King of Capital

"I think everyone here knows Michael Jordan."

Xie Jingxing stood on the podium and said thoughtfully: "In 1989, the Bulls and Cavaliers played a life-and-death battle in the first round of the playoffs. Both sides gave their all. In the last two and a half minutes of the game, the score changed six times."

"Bulls coach Doug Collins was sweating and yelling on the sidelines, and Jordan made a shot with six seconds left to go to the end of the game, giving the Chicago Bulls the lead."

He unbuttoned his suit jacket and paced with his head down: "The timeout is over and the game continues. The Cavaliers player made a near buzzer beater with three seconds left."

"As the whole world knows, the Bulls had one last shot left, and head coach Collins had a sudden idea to design a tactic for the backup center to shoot. Then Jordan knocked the tactical board out of his hand and said: Give me the fucking ball!"

Give me the damn ball, and Jordan hit his first playoff buzzer-beater, and from then on he won the crown of His Majesty the Airplane.

People call this ball 'the shot'.

“This ball game is three years older than I am.”

Xie Jingxing stopped and raised his head, folded his arms in front of his chest and raised the microphone, chuckled and concluded: "I often feel sorry. If my career was in that era, Jordan would imitate my sentence pattern - Give me the fucking money."

There was a slight commotion at the scene which soon turned into friendly laughter. The female financial director from COSL's face changed, and she quietly returned the microphone and sat back in her seat.

Maybe according to Collins' tactics, the backup center could have made that buzzer-beater, but they can't always make every buzzer-beater, like the one in 'DJI Dajiang'.

This is the meaning of Jordan's existence and the value of Xie Jingxing.

Of course, compared with special funds that pursue a high floor, blind pools have equally obvious shortcomings. Due to the opaque financial operations, LPs often have no idea where they lose or earn, which leads to many pitfalls.

Obviously the invested projects made a fortune when they went public, but the fund incurred losses when it was redeemed at maturity.

"Regarding this point, Xiyou has been the venture capital institution with the highest financial disclosure penetration in China since its inception. I will not discuss it in detail today."

Xie Jingxing briefly passed it over, controlling the situation and guiding the pace to continue answering questions.

Several state-owned enterprise leaders who were interested in competing for the cornerstone LP had different expressions and were helpless. This was the industry detail that the female financial director did not understand.

Grapefruit Capital has always had the highest degree of disclosure, not because Xie Jingxing is kind-hearted and humble, but because he has another family office, Taihe Capital.

Suppose the former encounters a good project and deliberately does not invest in it but leaves it to the latter; or if the latter invests first in the same project and the former invests later to raise the valuation, this kind of operation of lifting the sedan chair is called "rat trading" in the secondary market, and those involved in criminal activities will be sent to jail directly.

The compliance boundaries in the venture capital market are relatively broad, so everyone can discuss and jointly determine the boundaries.

Grapefruit Capital maintains highly penetrating disclosures, and Xie Jingxing personally makes a high-proportion subordinated investment in each of its funds. The most important thing is that it can really make a lot of money.

How can they control Meituan, participate in the investment in Alipay, and grab the market share of DJI? Everyone has a scale in their hearts, and after weighing the pros and cons, they just turn a blind eye and accept it.

Otherwise, it would not be the turn for an outsider to come up with a solution. His peers in the industry would have already set up a platform to criticize and discredit him, and the opacity of the blind pool fund itself would be secondary.

“Thank you for attending this fundraising briefing. We will officially open the subscription channel in a week.”

Faced with a fund manager who openly shouted to LPs to give me the money as soon as possible, we stopped talking nonsense and quickly answered some technical questions. The fundraising briefing meeting ended at lunch time.

Xie Jingxing arranged for Yan Wenchuang to accompany guests in the hotel restaurant. He and Tang Man took the four potential cornerstone investors to a hotel suite for in-depth communication to decide whose money to take.

"Oh, abalone risotto, very rich."

