……"

In the internal meeting, Li Meng thought for a while and said: "The overall fundraising scale of the 'Yuhang No. 2' fund should not be too large, and the amount of 30 billion to 50 billion is appropriate, because the current market liquidity is limited after all. , the volume is too large, the growth of net worth is difficult, and our entry and exit under the current liquidity is also a problem."

"The amount of 30 billion to 50 billion can cover many investor groups."

"At the same time, the entry and exit of funds of this size can be completed quickly under the current market liquidity."

"The volume is too small, and the investor group covered is limited. Even if we can make a high performance, the expansion effect of its interest groups will not be great, and it will not have much impact on our company's network accumulation and common interest network construction. The effect is so... it would be better not to open a new fund."

"The volume is too large, and although it covers a wide range of investor groups, it will be more difficult for us to operate."

"The key is that it is not easy to increase the net worth, and the market liquidity is not sufficient."

"If the net value performance of our second fund becomes mediocre, it will be a huge blow to the subsequent development of our fund, and we will lose the trust of investors."

"So I think……"

"Compared to the current liquidity of 1000 billion in the market, a fundraising amount of 30 billion to 50 billion is the most appropriate."

Hearing Li Meng's opinion, Su Yu nodded slightly, then turned to Yu Xiaobing from the Fund Market Business Department, and asked, "Manager Yu, what do you think?"

Yu Xiaobing coughed lightly, and said: "If you follow the philosophy of the unit I worked for and most private equity institutions set up funds, the more funds you raise, the better. After all, net worth is an uncertainty. things, but the basic management fee is certain.”

"The more funds raised, the more basic management fees you can receive."

"And the more basic management fees, the more it can dilute the company's operating costs and increase the company's actual profitability."

"But this is for ordinary private equity institutions..."

"President Su's investment ability is the only thing I have ever seen in my life. If our company can maintain a relatively good growth in net worth, then the basic management fee is not particularly important to us, so... there is no need to focus on the pursuit of scale. growth, appropriately reduce the scale, and maintain fairly strong expectations in investors’ minds.”

"This is more conducive to the future development of our company, and it is also more conducive to our establishment of a network of interests."

"So, you agree with Manager Li's opinion, don't you?" Su Yu asked.

"Yes!" Yu Xiaobing nodded, "I always believe that public equity funds only pursue economies of scale, and private equity funds must always take performance as the yardstick in order to go further."

"Okay!" Su Yu said, "Since the opinions are unified, the scale of the fundraising must be determined at 50 billion!"

"Next..."

Su Yu paused, and then said: "Talk about the standard of profit sharing, fund management fees, restrictions on investors' subscription shares, and the lock-up period!"

"Profit sharing standards, fund management fees, etc., should be implemented according to the standards of the previous fund!" Li Meng said, "As for the restrictions on investor subscription shares, except for the minimum standard of 100 million subscriptions, which is dead, the upper limit is defined. I think it is more reasonable to apply for a maximum of 1000 million shares.”

"Based on the 50 billion fundraising quota..."

"Even if every investor subscribes at the top price, 500 investors can be covered, which is quite a lot."

"If calculated according to the minimum subscription amount, it is enough to cover 5000 investors, and the establishment of this interest network...is quite broad."

"As for the lock-up period and the like..."

"I think one year is the most suitable time. At other times, unless the net value of the fund falls so low that it is forced to liquidate, or we voluntarily carry out net value settlement and voluntary liquidation, it cannot be redeemed."

Su Yu pondered for a moment, did not speak, and asked Yu Xiaobing again: "Manager Yu, what do you think?"

Yu Xiaobing glanced at Li Meng, thought for a while, and said bluntly: "President Su, when our company was established, the first fund set up had an initial quota of only 4 million. It is appropriate to set it after the net value is greater than 1.5."

"but now……"

"If our second fund's fundraising amount is 50 billion, the profit share will still be set after the net value is greater than 1.5, which is not worthwhile for our company's actual interests."

"After all, our company is already famous now."

"Our relationship with investors is that we are in an active position, so... there is no need to continue to give up profits."

"And in the current market, other private equity institutions generally start to implement profit sharing after the annual net worth exceeds 1.2 or 1.3."

