Winning the new financial era

Chapter 207
"Well, I will hand over my shares of Yimin Wangjin to you for management.

Among all my assets, this part is the most liquid.

Based on the current market value of 55 billion yuan, the value is about 26 billion US dollars.

In addition, I also pledged part of the equity and borrowed 5 million US dollars.

These assets and debts are handed over to the family office of Yimin Wealth Management, and you are here to help with some investment management and debt planning. "

Zhang Yida thought about it and decided to support his company.

Family offices are divided into two categories: "single family office" and "commercial joint family office".

A single-family office means that the rich set up an independent institution, hire investment managers, and manage the family asset portfolio by themselves, rather than entrusting financial institutions to manage it.

It can be regarded as a private company with special functions for the rich.

The U.S. Securities and Exchange Commission (SEC) defines a single-family office as "a legal entity established by a wealthy family to manage wealth, plan wealth, and provide other services to members of the family."

The SEC estimates that there are 2500 to 3000 single-family offices active in the United States, managing about $1.2 trillion in assets; there are about 1500 single-family offices in Europe.

Those who run single-family offices are generally the super-rich among the super-rich.

The family office is considered an expensive tool. To set up a "family office" whose income can cover the cost, the assets under management should not be less than 5 million US dollars (about 31 billion yuan at present).

Liquid assets of this magnitude are still a relatively high threshold for the first-generation entrepreneurs whose assets are mostly deposited in the enterprise.

Even with sufficient capital, some families may wish to start small.

Regardless of the scale of assets, starting a family office itself is a huge and complicated project, which requires a lot of time and energy for the family, and choosing to join the existing "joint family office" is often the starting point for the family to try "home office" .

In addition, the second biggest advantage of the joint family office is the "economy of scale", making money together.

The super rich choose to join the joint family office, which can reduce operating costs through shared service platforms and investment teams.

Conversely, a joint family office with multiple family clients can attract better investment managers, family consultants, legal experts and other professionals to join.

Since different families have in-depth experience in multiple industries and a broader business network, the United Family Office may obtain more investment opportunities;
At the same time, various "inside information" and "secret information" are also easier to share among different families through a joint platform.

Of course, there are advantages and disadvantages. While gaining many conveniences, choosing to join the "joint family office" also means that the family will lose some privacy, and cannot enjoy complete customization and absolute control.

Therefore, powerful families like to set up a "single family office."

Those who are weaker, or are not familiar with this field, and those who want to test the water a little, basically choose "joint family office".

Zhang Yida will definitely not choose a joint family office for a long time. When he thinks about it, when his business is stabilized and he needs to consider inheritance and value preservation, he will initiate the establishment of a "single family office."

The reason why I agreed to participate in the "United Family Office" of Yimin Wealth is not only to serve as a platform for my company, but also to test the water for the first time in this field.

Ding Siyao was not surprised at what Zhang Yida said, he just mentioned it casually, no matter how serious the other party is, he would not invest all his assets in this family office.

After all, Mr. Zhang is still young, and he is of the first generation, so he is not a particularly precise customer.

The precise customers of Yimin Wealth are the "second generation", the kind who want to take over from the family.

It has been nearly 40 years since the reform and opening up, and a large number of people have become rich.

Many first-generation founders are about to retire, and they are very worried about "succession".

The emergence of the family office is to help the other party complete the inheritance of wealth and smoothly hand over the shift.

"Okay! With Mr. Zhang taking the lead, I believe our multi-family office business will be much easier to develop.

In this industry, gaining the trust of customers is the most difficult.

At present, this trend has just become popular in China, or in other words, it has not long been rich, and there is not much demand for it.

Unlike European and American countries, some families have been rich for hundreds of years, and their family offices have developed very mature for several generations. "

Zhang Yida was willing to hand over part of the assets to his own management, and Ding Siyao was already very satisfied.

"How do you plan to start your business at the beginning?" Zhang Yida asked again.

“Family offices are classified as lite, hybrid and full-stack.

A streamlined family office is mainly responsible for family bookkeeping, taxation and administrative management.

Substantial investment and consulting functions are mainly undertaken by external private banks, fund companies (VC/PE/hedge funds), family consulting companies, etc. through outsourcing.

Some domestic companies have set up investment development departments or strategic investment departments to invest outside their main business, which can be regarded as the early prototype of a streamlined family office.

Hybrid family offices outsource non-strategic functions that are closely related to family preferences and characteristics.

Like Mr. Zhang, your main business is the Internet and finance, and this part of the investment can be completed by the family office.

Like investing in art collections outside of the main business, entertainment travel can be outsourced.

The all-round type is powerful, including investment, risk management, law, taxation, family governance, family education, inheritance planning, charity management, art collection, security management, entertainment travel, global property management, butler service, etc. All services must be satisfied .

We are currently unable to build an all-round family office, we can only start with a streamlined and hybrid family office.

Because we are backed by Yimin Wealth, Huayi Capital, Ruixiang and other partners, I think we can start from a hybrid.

