Winning the new financial era

Chapter 360 The Dividend Conference
After the reception ended, Chen Wei found Lei Dongming who was about to leave, and said, "Mr. Lei, are you free? I want to talk to you!"

Lei Dongming looked at the smiling Chen Wei, and couldn't figure out what his intentions were. Could it be that he wanted to learn from Toutiao and clear out Huayi Capital's shares?
Ever since Huimin Chuxing started to launch services such as aggregate taxi-hailing and ride-hailing, the relationship between Chen Wei and Zhang Yida has been deteriorating.

Even Huayi Capital was targeted, and many shareholders of Didi Travel clamored to let Huayi Capital out.

Although Lei Dongming felt that Didi still had value-added potential, if the other party wanted to let Huayi Capital out, he could only accept this fact.

No way, from the very beginning of its establishment, Huayi Capital has been deeply imprinted with Zhang Yida's personal brand.

Without Zhang Yida, Huayi Capital would not be where it is today.

Several successful investment projects in the early stage of fund operation, including Didi and Toutiao, were also found and approved by Zhang Yida.

Now it's okay to be out because of Zhang Yida, it's almost enough money.

It's just that Chen Wei didn't take any action, and Lei Dongming almost forgot about it.

"Okay," Lei Dongming looked calm, and looked around for a few times, "Are we talking here?"

"It's too noisy, find a quiet place!"

Chen Wei found a quiet room in the hotel, thought about his language, and said, "Didi has always had the ambition to enter the international market, but to develop in other people's territory, we must find two allies!

You also know that my shareholding in Didi is only a few percent. If it is further diluted, it will probably become a decimal point. "

Lei Dongming smiled and said nothing, took a sip of coffee by himself, and thought: Can you hurry up?Pull this and that.

Seeing that Lei Dongming was so calm, Chen Wei felt a little angry.

I'm forcing you to get out of the car, don't you feel anxious at all?
Without Didi’s shares, not only will you not be able to share Didi’s future growth dividends, but you will also lose a successful investment case worth hundreds of billions of dollars.

Not lost?Not desperate?No regrets?
"So we hope to sell some old shares, so that early shareholders can withdraw and get satisfactory returns, while maintaining the proportion of management's shareholding."

"Okay, no problem," Lei Dongming nodded, "Let's go with the valuation of 350 billion U.S. dollars. Huayi Capital can sell all of its 1.49% shares."

华屹资本是在2014年3月份的时候投资了嘀嘀9750万美元，获取了后者7.5%的股份，当时嘀嘀投后估值将近13亿美元。

After that, Didi experienced 9 rounds of financing and two rounds of mergers, and the shares of Huayi Capital were diluted by more than 80%, from 7.5% to 1.49%.

Of course, this is the result of Huayi Capital not making a follow-up investment and making additional investment.

It’s not that Huayi Capital doesn’t want to follow suit, it’s just that the Didi project is so hot that it can’t get in at all, and some top capitals are vying for it.

For example: Penguin, Ali, CICC, CITIC, CIC, Anping, Temasek, China Life, Apple, China Post, China Merchants, etc.

Compared with these top capitals, Huayi Capital is not qualified at all. It was lucky to get some shares in the early stage.

Later, people will continue to expand financing, and it would be great if you can share in the pie. If you want to eat meat, dream about it.

In addition, when Didi merged with Kuaidi, the equity transaction consideration was 52:48; when Uber China was merged, the equity transaction consideration was 80:20.

With these two mergers and acquisitions alone, the equity of Huayi Capital has been diluted by nearly 60%. It is not surprising that with the 9 rounds of financing, the remaining equity is only nearly 1.5%.

The worst thing is Chen Wei. In his previous life, Didi’s 18 rounds of financing, plus two rounds of mergers and acquisitions, Chen Wei’s shareholding is only 2.9%. Including other management’s shares, the entire Didi management’s shareholding is only 5.88%. .

"$350 billion multiplied by 1.49% is $5 million, which we can accept."