"I think we can follow the general rules of the industry in the second fund."

"That is, after the annual net value exceeds 1.3, that is, the annual profit exceeds 30%, that is, to participate in the subsequent profit sharing."

"Of course, in terms of specific profit sharing, you can also set a ladder."

"For example, if the annual profit is more than 30%, but less than 50%, the company will take 30% of the profit that exceeds 50%; when the annual profit of the fund exceeds 50%, the company will take [-]% of the profit that exceeds [-]%."

"As for the basic management fee..."

"The setting of the first fund before was quite good. Taking care of investors like this is also beneficial to us."

"There is also the limit on the share of investors' purchases. I think the upper limit of 10 million is still too much. The upper limit of 500 million purchases is enough. After all, our goal is to cover more investment groups. The chain can travel farther.”

"As for the lock-up period..."

"My thoughts with Manager Li are the same. The one-year lock-up period is a general rule."

"Well, I thought about it carefully, and agreed with Manager Yu's suggestion on profit sharing." Li Meng did not wait for Su Yu to speak, and then said, "But I still think the purchase limit of 500 million is not appropriate."

"Why isn't it suitable?" Su Yu asked.

Li Meng pondered for a moment, then replied: "Five million cash investment is really not a small amount of money for ordinary people, and even for many big households, but our goal is not only for these big households, but also for those enterprises Boss, bosses of the group!"

"The resources and contacts in their hands are crucial to the development of our company."

"Only by binding them to our interest chain, will our company's future development get more help, and someone will naturally solve many troubles for us."

"However, if the investment quota is limited to 500 million..."

"These people, facing such a small amount of money, probably won't care much, and it will be difficult to form a very close interest relationship with us."

"After all, a small amount of capital investment, even if it is doubled, will not have a great impact on them."

"But tens of millions of funds can almost enter the threshold of interests they care about, and can basically tie them to our boat."

"Hmm!" Su Yu smiled, "It makes sense."

Yu Xiaobing pondered for a while, and also felt that the investment limit of 500 million was not enough if he wanted to tie down these people worth hundreds of millions, so he didn't refute it.

Su Yu saw that the two basically had no different opinions.

So he smiled, made the final decision, and said, "Since everyone has no different opinions, let's agree on the final result of the comprehensive discussion!"

"The fundraising quota is limited to 50 billion."

"The range of investor subscription quotas is limited to between 100 million and 1000 million."

"The fund's basic management fee and profit sharing are set at..."

"The annual fund net value is less than 1, that is, the fund has a loss, and the management fee is exempted; the annual fund net value is greater than 1 and less than 1.2, that is, the annual profit is less than 20% and there is no loss, and a 2% management fee is charged; If the net fund value is greater than or equal to 1.2 and less than 1.5, a 3% management fee will be charged; if the annual fund net value is greater than or equal to 1.5, a 4% management fee will be charged.

"And when the fund's annual net value is greater than 1.3."

"In addition to the 4% fund management fee, a 1.3% profit share will be charged after the fund's annual net value is greater than 30."

"And when the fund's annual net value is greater than 1.5."

"The company will charge 50% of the profit share for the excess profit of the fund after more than 50% of the profit."

"The lock-up period of the fund is one year. After one year of subscription, it can be freely redeemed within the open redemption period. At the same time, the fund liquidation line is set at 80%. When the overall net value of the fund loses 20%, that is Unconditional liquidation stops losses, and the company enjoys free settlement and all rights to information disclosure."

"Agreed!" Li Meng nodded after Su Yu finished speaking.

"Agreed!" Yu Xiaobing also nodded in response.

Afterwards, the meeting ended, and Su Yu handed over the minutes of the meeting to the company's legal lawyer, Lawyer Shao, according to the rules agreed upon by everyone, and then asked him to sort out the relevant purchase contract.

Immediately afterwards, the filing and declaration of the new fund was made to the Management Office of the Fund Industry Association.

And after all the busy work...

On September 9th, Thursday, when the index achieved eight consecutive positives, the sound of "bull market" had begun to spread throughout the domestic investment market.

Yuhang Investment Company officially ushered in the day when the second fund, the 'Yuhang No. 2' fund, was officially subscribed.

(End of this chapter)