Rebirth of the investment era

Then, the next day, the Fund Market Business Department of Yuhang Investment Company, following Su Yu’s instructions, released the news that the second fund would be launched before the National Day...

Zhezhou, Shenzhen, Shanghai, Yanjing... Countless large investors from all over the country who paid attention to the 'Fortune Road' and the 'Yuhang No. 1' fund products began to raise funds frantically, and booked tickets overnight to rush to Yuhang. They gathered near Yuhang Investment Company, waiting for the day when the fund would go on sale.

And there are many big group bosses from the local area and even surrounding provinces who have status and status.

As well as people from various industries with strong assets and wide connections.

They also began to contact Su Yu and other core figures within 'Yuhang Investment' through the investor groups who had previously invested in the 'Yuhang No. 1' fund, as introduced by friends, and wanted to be the first to contact Su Yu on the day when the new fund was launched. , get more fund investment shares.

And this time...

After Su Yu released the news, he was intensively discussing with the managers of the company's fund business department the establishment of a new fund, the 'Yuhang No. 2' fund.

For example, the approximate amount of funds to be raised; the maximum number of shares an investor can subscribe for; how to calculate fund management fees and profit sharing, and a series of other issues.

"I think……"

Li Meng thought for a while during the internal meeting and said: "The overall fundraising scale of the 'Yuhang No. 2' fund should not be too large. A quota of 3 billion to 5 billion is appropriate, because the current market liquidity is limited after all. , the size is too large, it is difficult to grow the net worth, and our entry and exit under the current liquidity is also a problem.”

“This quota of 3 billion to 5 billion can cover many investor groups.”

"At the same time, the entry and exit of this amount of funds can generally be completed quickly under the current market liquidity."

"The size is too small and the investor groups covered are limited. Even if we can achieve high performance, the expansion effect of its interest groups will not be great. It will not have much impact on our company's accumulation of contacts and the construction of a common interest network. The effect is so...it would be better not to open a new fund.”

“The scale is too large, and although it covers a wider investor group, it will be more difficult for us to operate it.”

"The key is that it is not easy to increase net worth, and market liquidity is not sufficient."

"If the net value performance of our second fund becomes mediocre, it will be a huge blow to the subsequent development of our fund, and we will also lose the trust of investors."

"So I think……"

"Compared with the current market liquidity of 100 billion, a fundraising amount of 3 billion to 5 billion is the most appropriate."

When Su Yu heard Li Meng's opinion, he nodded slightly, then turned to Yu Xiaobing from the Fund Market Business Department and asked, "Manager Yu, what do you think?"

Yu Xiaobing coughed slightly and said: "If I follow the philosophy of the company I worked for before and the vast majority of private equity institutions when opening funds, then the more funds raised, the better. After all, the net worth is uncertain. matter, but the basic management fee is certain.”

“The more funds you raise, the more basic management fees you will receive.”

"The higher the basic management fee, the more it can dilute the company's operating costs and increase the company's actual profit."

"But this is for ordinary private equity institutions..."

"Mr. Su's investment ability is the best I have ever seen in my life. If our company can maintain relatively good net worth growth, then the basic management fee is not particularly important to us. In this way... there is no need to focus on pursuing scale. growth, appropriately reduce the scale, and maintain strong expectations among investors."

"This is more conducive to the future development of our company and more conducive to our establishment of a network of interests."

"So, you agree with Manager Li's opinion, right?" Su Yu asked.

"Yes!" Yu Xiaobing nodded, "I always believe that public funds only pursue economies of scale, while private funds must always take performance as the criterion in order to go further."

"Okay!" Su Yu said, "Since the opinions are unanimous, the fundraising scale should be determined at 5 billion!"

"Next..."

Su Yu paused and then said: "Let's talk about the profit sharing standards, fund management fees and investor subscription limit standards, as well as the lock-in period and so on!"

"Profit sharing standards, fund management fees, etc., should be implemented according to the standards of the previous fund!" Li Meng said, "As for the restrictions on investor subscription shares, except for the minimum subscription standard of 1 million, the upper limit is defined The maximum number of subscriptions is 10 million shares, which I think is more reasonable."

"Calculated based on the fundraising amount of 5 billion..."

“Even if every investor subscribes at the highest level, 500 investors can be covered, which is quite a lot.”

"If calculated based on the minimum subscription amount, it is enough to cover 5,000 investors. This benefit network... is quite broad."

"As for the lock-in period and so on..."

"I think one year is the most appropriate. At other times, unless the net value of the fund drops to the point of being forced to liquidate, or we take the initiative to conduct net settlement and liquidation, it cannot be redeemed."

Su Yu thought for a moment, said nothing, and asked Yu Xiaobing again: "Manager Yu, what do you think?"

