Wind Rises 2005

Chapter 585 Private placement, private placement

VC, PE, LP and GP are all common terms in the venture capital circle.

And [Dafeng Capital] has not been a truly qualified private equity fund since its establishment, even though it has invested in so many projects.

Because all its funds came from Ma Liang's personal investment and no external funds were raised.

At best, it can only be regarded as a venture capital institution (Venture Capital, VC), and it is still a grass-roots team.

Even though Jennifer, a top elite on Wall Street, serves as CEO, in essence [Gale Capital] has still not completed all the procedures that a formal VC institution should have.

This process refers to fundraising, investment, management, and exit, and [Dale Capital] is still only in the investment and management stage.

Although there are so many projects invested in and the prospects are very good, no project has successfully exited yet, let alone the most critical link of fundraising.

Of course, this is also related to Ma Liang's long-term optimism about the projects he invested in, and he wants to wait until the returns are greater before cashing out.

But as a venture capital institution, it is indeed not operating properly.

It is estimated that it is precisely because of this that European capital tycoons are eyeing [Gale Capital] and even want to make an investment.

Don't think that venture capital institutions cannot be invested. In fact, VCs from various countries are the ones who receive the most investment in the venture capital circle.

It's just that investing in VC and investing in companies are two different things, and they cannot be generalized.

When investing in a company, the purpose is usually to obtain part of the equity in the hope that the value of the equity in the invested company will increase exponentially before selling and cashing out, thereby making a profit.

Investing in VC generally refers to investing in private equity investment funds initiated by VC.

Those who invest money in VCs mainly include PE investment institutions, government agencies, banks, insurance trusts, asset management companies, guidance funds, FOF, universities and foundations, sovereign wealth funds, family funds, public pensions, etc.

While Jennifer was on a business trip in Europe, she met many capital bosses in PE investment institutions, trust funds, asset management companies and other fields.

You must know that these big guys are the ones who truly stand at the top of the wealth pyramid in various countries, and they are also the ones that all walks of life need to worship and fawn over.

Because in the hands of these big guys, they often control tens of billions of dollars in wealth.

Under normal circumstances, top capital tycoons will invest money into private equity investment funds launched by VCs as limited partners (LP).

As a general partner (GP), VC is the specific manager of the private equity fund and is responsible for all aspects of the fund's strategy, investment, management and exit.

So from this point of view, the five to six VC tycoons in the venture capital circle are actually the stinky younger brothers, including Ma Liang.

Even though he invested in Twitter to become a god, he also became famous in the venture capital circle.

But in the eyes of real capital bosses, they are just new to the eyes. After all, the venture capital circle has never been short of amazing and talented people.

No matter how evil Ma Liang is, there is no such figure in the history of global investment.

If Twitter hadn't been too eye-catching, Gale Capital's current performance wouldn't have been enough to make European capital tycoons so interested.

After all, putting money in your pocket is what counts. At present, [Dale Capital] has not even exited a single project, let alone the so-called return on investment.

When top capital tycoons invest money in VC private equity funds, in most cases they will decide based on your investment performance.

If you really want to talk about it, Ma Liang’s [Dafeng Capital] currently has no financial returns in a substantial sense.

The only projects that can be taken advantage of at this time are Twitter and [Dajiang].

As for other projects that have been invested, most are still in the development stage and are far from ready for harvest.

It can only be said that it is true that Twitter is too outrageous, otherwise those top capital tycoons would not have the idea of ​​[Gale Capital] at this time.

After all, [Dale Capital] has never launched its own private equity fund at this time, let alone raised funds from outside.

Because raising funds is not an easy task, as you can see from Chai Daguan.

He has been in the world for so many years, and he has finally raised the first phase of Tianhao Capital's private equity fund without being a showman.

The reason why Ma Liang only used his own money to invest in the first place was because he wanted to keep the maximum benefit in his own pocket.

The second reason is that it is not easy to raise funds when you have no reputation and no results.

