America's Road to Wealth

Chapter 276 New title 【Private Equity King】

"Oh, I see. That's very good. Remember to have a good rest, and remember to take care of your body."

"Well. I'm at the company. I'll go back to accompany you at night."

"Okay, that's it. Goodbye~"

"."

Smith Building, Queens, New York.

The first floor of the building was once again opened up as a temporary conference hall.

There are a total of more than 150 LPs of Smith Capital, that is, investors.

I was invited over today.

Because today is the day when the closed period of Smith Capital Phase 2 and Phase 3 private equity funds ends.

In other words, after the money was distributed in February this year.

This month, Smith Capital will give investors another money.

With the first time, there will be experience the second time.

It will slide a lot and will not be so green anymore.

The process of the second money-sharing meeting is the same as last time.

It was Meriot, the former deputy manager and one of the current presidents, who first came to the stage to talk about the most common Wall Street clichés.

After the cliché was finished, it was David who came to the stage to announce the results of this private placement.

The difference is that this time, Abel was too lazy to even go on stage.

As the chairman of the company, he sat under the stage and looked at everyone indifferently.

The second and third private equity funds of Smith Capital.

These two funds, their returns did not disappoint investors.

Smith's second fund company, the company's current account balance is 87.56 billion US dollars.

Smith Third Fund Company, the company's current account balance is 86.95 billion US dollars.

Same with the defunct First Smith Fund.

The profits of these two funds have exceeded 50 billion US dollars.

Smith Capital's first, second, third, three consecutive private equity funds.

A total of $166.95 billion in profit was made for investors.

It also earned about US$83.47 billion in dividends for Abel, the fund manager.

Among them, US$8.347 million will be drawn by Smith Capital as the company's profits.

In other words, from last August to now.

Abel is in the third round of private equity funding of Smith Capital.

As much as 75.13 billion U.S. dollars in dividends were drawn.

This is a scary number.The combined income of all fund managers on Wall Street this year may not have such a figure at present.

But the investors are very much in favor of him taking this figure.

Because no one can do what Abel did, nearly doubling their investment in just half a year.

If it is converted into an annualized rate of return, it is about 85% a year.

Except for the stock market and highly risky speculative investments.

In the market, no investment manager can do this.

Not even Buffett and Soros.

Investors who have received their principal and profits are eager for Smith Capital to start private equity again.

Of course, it must be the fund manager of Albert.

Otherwise, if it is an ordinary private placement like the fourth, fifth, and sixth rounds, they will not be interested.

For the face of Smith Capital and Abel's name, those funds will buy more or less.

But it is absolutely impossible to get them to invest large sums of money.

Who called those private equity funds, although the income is not bad.

But this kind of good is only compared with ordinary private equity funds.

These three funds are completely different from the three funds managed by Aberdang Fund.

More than 150 investors asked Smith Capital to start a new private equity fund.

It is that the fund manager of this private equity fund must be Abel, and everyone is no longer satisfied with the fundraising quota of US$30 billion.

They want more.

But Smith Capital and Abel did not reply on the spot, and the money distribution meeting ended after the money distribution.

Only shortly thereafter, the next day actually.

A piece of news from Wall Street began to slowly spread and ferment among the American media and the Internet.

A person familiar with the matter said that Smith Capital's financial product "Smith Seventh Fund Company" will be established in the near future.

The fundraising will be $500 billion.

Ordinary Americans don't have much reaction to this.

Whether it's $500 million or $[-] billion, it's too far away from the average American.

What's more, a private placement that needs to subscribe for at least $100 million or more?
Which one can the average American afford?
Ordinary Americans still prefer to buy the ones that Smith Capital has just launched.

The Internet virtual currency fund currently sold on the Internet - "American Family Money Treasure".

This is one of Smith Capital's latest financial products, and the barrier to entry is incredibly low.

As long as you have 1 dollar, you can buy this product that has been referred to as "American Treasure".

Many people have discovered that buying it and redeeming it is very simple.

All you need is to open an account with Pacific Bank of Commerce.