The accompanying team was sent to the restaurant. The old leader of Suzhou Yuanhe took up the lunch box and opened it, happily livening up the atmosphere.

Xie Jingxing glanced at Tang Man: "Fill your stomach so you can work better."

"Seeing is believing. Xiyou pays attention to work efficiency in her bones. No wonder she can always get high-quality projects first. I felt it firsthand today!"

The leader of the CCB team looked to be in his thirties. He had neither the gangster spirit of his market-oriented peers nor the profound tone of his state-owned peers. He was half trying to make up for her and half expressing his inner feelings.

Tang Man's face was gloomy. She gritted her teeth and said to herself that she would ask which idiot in the company was so greasy afterwards. Business entertainment is inevitable in the financial industry. Who is he trying to cover up by spending a few hundred yuan on a box lunch?

The two leaders of Guangzhou Yuexiu Capital and Ping An Capital were extremely upset that the partners responsible for fundraising were not allowed to participate in the negotiations with the cornerstone LPs. It was outrageous that they were treated as outsiders.

“In fact, I was quite surprised by this briefing.”

The old leader of Gusu Yuanhe took the braised pork in the lunch box and put it aside, and casually started a conversation: "Xiyou didn't immediately bring up the equity merger and acquisition investment business."

"The overall strategic plan is for five or ten years, and we don't have the energy to get involved in this business in a short period of time."

Xie Jingxing remained calm, thinking that one must eat one bite at a time, and it was impossible to complete the letter to investors overnight.

Yuexiu Capital's leader said with a slight accent: "This year's capital shortage has catalyzed the M&A market, especially the high growth of overseas M&A. The cyclical momentum will continue in the future. If you can find the right entry point, it will be very good."

"Yes, Mr. Xie is persuasive in this area. The WhatsApp acquisition case is still a training case within Ping An." Ping An's leaders also hold different views.

With the loosening of monetary controls, overseas mergers and acquisitions by local enterprises began to gain momentum the year before last, became the mainstream last year, and reached a peak in January this year when Qingdao Haier announced that it would acquire General Electric for US$55 billion.

Fluffy flowers gradually desire charming eyes.

As early as 2008, Haier had plans to acquire this competitor, and it took five years to gradually adjust and integrate into the other party's corporate management structure. In 2013, Xie Jingxing returned to China, and Tang Man threw Haier's financing plan to him at Juntai.

The company strategically introduced KKR to acquire overseas M&A operation resources, and after another three years, it finally came to fruition.

Some people saw that it took a full eight years, but more people only saw the title of creating the largest overseas M&A record in the local home appliance industry and the capital market expectations of positive stimulus.

Wanda, HNA and many traditional companies followed suit.

In particular, the two leaders of these two companies went to Harvard for lectures at the same time. The former made a famous saying: I can invest the money I earned with hard work however I want; the latter taught students that you are stupid if you say HNA has high debt, because I can easily raise tens of billions of funds in the domestic capital market!
The old leader of Suzhou Yuanhe thought that Xiao Xie would be unable to wait and have a taste of it while it’s hot, the leader of Yuexiu Capital advocated taking it slow, and the leader of Ping An believed that Xiao Xie would definitely have a taste of it, sooner or later.

"There is no M&A direction for raising US dollar funds this year." Xie Jingxing put down the lunch box and gave an affirmative answer again.

After repeated attempts, the result is clear. There is nothing more to say. Just grab whichever of the three funds in front of you you like!
The old leader of Gusu Yuanhe put down his chopsticks slowly, coughed lightly, and showed his strategizing temperament.

"Mr. Xie, to be honest, I did a background check before I came here, a background check on Yunhe Logistics."

The leader of Guangzhou Yuexiu spoke first: "The three industrial parks planned by Yunhe in Guangdong are very consistent with the industrial planning of our province's logistics hub. The relevant industrial guidance funds of various cities are being established, and Xiyou's market-oriented fund is particularly rare." "I won't talk about connecting with rich industry resources today. Our sincerity and support are expressed by our investment, 3 billion, and the management fee is 20% of the actual capital."

