"Let's do this, I will hand over my Yimin Wangjin shares to your management.
Of all my assets, this is the most liquid.
Based on the current market capitalization of 5.5 billion yuan, the value is approximately US$2.6 billion.
In addition, I pledged part of the equity and obtained a loan of US$500 million.
These assets and debts are all managed by the family office of Yimin Wealth, and you can 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 offices" and "commercial multi-family offices".
A single family office means that the rich set up an independent institution, hire investment managers, and manage the family asset portfolio themselves instead of entrusting financial institutions to manage it.
It can be regarded as a private company with a special function for wealthy people.
The U.S. Securities and Exchange Commission (SEC) defines a single-family office as "a legal entity established by a wealthy family to conduct wealth management, wealth planning, and provide other services to family members."
The SEC estimates that there are 2,500 to 3,000 single-family offices active in the United States, managing approximately $1.2 trillion in assets; there are approximately 1,500 single-family offices in Europe.
Those who run single-family offices are generally the super-rich among the super-rich.
A family office is an expensive tool. To establish a "family office" whose income can cover the costs, its managed assets should not be less than US$500 million (about 3.1 billion yuan currently).
Liquid assets of this magnitude are still a high threshold for first-generation entrepreneurs with most of their assets settled in enterprises.
Even with sufficient capital, some families may still want to start small.
Regardless of the size of the assets, setting up a family office is a huge and complex project in itself, which requires a lot of time and energy from the family. Choosing to join an existing "joint family office" is often a family's attempt to "family office".
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In addition, the second major advantage of joint family offices is "economy of scale", making money as a group.
If the super rich choose to join a joint family office, they can reduce operating costs through shared service platforms, investment teams, etc.
In turn, 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 extensive experience in multiple industries and have a broader business network, joint family offices are likely to obtain more investment opportunities;
At the same time, various "internal information" and "secret information" are easier to share among different families through the joint platform.
Of course, there are advantages and disadvantages. While gaining many conveniences, choosing to join a "joint family office" also means that the family will lose some privacy and will not be able to enjoy complete customization and absolute control.
Therefore, powerful families like to establish "single family offices."
Those who are less capable, or who are not familiar with this field and want to test the waters, will basically choose a "multi-family office".
Zhang Yida will definitely not choose a multi-family office for a long time. When he thinks about it, when his career is stable and he needs to consider inheritance and preservation of value, he initiates 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 build a platform for my company, but also to test the waters for the first time in this field.
Ding Siyao was not surprised at all by Zhang Yida's words. She just mentioned casually that no matter how big-hearted the other party was, he would not invest all his assets in this family office.
After all, Mr. Zhang is still young and a member of the first generation, so he is not a particularly precise customer.
The precise customers of Yimin Wealth are those "second generation" people who want to take over the family business.
It has been nearly 40 years since the reform and opening up, and a large number of people have become rich.
Many of the founding generation are about to retire and are very worried about "succession".
The emergence of family offices is to help each other complete the inheritance of wealth and smoothly hand over the family.
"Okay! With Mr. Zhang taking the lead, I believe our multi-family office business will be much easier to develop.
In this industry, gaining customer trust is the most difficult.
At present, this trend has just become popular in China, or it has just become rich, and there is not much demand for it.
Unlike European and American countries, some families have been wealthy for hundreds of years, and their family offices have developed very maturely over several generations."
Zhang Yida was willing to hand over part of his assets for his own management, and Ding Siyao was already very satisfied.
"How do you plan to start your business in the early stage?" Zhang Yida asked again.
“Family offices are divided into streamlined, hybrid and full-service types.
A streamlined family office is mainly responsible for family accounting, taxation and administrative management.
Substantive investment and consulting functions are mainly outsourced and undertaken by external private banks, fund companies (VC/PE/hedge funds), family consulting companies, etc.
Some domestic companies have established investment development departments or strategic investment departments to make investments other than their main business, which can be regarded as the early prototype of streamlined family offices.
Hybrid family offices outsource non-strategic functions, and the outsourced functions 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.
For example, art collection and entertainment travel can be outsourced in addition to the main investment business.
The all-rounder is great, including investment, risk management, law, taxation, family governance, family education, inheritance planning, charity management, art collection, security management, entertainment and travel, global property management, butler services, etc. All services must be satisfied
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We currently cannot build a full-scale family office, we can only start with streamlined and hybrid ones.