But things are different now. With the incredible rise of Twitter, which is about to kill Facebook, [Gale Capital] has naturally been targeted by interested people. Although we have not been able to realize the cash-out of any project, the cases we have invested in have really made many top tycoons applaud.

As the saying goes, "A person's name is like the shadow of a tree." If Ma Liang goes out to raise funds now, it will definitely be much easier.

No, before he could launch a private equity investment fund, someone came to him.

Listening to Jennifer's report, Ma Liang couldn't help but think about it. It seemed that it was time to play with real private equity funds.

Otherwise, if you always use your own little money to invest, you will always feel a little timid.

There is no way, who knows that his capital accumulation is far from enough, and there are so many projects he wants to invest in, so it is normal for him to be stretched thin.

To solve this problem, launching a private equity investment fund is the only way to go.

After all, a person's ability is limited. Borrowing chickens to lay eggs is the real code of wealth. This is how all the top venture capital institutions in the world came to be.

Even super investment tycoons such as Buffett and Soros have established various private equity funds to control more capital.

As GPs, VCs do not work for LPs in vain. Not only can they charge private equity fund management fees every year, but they can also withdraw 20% of the fund's excess returns as their own returns.

In other words, the larger the scale of the private equity fund launched by VC, the more successful the projects invested by the fund, and the greater the income as a GP.

And in the specific process of investment, there are more methods to achieve various arbitrage.

Therefore, launching a private equity fund is absolutely beneficial and harmless. Unless you completely lose the private equity fund, you may face some lawsuits.

But even so, there are still many VC big guys who are still happy to do it and launch various private equity funds one after another.

Not only is the frequency getting higher and higher, but the size of the funds is also getting bigger and bigger, sometimes reaching hundreds of millions of dollars.

Therefore, for Ma Liang, it is also time to formalize the operation of [Dafeng Capital].

With a strong track record of investing in Twitter, and projects such as Zynga being exposed one after another, it shouldn’t be difficult to raise funds.

I dare not say anything else. It is definitely not a big problem to raise a billion US dollars for the first phase of private equity funds.

Even Shen Nanpeng and Zhang Sanshi in China can now raise US$[-]-[-] million when raising funds. There is no reason why Ma Liang cannot reach his goal of raising US$[-] billion.

At this time, in terms of reputation in the capital circle, Ma Liang is much more famous than those two.

If one billion US dollars can be successfully raised, then [Wind Capital] can do even more, especially under the influence of the subprime mortgage crisis, it can pick up a lot of leaks.

Thinking of this, Ma Liang couldn't help but feel hot in his heart.

He quickly ordered towards the other end of the phone: "Jennifer, it seems it's time for us to set up our own private equity fund!"

"Oh my god, dear BOSS, you finally have the idea.

I have suggested to you many times that you should establish your own private equity fund earlier. But you must not listen. There are so many venture capital institutions in the industry, how can anyone use their own money to play? "

Jennifer was shocked when she heard this. She didn't know how many times she had persuaded her boss before.

But Ma Liang always made various excuses and did not agree to the relevant proposals, which made her, a top Wall Street elite, handcuffed and unable to exert her greatest abilities.

You must know that in the process of raising funds, beautiful women have the most advantage.

Not to mention that Jennifer itself has a lot of network resources on Wall Street, especially those with big investment banks.

When she heard that Ma Liang had agreed to establish a private equity fund for the first time, she couldn't be happier.

Ma Liang was quite embarrassed when he heard this, and replied sheepishly: "Okay, I'll make a detailed plan after you return to New York.

If possible, go back and recruit more people to prepare for fundraising. "

Private placement, private placement...

After saying this, Ma Liang couldn't help but sigh to himself. He didn't expect that the more he played, the bigger he got. He really didn't want to do this at first.
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  PS: I have been suffering from severe insomnia recently and my schedule is wrong. The next chapter will be a little later, sorry.

(End of this chapter)