Damn it? !
As the old leader was about to retire and move into the Taihu sanatorium, the beautiful and unworldly mood in his heart instantly disappeared, and he fell back into the world of bumps and potholes.

Due to its geographical location, Guangdong's logistics industry is the most competitive in the country. Yunhe acquired three logistics parks in two phases by sheer force, and will have to fight hard for the rest of the year with local gangs.

On the contrary, Guangzhou Yuexiu naturally expects this market-oriented 50 billion yuan logistics industry fund. Connecting with industry resources is a matter of course, but it is really outrageous to pay the actual capital contribution and management fees.

As we all know, state-owned assets have always advocated a smooth and steady investment curve. To put it bluntly, it means spending little money to achieve great things. To put it bluntly, it means not seeking merit but avoiding mistakes. If you can avoid spending money, don't spend money...

"Well, I think so. Xiyou wants to raise 90 billion yuan to allocate to three funds: seed, hard technology venture capital, and logistics development."

After a brief silence, Ping An's leader was the first to come to his senses and politely suggested, "Then can we draw up a total investment ratio, and how to divide it depends on the situation?"

"Yes, quotas are more conducive to the flexible adjustment of grapefruit!" the young man from China Construction Bank said with a big voice.

Insurance and banking, the two companies do not have the task of guiding the industry. They mainly focus on having a lot of money and a high degree of marketization. All three funds are interested in sharing the profits!

If the old leader didn’t say anything, he would be dead. He immediately pursed his dry lips and said, “Yuanhe and Xiyou are old friends. We can guarantee to pay the capital first and reduce the burden on Xiyou.”

Read the error-free version at 69shuba! 6=9+shu_ba is the first to publish this novel.

In fact, similar to Yuexiu, Yuanhe wants the cornerstone LP share of the hard technology venture capital fund.

The country bumpkin from Anhui gritted his teeth and stomped his feet to win the first prize of the first 100 billion level market-oriented guidance fund. At that time, Director Yang, who was bold enough to take the lead in introducing Xiyou, waited for two or three years to come up with a few good projects, and it was not difficult to shout "Secretary Yang".

The city of Gusu, with its profound heritage and long-standing culture, should also serve the people wholeheartedly!
However, the three enemies in front of him were bidding up the price, not giving him the chance to talk about his feelings and ideals, so he had to follow the trend and talk about the benefits first.

"Xiao Xie, Gusu has feelings for you. You can say that we are your in-laws." The old leader shamelessly played the emotional card again.

"Your statement is very accurate. Yuanhe has always spared no effort in supporting Xiyou. We will always remember this."

Tang Man expressed her gratitude on behalf of the smiling face, for the strong support of Suzhou Yuanhe's first RMB 30 billion fund, including the earliest opportunity to invest in SF Express and its transfer of investment shares. There is indeed a story, but I can't go into details...

The four sponsors spoke enthusiastically and expressed their opinions. Xie Jingxing remained silent and was evaded by her polite words. The atmosphere unconsciously became a little subtle.

Just as I overheard the second-generation Cai from his teacher's outrageous remarks before the meeting this morning: No matter what, everyone is an LP. It is true that you can make money, but you are not the only one who can make money in this market.

Sequoia, Hillhouse Capital, and CDH Investments each have RMB funds.

"I was doing an internship at Temasek during my senior year. When we talked about salary income, I asked my instructor why the global private equity industry generally charges 2% + 20%?"

Xie Jing Xing sat up straight and started to tell his own story: "At that time, he was stunned by my question."

"The next day, I asked my boss about this. He said that the usual practice in the oil and gas industry is that the investor gets three-quarters of the profits from an oil field, and the contractor gets one-quarter. In the late 70s, KKR was the first to copy and adopt this idea when it was founded, and it later became a convention."

He looked at the four high-quality LPs in front of him sincerely and threw out an idea he had been considering for a long time: "Can we break the routine and waive the 2% management fee in exchange for a total of 40% of the investment income share?"

