Winning the new financial era

Chapter 208

"Today is the day when the Xinhuo Family Office was established. Thank you very much for coming..."

In a private club outside the capital city, dozens of super-rich people and elites from various industries sat under the stage, watching Ding Siyao, who was dressed as a professional female elite, give a speech on the stage.

Ding Siyao was dressed in an off-white haute couture suit, with her long black hair tied into a bun, watching a group of bigwigs with a combined worth of over one trillion yuan staring at her, and she was also a little nervous when she came on stage to give speeches every now and then.

"The earliest modern family office appeared in the Rockefeller family in the late 19th century.

Today, the family office has already become the standard configuration of rich families in Europe and America.

But in China, this has always been a hidden and niche field.

But the family office is far less mysterious than imagined. To sum up, the main function is to be responsible for the governance and management of the four major capitals - financial capital, family capital, human capital and social capital.

Financial capital, centralized management of family wealth as a whole, brings together family financial assets distributed in multiple banks, securities companies, insurance companies, and trust companies into one family financial statement, and implements investment managers through selection and supervision. Effective investment performance appraisal to realize the optimal allocation of family assets..."

Shen Beipeng glanced at Ding Siyao who was speaking on the stage, and said softly to Zhang Yida: "Yes! This little girl is growing up very fast! Did you come up with the idea of ​​the family office or did she come up with it?"

Zhang Yida glanced at Shen Beipeng, and said, "What's the matter? She suggested it. You are worth so much, so you can consider investing a little in your salary."

Shen Beipeng smiled and said, "It's rumored outside that I'm worth tens of trillions. You don't think the same as them, do you?"

Zhang Yida knows this trick. Heishan Capital's investment is too successful, and it claims to have bought half of China's Internet.

The combined market value of the domestic companies in which he holds shares is in the tens of trillions, and some people on the Internet say that Shen Beipeng is worth so much.

As one of the four founders of Ctrip, Shen Beipeng had some shares in Ctrip when he started his business in the early years.

Later, I faded out of Ctrip and entered the venture capital circle, and these shares were cashed out and almost diluted.

Now the majority of his assets still come from the fund dividends of Blackshirt Capital.

Shen Beipeng's exact net worth, Zhang Yida's guess is not accurate, but at least US$20 billion.

"It's not easy for us to do small business! After all, Blackshirt Capital is also a shareholder. You can invest [-] to [-] million U.S. dollars in assets to support it.

I plan to send Yimin Wealth to the market next year, and pack more concepts into it before listing.

You don't have to consider wealth inheritance in the future.Traditional industry bosses don’t understand family offices, how can you, the most prestigious venture capitalist, not understand?

You start with a transitional multi-family office for a few years.If you want to set up a personal family office in the future, don’t you have experience? "

Zhang Yida began to pull Shen Beipeng into the car, with one set of reasons, but Shen Beipeng was speechless. He said: "All right! Invest 1 million US dollars in assets, but you have to check it carefully. This is my pension." money."

"Don't worry, I put 26 billion US dollars in assets, just want to try the operation mode of the family office."

Zhang Yida is quite at ease. Yimin Wealth has been in operation for two years, and there is no doubt about its professionalism.

If he loses money, he will admit it.How can investment be without risk.

"In the past [-] years of reform and opening up, the domestic economy has been rising steadily, and a large number of outstanding and successful entrepreneurs have emerged.

But these entrepreneurs are also getting older, and they are all worrying about business succession.

In 2013, Bank of China took the lead in launching the family office business. Through the "133" (a platform of Bank of China Group, three teams of banking professional team, consultant team and overseas team) service system, it provides personal financial services for ultra-high-net-worth individuals and families, corporate Financial services and value-added services, etc.

This marks the official landing of family office-type services in China through financial institutions.

In the same year, Anping Trust issued the first family trust in the Mainland - Anping Fortune Hongcheng Family Series.

Here, give an example of a century-old Chinese family.

Lee Kum Kee was established in 1888. The founder, Lee Kum Sheung, became famous in Guangdong with a bowl of oyster sauce, and gradually developed his business to Macau, Hong Kong, and Southeast Asia. His descendants of operators made Lee Kum Kee go abroad and became a part of the sauce industry. Gold lettering.

Today, Lee Kum Kee has been passed on for four generations, and the fifth generation is about to take over. This is a very representative case in the history of Chinese business.

The Lee Kum Kee family has gone through a hundred years and escaped the curse of "wealth cannot last for three generations", which can be regarded as the practice of the family office, ensuring the long-term inheritance of the family.

Let me introduce to you the family office business structure and operating rules of the Lee Kum Kee family.

The development and inheritance of Lee Kum Kee spanning more than 100 years and spanning five generations has not been smooth sailing. During this period, there have been three family changes, mostly due to the different understandings of family members on the development direction of the family business.

Therefore, Li Wenda, the head of the third generation, feels that "the business will be good when the family is harmonious." Thinking that he has four sons and one daughter, he realizes that some rules must be established within the family to ensure the healthy continuation of Lee Kum Kee and the family itself.