Then you can quickly buy and redeem between your bank and Smith Capital accounts without handling fees.

The key is that there is no handling fee, which can be regarded as another deposit mode.

Compared with depositing in the bank, the interest rate is a little higher.

Ordinary people are more concerned about this.

So what the rich care about, of course, is not some "American treasure".

They will only care more about the Smith Seventh Fund.

Fund investment in the world, after years of development, has long been a mature investment method.

With the advent of the new century, the scale of US funds has grown rapidly, and the inflow of funds from equity funds has been significant.

截至2001年底，美国受监管基金管理的总净资产为28.1万亿美元，相比2000年底的24万亿美元增长13%。

At the same time, the fund's net purchases reached an all-time high of nearly $1.27 trillion.

In addition, the total number of fund companies in the United States has also remained stable, but the degree of head-to-head has deepened.

In 2001, the total number of US fund companies was 1.6. In recent years, the number of US fund companies has been relatively stable.

Fund companies are mainly independent fund consultants, managing 72% of the assets of investment companies.

Over the past decade, the concentration of U.S. fund companies has increased significantly.

其中CR5从1995年底的15%上升到2001年底的25%，但中部基金公司所占市场份额则有所下降。

Simply put, those top funds are more sought after than ever.

Based on these data, at a glance, the figure of US$500 billion in the seventh private placement of Smith Capital does not seem to be a lot.

As everyone knows, it is already very scary for a single private equity fund to reach this scale.

It's very simple, just look at a set of data to know what a $500 billion private placement is.

Currently the world's number one private equity firm is the Blackstone Group.

Note that it is the Blackstone Group, not the Blackrock Group.

Black Rock is a subsidiary of BlackRock, which is a subsidiary of PNC Financial Services Group.

PNC Financial Services Group is currently one of Smith Capital's shareholders.

Blackstone Group is mainly private equity.

PNC's Black Rock Group is a mutual fund, which is mainly public offering.

As the world's No. 865 private equity firm, the funds managed by Blackstone Group at this time are only about US$[-] billion.

No.2 is EQT (EQT Group) in Europe.

EQT is a Swedish company.It is currently the number one private equity firm in Europe, with over EUR 800 billion in assets under management.

EQT is also listed on the Stockholm Stock Exchange in Sweden.

Yinruida, the parent company of EQT Group, is the largest industrial holding company in the Nordic region. Its subsidiaries include many Fortune [-] companies such as ABB, Ericsson and Electrolux.

No.3 is the "Koleberg Kravis Roberts" group in the United States.

The name is too long, and the industry generally calls it KKR Group, the third largest private equity company in the world and the second largest in the United States.

Controls more than $700 billion in funds.

What do you see?
If Smith Capital's private placement of 500 billion US dollars this time, all of them can be raised successfully.

Then it will immediately become one of the top ten private equity firms in the world.

Because in the field of private equity, a single private equity fund of more than 30 billion US dollars is already a large private equity fund.

In the global private equity field, there are more small private equity funds with a scale of hundreds of millions of dollars, which specialize in a certain investment field.

Raising $500 billion at a time.Or private equity, even on Wall Street, this is the first time ever.

After the news came out, the Wall Street giants didn't believe it at first.

Because if this fundraising is successful, it will be the largest single private equity fund in financial history.

Others include EQT Group, Blackstone Group, and KKR Group.

They are all managing dozens or hundreds of private equity funds, and the funds under custody have such a large scale.

Smith Capital is good, and wants to eat all at once.

At one time, I wanted to become more than half of the Blackstone Group.

To be honest, even Wall Street, which is already a little afraid of Abel, is not optimistic about his success.

120 Broadway, New York City, Four World Financial Center Tower, Manhattan.

34th floor.

Here is one of the five largest investment banks on Wall Street and the headquarters of Merrill Lynch Securities.

David Komansky, chief executive of Merrill Lynch, is talking to Charlie Schaff, who has been rehired as special financial advisor instead of CFO.