"..."

The old leader stared at him with his eyes fixed, and the young man from Jianyin couldn't help but change his sitting posture and lean forward, causing the leather sofa to creak.

The fund management team relies entirely on performance. If they make money, they eat steak; if they make money, they eat lobsters; if they don’t make money, they eat shit.

It is obvious that pressure is proportional to motivation. This is how it should be for high-risk, high-return financial businesses such as venture capital. How can one talk about responsibility to LPs while earning high fixed management fees without doing anything?
Why do public funds pursue relative returns? They suffer losses every year and still have the nerve to stand on the stage and shout loudly?

Only fixed management fees are charged without performance sharing. The larger the scale of management funds, the more sufficient the management fees. As for the profit or loss of the leeks, it doesn't matter at all. Some invest hundreds of thousands and some invest hundreds of dollars.

No matter how much loss we can make, it is our obligation to promote economic growth and redistribute social resources.

Wouldn’t the Longjiang pork trotter rice in your bowl taste better when you see those highly educated and good-looking fund managers eating steak and drinking red wine in the Alps?
Just consider it as paying for the emotional value.

Unlike private equity, which has a starting investment of tens of millions, cornerstone LPs often have hundreds of millions or even billions of dollars. They really cannot afford the emotional value and can only beg for food on their knees.

"Such fund management fee structures are well known in the market. A 40% share is neither too much nor too little. What do you think of fine-tuning the share ratio based on actual investment conditions and the quotas of each fund?"

The four sponsors did not bother to hide their feelings, and quickly exchanged glances to barely unify their front. They all turned into elementary school students and sat upright, staring at Xie Jingxing with the same fiery eyes they looked at their wives when they first got married.

For them, it means saving hundreds of millions of yuan in fixed costs every year, and for Xiyou, the 15% profit share can earn more, provided that Young Master Xie is certain that Xiyou will make money, a lot of money!

We have to admit that this is worthy of the industry leadership, from the WhatsApp acquisition to the market-oriented 100 billion industry guidance fund, stock market crash rescue to creating domestic short-selling records and exposing the largest financial fraud case in history.

Dare to be the first in the world and you can be admired as a towering mountain.

"Mr. Xie, I have one last question for you. If venture capital is an investment in the future, and a complete industrial ecosystem must already exist, is it a paradox that you are trying to build a platform ecosystem investment strategy?" The young man from China Construction Bank changed his name and spoke solemnly.

"At present, the ratio of front-end and middle-back-end employees in Xiyou is 1:2. This ratio will continue to increase, and more middle-back-end employees will take charge of post-investment management work."

Xie Jingxing answered in spirit: "I think the operation trend of the venture capital industry will be to de-elitise. There will be fewer and fewer cases of individuals washing the entire market and betting on the future. Industrial investment in a certain industry will create the future through batch screening. This is the platform ecology I know."

“Do you mean that in the future the top institutions will take over everything, and small and medium-sized institutions will disappear?” The old leader felt offended.

"Now the top is taking over."

Xie Jingxing spread out his hands, not knowing why, and the old leader remained silent.

Last year, Xiyou raised 90 billion yuan in a single fund, setting a record for RMB fund raising. This year, it has once again attracted the market's siphoning effect. It seems that it has raised billion yuan, but in fact, there are at least to billion yuan waiting.

Especially after the management fee exemption was announced, small and medium-sized venture capital institutions could announce without shame that their fundraising plans would be postponed for the next half month to a month, and the competition among LPs became more intense...

"Grapefruit will confirm the results and notify you as soon as possible. The subscription agreement will prevail. Thank you all for coming today." Xie Jingxing politely sent the four people to the door of the hotel suite.

The young man from China Construction Bank frowned and looked back again and again. He was obviously the most representative of personal heroism, but he pushed the level of quantitative trading under his company to the top three in the country and advocated the future direction of the group's mechanical private equity investment.

I was so imaginative today. It was worth the trip today. (End of this chapter)