The first is to establish a family council as the highest organizational form of family governance.This embodies the family capital concept of the family office...

The second is to set up four institutions under the family committee, the family office, the family fund, the family training center, and the family investment company, and govern the Lee Kum Kee Group...

They also formulated a family constitution... The Lee Kum Kee family constitution has three special provisions for successors, namely the "three no principles": don't marry late, don't allow divorce, and don't have extramarital affairs.

Don’t think it’s outrageous, this is also the decisive significance of “family harmony” to the success or failure of a family after witnessing the decline of business and family decline caused by too many relatives and friends because of family discord.

The Lee Kum Kee family also attaches great importance to family education...

During the summer vacation of 2006, the family committee specially summoned these children scattered all over the world to Beijing to participate in the "Lee Kum Kee Fifth Generation Tsinghua Summer Study Class".

Mr. Li Wenda feels that through such training, the fifth generation of the family can deepen their identification with the motherland and the family..."

Ding Siyao listed the cases of the Lee Kum Kee family on stage, and Tian Desheng listened fascinatedly in the audience.

He felt that this trip was not in vain, even if he didn't know Liu Yonghao, Lei Jun and other big bosses, just listening to this class was worth it.

In the past, he often heard that overseas Chinese families passed down three generations and four generations. He felt that the foundation of the predecessors was solid enough, and the descendants received a high enough education.

Therefore, it is normal for the family business to be passed on for several generations, and it is no big deal.

Now that I think about it, the design of their internal rules is really perfect enough.

Tian Desheng felt that this model should also be used in his own family. His mistresses, mistresses, and mistresses all gave him several children.

Before, he was still struggling with who to hand over to take over.

Now he is not entangled anymore, he joins the family office, formulates the family constitution, and whoever will be the last one will be in charge of the family business.

Others are worthless, so they just receive a family trust honestly, as long as they don't starve to death.

Liu Yonghao was also absorbed in listening. He is born in the 50s and has been worrying about his daughter's succession.

He felt that he could let his daughter participate in this family office, so that after a hundred years, the family would still be able to continue to prosper according to the established operating rules.

As long as there are no major problems, it should not be a big problem to be rich for three or five generations.

Then it was Zhang Yida's turn to speak on the stage. He smiled at the big guys and said, "Then let me say a few words. I started my career in financial business, and I know very well the truth that "all eggs should not be put in one basket".

So I handed over all my holdings in Yimin Wangjin, a total of 26 billion U.S. dollars, to the Xinhuo joint family office for management.

After Ahri went public, Boss Cai handed over all his shares in Ahli, totaling billions of dollars, to the family office for management.

Pusi Capital of Mr. Tear Onion can also be regarded as the family office of Wang’s richest family.

Another example: the Dell family.

The Dell Computer Family Office started with $1998 million in 4 and now manages assets worth more than $130 billion.

Their family office has set up investment teams in five directions:
Stock investment team.

Special opportunity investment team. For example, the sovereign debt crisis in Europe in recent years is a special opportunity. This team invested in the national bonds of countries on the periphery of the euro zone.

Real estate investment team.

Private Equity Investment Team.

Cooperative investment team, this team mainly cooperates with third-party hedge funds.

The capital market operation of the Dell family office not only increases the value of the Dell family’s wealth, but also reduces the impact of Dell’s performance fluctuations on the Dell family’s wealth.

In 2002, the annual growth rate of Dell's net profit was -42.8%, and the annual growth rate of the Dell family's net wealth was 14.3%. The correlation between the two is very low, or even negatively correlated.

Why is this happening?

Because of the division of assets and diversification of investment, the wealth resistance of a family has been greatly improved.

Family wealth and family business are separate from each other.Many bigwigs whose wealth myths have been shattered in the past have not made it this far.

Operating a family office is expensive.

Current assets are less than $5 million, and operating profits cannot cover costs.

This tool is a new thing in China. My suggestion to everyone is: first jointly form an office, and after three to five years of operation, everyone has experience. If you have ideas, you can also set up a personal family office alone. "

Zhang Yida's words made all the rich people present think deeply.

Shopping malls are like battlefields, who can guarantee their longevity?

All personal wealth is entrusted to the family business, and if one trick is not careful, the whole family returns to before liberation. It has also been staged in the business world in the past few years.

After the reception, about a dozen families expressed their intention to join, and the amount was not large, so they tried the water and planned to invest [-] to [-] million U.S. dollars to experience it.

Ding Siyao was overjoyed. With Mr. Zhang's more than 20 billion US dollars, the assets under management of the Xinhuo Family Office were almost approaching 50 billion US dollars.

It cannot be compared with foreign ones, and it is not small in scale among domestic counterparts.

　Digression: Midea and Liby also have a family office.Even if the family business goes bankrupt, these people will not be too poor.

　　
　
(End of this chapter)