Charlie Schaff in the last USD/JPY event.

As the unlucky backer, he and one of the original presidents, the black O'Neill, became the scapegoat.

Black O'Neill stepped down after that.Afterwards, he was sued by Merrill Lynch Securities, and the court will be held in one month.

With the energy of Merrill Lynch, even if O'Neill is black, he will inevitably go to prison.

As for how long to sit, it depends on the mood of Merrill Lynch's current CEO, David Komansky.

Judging from the degree to which O'Neill was overhead for David Komansky at the time.

It is estimated that Stanley O'Neill will not have a chance to come out if he is not in prison for ten or eight years.

In contrast, Charlie Schaaf was an unlucky guy. He was O'Neill's confidant at that time.

Although he advised O'Neill at that time, the black president did not listen.

After that large loss, Merrill Lynch pursued responsibility.

O'Neill stepped down, then was indicted.Charlie Scharf was fired to deal with the turbulent funders.

But the top brass, including David Komansky, knew that Charlie Schaff was innocent.

Everyone knows that Charlie Schaff is a financial elite with strong capabilities.

If it weren't for Charlie, Merrill Lynch's losses would have been even worse.

Plus David Komanski needs some henchmen to get back in power.

So two months after firing Charlie Schaff, he was brought in to Merrill Lynch.

It's just that Charlie can't continue to serve as the chief financial officer as before.

Charlie Schaff is now Mr. CEO's special financial advisor.

It was David Komansky who wanted to cultivate the henchmen of the bribes, because he could.

"Private placement of a single $500 billion private placement."

In the CEO's office.

David Komansky looked at Charlie Scharf opposite, "Charlie, what do you think?"

This thing is outrageous.

Even Charlie Schaff has always been the group of Wall Streeters who admire Abel the most.

At this moment, Charlie Schaaf is also a little bit unbelievable:
"500 billion US dollars? Is it too exaggerated? Even if it is divided by ten, it is not an easy task to raise 50 billion US dollars at one time."

David Komansky nodded and said, "I also discussed this matter with Richard at the financial reception yesterday. Richard also thinks that it is impossible for Smith to complete it."

"But what if he finishes?" Charlie Schaff couldn't help asking.

"We have to be careful after that." David Komansky said with a wry smile:

"Smith with $500 billion, plus his own money, and other public funds. Wall Street is not safe anymore."

"Yeah," said Charlie Schaff.

"Also." Charlie Scharf said softly again: "Mr. Komansky. If it is true, will Merrill Lynch subscribe?"

"Why not?" David Komansky said directly: "Of course we will invest as long as it is guaranteed."

Charlie Scharf thought you were contradictory.

On the one hand, I don't believe that I don't think that Abel Smith can reach the fundraising quota.

On the one hand, if it is true, Merrill Lynch will invest.

what is this?
Both good and bad?

Charlie Schaff, who was reticent at the time, decided not to comment.

"Charlie." David Komansky didn't let him go. "You know Abe Smith. You know David Mellon better."

"You go to Smith Capital. How about going to David Mellon to confirm whether this private placement is real or fake? Please."

Charlie Schaff smiled wryly, knowing he couldn't refuse.

Unless he doesn't want to work at Merrill Lynch and doesn't want to continue working in the financial field.

Because it is obvious that David Komansky brought himself, the confidant of the former president O'Neill, back to the company as this special consultant.

The most important thing, with a high probability, is that before this, I was the main person in charge of negotiating with Smith Capital at Merrill Lynch.

I also have a good friendship with David Mellon.

Others at Merrill Lynch have no friendship with them, so if they let themselves do it, the effect will be better.

This is the biggest role for Merrill Lynch at present.

It is also the most important reason why David Komansky will let himself come back.

Thinking of this, Charlie Schaff could only sigh in his heart, and smiled on the surface:
"Of course it's all right. Mr. CEO, I'll get the job done."

Seeing how sensible he was, David Komansky patted him on the shoulder, "Charlie, look ahead and leave this matter to you."