Because we are backed by partners such as Yimin Wealth, Huayi Capital, and Ruixiang, I think we can start with a hybrid model.
Focus on financial asset investment and outsource other food, drink and entertainment.”
Zhang Yida understood that the three major types of family offices, from low to high, can be roughly regarded as:
"The confinement nanny who only helps you take care of your children";
“A nanny who not only takes care of children, but also buys and cooks food”;
"In addition to taking care of the children, she also has to cook, read stories to the children, and put them to sleep as a stay-at-home mother."
"Well, now that you have thought about it, let's start making preparations!
Family offices are not very popular in our country, but the market potential is huge.
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 wrap up some concepts and tell a story to Wall Street."
Zhang Yida knew that it would not be easy to develop this multi-family office business.
But if Ding Siyao wants to do it, let her do it.
The golden development period of this business has not yet arrived. China’s current creative generation is basically those born in the 1950s, 1960s, and 1970s.
In the next ten years, there may be a wave of market dividends.
"Then what is the name of our multi-family office?" Ding Siyao asked again.
“A family with bells and dishes, a family with poems and books, and a family with hairpins. The family fire is passed down from generation to generation and never ends.
Today's wealthy families still want to show off that they are educated and have 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 "serving every customer's children and grandchildren well, and passing on wealth from generation to generation."
For many of the founding generation, passing on wealth is more important than anything else.
You can promote more in this direction.
Family business is not the same as family wealth. Every cunning rabbit has three holes.
When the company is still developing smoothly, it is necessary to consider wealth inheritance and diversified investments, diversify investments, and resist various unpredictable risks."
Zhang Yida doesn't have to worry about these things now because he is only 20 years old. But some entrepreneurs are in their 50s and 60s and should think about future generations.
"Okay, I'll start educating customers right away."
Ding Siyao thinks what Zhang Yida said makes sense. Family offices must take "inheriting wealth and benefiting future generations" as their main selling point.
Chuangdai themselves are all leaders among people, and there is no need to teach others how to manage a company or invest and manage money.
But it is easy to build a kingdom, but it is difficult to sit on the throne. It is impossible to ensure that every second generation has outstanding abilities and can successfully take over and manage the family business well.
Compared with ordinary family trusts, family offices can undoubtedly provide more services.
…
"Mr. Tian? It's me, Ding Siyao."
"Oh, hello, Mr. Ding, 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, M2, and M3 according to the investment amount of one million yuan, ten million yuan, and 100 million yuan.
Tian Desheng is one of the few M3s in Yimin Fortune, and Ding Siyao has also dealt with him several times.
Knowing the strength of this boss, he has a net worth of over 3 billion yuan from his shareholdings in listed companies, and has also invested in many companies and properties privately.
"Mr. Tian, that's it. Didn't I mention the family office to you before?
Our Xinhuo Family Office of Yimin Wealth will officially open for business the day after tomorrow, so we would like to invite you to our opening reception."
Ding Siyao said with a smile that Tian Desheng met the admission requirements of the family office very well, and she wanted to win him over to join Xinhuo.
"Oh, that's it! But I have to go on a business trip the day after tomorrow!
I guess I won't be able to attend this cocktail party. Mr. Ding, I appreciate your kindness. I'm really sorry that I can't come."
As soon as Tian Desheng heard about Ding Siyao's family office, he showed little interest.
I am only in my forties, which is my prime year, and I have started to think about inheritance of wealth. It is too unreasonable to worry about it.
If you trick yourself into attending the cocktail party, you are probably asking yourself to invest.
I don’t want to go myself!
Since Ding Siyao was also a CEO of a large company and had invested 100 million in Yimin Wealth, he did not refuse directly and made up a reason to give both parties a step down.
"Oh, that's it! The guests attending 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 introduce you to Mr. Tian. It would be a pity if you are too busy. I can only find an opportunity next time."
Ding Siyao said with a smile on her face that this cocktail party was of high standard and there were many big-name guests. She believed that as long as they were not too busy, they would not refuse this good opportunity to build connections.
"Oh, Liu Yonghao, Lei Jun and the others are coming too! Well, let me coordinate the business trip and come and join in the fun the day after tomorrow."
Tian Desheng changed his tune without blushing or out of breath. After doing business for so many years, he had already developed good skills.
How could he be absent from such a grand event?
Although he is also a wealthy boss, he is still far behind when compared with anyone, a billionaire.
He couldn't miss the chance to meet a bigger business boss.
It would be great if we could negotiate some cooperation.