Yu Xiaobing glanced at Li Meng, thought for a while, and said bluntly: "Mr. Su, when our company was established, the first fund we established had an initial amount of only 400 million. In that case, the profit sharing would be, It is appropriate to set it after the net value is greater than 1.5."

"but now……"

"If the fundraising amount of our second fund is 5 billion, the profit share will still be set after the net value is greater than 1.5, which is not cost-effective for the actual interests of our company."

"After all, our company's reputation has already been established."

"Our relationship with investors is that we are in a proactive position, so... there is no need to continue to give away profits."

"And in the current market, other private equity institutions generally start to implement profit sharing after the annual net worth exceeds 1.2, or exceeds 1.3."

“I think we can follow the general rules of the industry for our second fund.”

"That is, after the annual net worth exceeds 1.3, that is, the annual profit exceeds 30%, you will participate in subsequent profit sharing."

"Of course, we can also set up ladders in terms of specific profit sharing."

"For example, if the annual profit exceeds 30% but is less than 50%, the company will take 30% of the profit exceeding 30%; when the fund's annual profit exceeds 50%, the company will take 50% of the profit exceeding 50%."

"As for the basic management fee..."

"The setting of the first fund was very good. Taking care of investors in this way is also beneficial to us."

"As for the limit on investors' subscription shares, I think the upper limit of 10 million is still too much. The upper limit of 5 million is enough. After all, our goal is to cover more investment groups, so Only then can the chain of benefits spread further.”

"As for the lock-in period..."

"Manager Li and I have the same idea. A one-year lock-in period is the general rule."

"Well, I thought about it carefully and agreed with Manager Yu's suggestion on profit sharing." Li Meng continued without waiting for Su Yu to speak, "But I still think the subscription limit of 5 million is inappropriate."

"Why is it inappropriate?" Su Yu asked.

Li Meng pondered for a moment and replied: "Five million in cash investment is indeed not a small amount of money for ordinary people, and even for many large households, but our target is not only these large households, but also those enterprises Bosses, group bosses!"

"The resources and connections they have at their disposal are crucial to the development of our company."

"Only by tying them to our interest chain will our company's future development get more help, and someone will naturally solve a lot of troubles for us."

"However, if the investment amount is limited to 5 million..."

"These characters, faced with such a small amount of money, probably won't care much about it, and it will be difficult for them to form a close relationship of interest with us."

"After all, a small amount of capital investment, even if it is multiplied several times, will not have a great impact on them."

"But tens of millions of dollars can almost enter the threshold of interests they care about, and it can basically tie them to our boat."

"Yeah!" Su Yu smiled, "That makes sense."

Yu Xiaobing thought for a while and felt that if he wanted to tie up these people worth hundreds of millions, the investment limit of 5 million was indeed not enough, so he did not refute it.

Su Yu saw that the two of them basically had no different opinions.

So he smiled, made the final decision, and said, "Since everyone has no different opinions, let's make an agreement based on the final result of the comprehensive discussion!"

"The amount of funds raised by the fund is limited to 5 billion."

"The investor's subscription quota range is limited to between 1 million and 10 million."

"The fund's basic management fee and profit sharing are set at..."

“The annual fund net value is less than 1, that is, the fund suffers a loss, and the management fee is waived; the annual fund net value is greater than 1 and less than 1.2, that is, the annual profit is less than 20% and there is no loss, then a 2% management fee is charged; If the fund's net value is greater than or equal to 1.2 and less than 1.5, a 3% management fee will be charged; if the annual fund net value is greater than or equal to 1.5, a 4% management fee will be charged."

"And when the annual net value of the fund is greater than 1.3."

"In addition to a 4% fund management fee, a 30% profit share will also be charged after the fund's annual net value is greater than 1.3."

"And when the annual net value of the fund is greater than 1.5."

"If the fund's excess profits exceed 50% of profits, the company will charge 50% of the profits."

"The fund lock-up period is one year. After one year of subscription, you can freely redeem it within the open redemption period. At the same time, the fund liquidation line is set at 80%. When the overall net value of the fund loses 20%, that is Unconditional liquidation and stop loss, and the company enjoys all rights to free settlement and information disclosure.”

"Agree!" Li Meng nodded after Su Yu finished speaking.

"Agree!" Yu Xiaobing nodded in agreement.

Later, after the meeting ended, Su Yu handed the meeting minutes to the company's legal lawyer, Lawyer Shao, in accordance with the rules agreed upon by everyone, and then asked him to work out the relevant subscription contract.

Immediately afterwards, the new fund was filed with the Management Office of the Fund Industry Association.

And after everything is done...

On Thursday, September 27, when the index achieved eight consecutive positives, the voice of ‘bull market’ began to spread through the entire domestic investment market.

Yuhang Investment Company officially welcomes the day for the official subscription of its second fund, the ‘Yuhang No. 2’ fund.