Charlie Schaff had no choice but to agree, and went to Smith Capital in the afternoon.

Not surprisingly, Charlie Scharf met many of his Wall Street acquaintances in the parking lot of the Smith Building.

For example, Goldman Sachs, Lehman Brothers, Morgan Stanley, Bear Stearns and other companies have sent people here.

Still high-level.

And some other high-level Wall Street firms.

Charlie Schaff saw these people, these people saw him.

No need to say it directly, everyone knows each other's real purpose for coming to Smith Capital.

Soon people gathered together and chatted quietly.

Chatting with Charlie Schaff was the head of fixed income commodities at Goldman Sachs, Lold Blankfein.

"Charlie, it's great to have you back at Merrill Lynch."

Head of Fixed Income Commodities at Goldman Sachs, greeting Charlie Schaff.

What happened inside Merrill Lynch is no secret on Wall Street.

Everyone knows about Charlie Schaff's experiences and abilities.

If Charlie Schaff hadn't signed a non-competition agreement, he could only work for Merrill Lynch within ten years.

During the time when Charlie Schaff was fired, he had already been absorbed by other Wall Street firms.

It's just that those Wall Street companies are unwilling to bear the heavy fines for violating the competition agreement.

Charlie Schaff had only been out of work at home for two months before being pulled back by Merrill Lynch.

Charlie Schaff smiled bitterly: "Laurd, it's not suitable to talk about this here. To be honest, I'm here to know about Smith Capital Private Equity."

"Who isn't?" Lold Blankfein said, "Paulson asked me to come because he wanted to know about this."

Charlie Shaf looked around, and he said softly:

"Then everyone's purpose seems to be the same. Look, so many people are actually here for the 500 billion."

The former CFO of Merrill Lynch estimates that these Wall Street companies are the same as David Komansky.

Both sides do not believe that Smith Capital can complete a private placement of 500 billion US dollars.

But at the same time, every company is afraid that if it is true, they will not eat meat.

Those CEOs and chairmen who are the bosses are embarrassed to come.

They sent them, middle and high-level personnel who had contact with Smith Capital.

Thinking about it, Charlie kind of wanted to laugh.

"What to do now?" Lold Blankfein asked Charlie.

Lloyd Blankfein was actually visiting the Smith Capital headquarters for the first time.

The reason why he was sent here was that Paulson wanted to train Lold Blankfein.

Lauder Blankfein is one of Paulson's promising successors.

The second is David Mellon, the current CEO of Smith Capital, who once worked under Lauder Blankfein.

The relationship between the two is pretty good, which made Lauder want to grab some favors.

Kind of like why David Komanski sent Charlie.

Charlie Schaff looked around, there were more than [-] Wall Street executives similar to himself and Lloyd Blankfein.

Charlie simply said: "Why don't we make an appointment, let's meet David Mellon together?"

Lloyd Blankfein agreed.

The two parted ways to connect with other Wall Street executives.

It took ten minutes.

More than 30 executives from different Wall Street companies reached a unity in front of the Smith Capital building.

That is to hold together and ask David Mellon together.

Confirm the specific news of this private placement of Smith Capital.

It was just when they had just gathered and walked into the building of Smith Capital.

Charlie Schaff saw with sharp eyes that a large number of people, accompanied by David Mellon, were walking outside talking and laughing.

Charlie Schaff's heart skipped a beat, because beside David Mellon, he saw Munger of Berkshire Hathaway; Lincoln of PNC Financial Services Group; Bede of Citibank; Fidelity Peter at the firm; Peron at Wells Fargo.
Immediately afterwards, Charlie Schaff and other Wall Street executives who hadn't had time to get in.

Heard David Mellon's announcement at the door.

That is the seventh private placement of Smith Capital, and the unprecedented 500 billion single private placement fund is real.

This private equity fund has not yet been announced to the public, and no formal fundraising has begun.

But it has already been subscribed for $325 billion.

That leaves a balance of $175 billion.

Once the news was announced, there was an uproar in the audience.

(End of this chapter)