Chen Wei looked at Lei Dongming, "But we also have a condition, that is, we hope that Didi's shareholding in Huimin Travel will be counted as part of the transaction consideration."

"Maybe it's not enough?" Lei Dongming said lightly.

"It's not enough. Didi holds 1.82% of Huimin Travel's equity. Based on a valuation of US$80 billion, the value is US$1.456 million."

Chen Wei added: "We hope to transfer this 1.82% stake to Huayi Capital, and use more than 3 million US dollars in cash to make up the difference."

Lei Dongming shook his head and laughed, "Didi and Huimin's trip needs to be negotiated by you."

Turning to look at Chen Wei again, "Huayi Capital can withdraw from Didi, but we only need cash."

"Mr. Lei, do you have no confidence in Huimin's travel? Or do you think the valuation is too high?"

Lei Dongming shook his head, "Huayi Capital is a VC that focuses on early-stage investment, we still hold 1.76% of the equity of Huimin Travel, and have not made any follow-up investment in the middle.

Small-amount dispersion is the operating logic of our fund, including investments in Toutiao, Didi, and Meituan are implemented according to this rule. "

"Okay, an all-cash transaction is also acceptable. Mr. Lei will come over to sign the contract tomorrow! Okay, that's it!"

Chen Wei got up and wanted to leave, but before he left, he turned his head and looked at Lei Dongming again, and left a sentence like this:

"Please tell Mr. Zhang that Didi wants to sell the shares of Huimin Travel."

……

Huayi Capital Corporation.

"Old Lei, yes! Two investments, 15.2 million U.S. dollars, in two and a half years, exchanged for [-] billion U.S. dollars!" Zhang Yida joked with a smile.

With such a big move by Huayi Capital, more than one billion U.S. dollars in cash was recovered in a short period of time.So he also came to the meeting today, and was going to discuss the matter of money distribution with Lei Dongming.

"President Zhang is a good leader, and I will follow suit." Lei Dongming smiled modestly.

This is really not self-effacement. Huayi Capital raised 2.5 million US dollars in the first phase, and invested in a total of 4 companies, TMD and Huimin Travel, each of which is well-known in the industry.

The investments in these four companies were all completed under the leadership of Zhang Yida, and he, Lei Dongming, also helped.

Although unicorns have also emerged in the companies invested by Huayi Capital in the second and third phases, they are far inferior to these four companies in terms of valuation and industry influence.

"You are self-effacing, if you didn't help Huayi Capital attract one-third of the investment funds in the early stage of entrepreneurship.

Even if there is a good project, we can only stare from the sidelines! "

Zhang Yida didn't feel that Lei Dongming was "making money" at all, although he contributed the most to finding projects, and also brought in two-thirds of the investment funds.

However, Lei Dongming also contributed a lot to Huayi Capital, regardless of the contribution of fundraising.

Equity investment funds include four links of "raising, investment, management and exit", and the management and exit are also followed up by the other party.

In addition, Huayi Capital is also well-managed by the other party.

Although there are no more amazing projects, its development can be regarded as stable and fast.

Because all the big fish in China's Internet have been caught by Zhang Yida, even if Huayi Capital wants to make good results, it is estimated that there will be no particularly good projects in a few years.

In addition, the fourth phase of fundraising of Huayi Capital has also been completed.Under his management, he manages four US dollar funds and three RMB funds, and the total fund management scale has exceeded US$30 billion.

This management scale is already very close to some established top equity investment funds.

Of course, it is still far from the ranks of Gaoling Capital and Heishan Capital, which are tens of billions of dollars in scale.

Insufficient compared with the top, more than the bottom, in terms of fund management scale, it has basically crushed 98% of the peers.

According to statistics, excluding private securities investment funds, there are about 1.2 domestic private equity investment funds and venture capital fund managers, almost 2.7 funds under management, and an asset management scale of more than 6 trillion yuan.

In other words, the average size of a fund is less than 3 million yuan, and the asset management scale of a venture capital institution is about 5 million yuan.

Of course, this thing, like the average salary, sometimes feels outrageously off.