Focus on financial asset investment and outsource other eating, drinking and entertainment. "

Zhang Yida understands that the three types of family offices, from low to high, can be roughly regarded as:

"A confinement lady who only helps you take care of your children";
"In addition to taking care of the children, a nanny who also buys vegetables and cooks";
"In addition to taking care of the children, she also cooks, tells stories to the children, and is a full-time mother who puts the children to sleep."

"Well, now that you've considered everything, let's start making preparations!

Family offices are not very popular in our country, but the market potential is great.

Our country is second only to the United States in the number of billionaires.

This is a market worth tens of trillions. When Yimin Wealth goes public, it can pack some concepts and tell stories to Wall Street. "

Zhang Yida knew that it would not be easy for this multi-family office business to develop.

But if Ding Siyao wants to do it, let her do it.

The golden development period of this business has not yet come. China’s current generation of founders is basically born in the 50s, 60s, and 70s.

In the next ten years, there may be a wave of market dividends.

"Then what is the name of our joint family office?" Ding Siyao asked again.

"The family of Zhongming Dingshi, the family of poetry and book hairpin tassels. The family is passed on from generation to generation, and it is endless.

Today's wealthy families still want to flaunt their culture and family heritage.

Let's name it "Xinhuo·Family Office", and then make a logo of an ancient clock and an ancient tripod.

We want to pass on the concept of "serve the children and grandchildren of every customer well, and the wealth will be passed on from generation to generation."

For many founders, the inheritance of wealth is more important than anything else.

You can make more publicity in this direction.

A family business is not the same as family wealth, and there are three caves for cunning rabbits.

When the development of the enterprise is still going well, it is necessary to consider wealth inheritance and diversified investment, diversify investment, and resist various unpredictable risks. "

Zhang Yida doesn't need to worry about these things now, he is only 20 years old.But some entrepreneurs are five or sixty years old, and it is time to think about future generations.

"Okay, I'll start promoting it to customers right away."

Ding Siyao felt that what Zhang Yida said was very reasonable. The family office must make "inheriting wealth and benefiting future generations" its main selling point.

The founders themselves are all dragons among men, and there is no need to teach others how to manage the company and invest in financial management.

But it is easy to fight the country, but it is difficult to sit on the country.It is impossible to guarantee that every second generation has outstanding ability, can succeed smoothly, and manage the family business well.

Compared with general family trusts, the services that family offices can provide are undoubtedly richer.

……

"President Tian? It's me, Ding Siyao."

"Oh, Mr. Ding, hello, what's the matter?"

Tian Desheng is a manufacturing tycoon in Jiangnan Province. He owns an A-share listed company and is worth a lot of money.

At the same time, he is also a major customer of Yimin Wealth, ranking in the M3 customer level.

Yimin Wealth divides customer levels into M1, M1, and M2 according to the investment amount of one million yuan, ten million yuan, and one hundred million yuan.

Tian Desheng is one of the few M3s in Yimin Wealth, and Ding Siyao has dealt with him several times.

Knowing the strength of this boss, he is worth more than 30 billion yuan in the shareholding of listed companies, and has privately invested in many companies and properties.

"President Tian, ​​that's right. Didn't I mention the family office to you before?
The Xinhuo family office of Yimin Wealth will officially open the day after tomorrow, so I would like to invite you to our opening reception. "

Ding Siyao said with a smile, Tian Desheng is very suitable for the admission requirements of the family office, and she really wants to attract him to join the salary.

"Oh. This matter! But I'm going on a business trip the day after tomorrow!

I guess I won't be able to attend this reception.Mr. Ding, I appreciate your kindness. I'm really sorry that I can't come. "

When Tian Desheng heard about Ding Siyao's family office, he had little interest.

I'm only in my forties, and it's the age when I start to think about wealth inheritance, it's too unfounded to worry about.

To deceive myself to attend the reception is mostly to let myself invest.

I don't want to go by myself!

Since Ding Siyao is also the CEO of a big company, and he invested 1 million in Yimin Wealth, he didn't directly refuse, but made up a reason to give both parties a step down.

"Oh, that's it! The guests participating in this reception include Mr. Zhang Yida, Mr. Liu Yonghao, Mr. Lei Jun, Mr. Shen Beipeng...and other elites from all walks of life.

I originally wanted to recommend Mr. Tian to you.It would be a pity if you were too busy.I can only look for a chance next time. "

Ding Siyao said with a smile on her face that this reception was of a high standard, and there were many big-name guests. She believed that as long as she was not really too busy, she would not refuse this good opportunity to accumulate contacts.

"Oh, Liu Yonghao, Lei Jun and the others are coming too! How about this, I'll coordinate the time of the business trip, and come to join in the fun the day after tomorrow."

Tian Desheng changed his mind without blushing or panting. After so many years in business, he has already developed a good skill.

How could he be absent from such a grand event.

Although he is also a big boss with a lot of money, but it depends on who he is compared with, compared with a billionaire, he is still far behind.

If there is an opportunity to get acquainted with a big business man with a bigger wrist, he can't miss it.

Wouldn't it be flattering to talk about some kind of cooperation.

　Make up for yesterday!
　　
　
(End of this chapter)