Because more than 87% of investment institutions have assets under management of less than 5 million yuan.The average data is raised by giants like Heishan and Gaoling.

In the same way, many people in China have a monthly salary of only two to three thousand yuan, and the average monthly salary is directly pulled to six or seven thousand by the rich.

"Except for the four projects invested in the first phase, except Meituan and Huimin Travel, the other two major projects have successfully exited."

With a smile on his face, Lei Dongming concluded: "We still have a 0.58% stake in Meituan, worth more than US$1.2 million; Huimin Travel also holds a 1.76% stake, worth more than US$1.4 million.

Taken together, the US$2.5 million invested in the first phase of the fund has now returned a total of US$17.8 billion.

In two and a half years, the return has exceeded 7 times! "

"It's only 7 times! It's not much!"

Zhang Yida originally thought that he would earn at least [-] to [-] times the return, which was only a single-digit return multiple, which somewhat disappointed him.

"Mr. Zhang, 7 times is not a lot!"

Lei Dongming smiled wryly, this master really doesn't hurt his back when he is standing up and talking, really think that everyone can make money in equity investment?And also make money several times several times.

"It's okay," Zhang Yida said with a smile. "Except for Huimin Travel, we participated in the other three projects relatively late, either in the C round or the D round."

"That's right! Of the four projects, the one with the highest return is Huimin Travel. The original investment of 250 million U.S. dollars has become 1.4 million U.S. dollars, a 56-fold increase!"

Lei Dongming added, "It's better to make money by investing in the early stage!"

"Wrong, the multiple looks high, but in fact, it has earned more than 1 million U.S. dollars."

Zhang Yida chuckled twice, "Look at the other three projects. Toutiao made 9 million dollars, Didi made more than 4 million dollars, Meituan..."

It was only then that Zhang Yida remembered that Meituan didn’t seem to be making much money from Huimin’s travel, and asked, “What happened to Meituan? At that time, the investment was 5000 million U.S. dollars. After more than two years, it turned into 1.2 million U.S. dollars?”

"Um, Mr. Zhang, did you forget? Meituan was valued at US$30 billion when we invested."

Lei Dongming sighed, "Then Meituan and Dianping merged in a 5:5 stock swap, and our equity was diluted by half again.

In fact, Meituan is now valued at 200 billion US dollars, a large part of which is brought by Dianping, and its own growth is not much.

This is also a bad habit!Merging at every turn, this is the case with Meituan, and so are Didi and 58. "

"Haha, if I can't beat you, I'll marry you!"

Lei Dongming gave a thumbs up, "The summary is in place! That's it, we are all a family, and everyone should stop fighting and burning money. Investors are very distressed!"

"Then should we give investors early dividends and exit?" Lei Dongming asked.

"Divide it! The equity has been sold, and there is no reason to withhold the investor's money."

Zhang Yida reminded again: "Calculate the annual compound rate of return of our fund and see which one is it?"

"The annual compound rate of return exceeds 240%, which belongs to the highest level."

Zhang Yida was overjoyed, "Isn't it necessary to charge 50% of the investment income as a service fee?"

"Yes," Lei Dongming said again, "50% is a bit high! The industry practice is 2% management fee + 20% revenue share.

In order to raise funds, some institutions with poor performance also waive management fees, and only charge 10%-15% for profit sharing.

Our 50% is the highest in the industry! "

"Competent organizations are naturally qualified to charge more money." Zhang Yida knew what Lei Dongming was worried about. He was afraid of scaring away customers!

However, the LP of the first phase of the fund was willing to sign this agreement, because they felt that Huayi Capital could not achieve this compound rate of return.

Now that's done, let's see what they have to say.

"I'm not afraid of anything, but I'm afraid that others will scold us as a black shop!"

Zhang Yida waved his hand, "Don't worry about black shops or not, let's call the first LP meeting together! This is the first dividend distribution of our Huayi Capital, so make it more grand."

"Okay, I'll arrange it now!"

(End of this chapter)