"Today is the day when the Xinhuo Family Office was established. Thank you very much for your presence..."
In a private club outdoors in Beijing, dozens of super-rich people and elites from various industries were sitting in the audience, watching Ding Siyao, dressed as a professional female elite, delivering a speech on the stage.
Ding Siyao was wearing an off-white haute couture suit, with her long black hair pulled into a bun. She looked at a group of big bosses with a combined net worth of over one trillion yuan staring at her. She was a little nervous as she took the stage to give speeches every now and then.
“The earliest family office in modern times appeared in the Rockefeller family in the late 19th century.
Today, family offices have become a standard feature for wealthy families in Europe and the United States.
But in China, this has always been a secretive and niche field.
But the family office is far less mysterious than imagined. In summary, the main function is to govern and manage the four major capitals - financial capital, family capital, human capital and social capital.
Financial capital carries out centralized management of family wealth as a whole, bringing together family financial assets distributed in multiple banks, securities companies, insurance companies, and trust companies into one family financial statement, and selecting and supervising investment managers to implement
Effective investment performance assessment to achieve optimal allocation of family assets..."
Shen Beipeng glanced at Ding Siyao who was speaking on the stage, and said softly to Zhang Yida: "Okay! This little girl is growing up very fast! Did you come up with this family office idea or did she come up with it?"
Zhang Yida glanced at Shen Beipeng and said, "What's wrong? She brought it up. You are worth so much, so you might as well consider investing a little in the fire."
Shen Beipeng smiled and said: "There are rumors outside that I am worth tens of billions. You don't think the same as them, do you?"
Zhang Yida knows this story. Blackshirt Capital’s investment has been so successful that it claims to have bought half of China’s Internet.
The total market value of the domestic companies he holds shares in 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, he quit Ctrip and entered the venture capital circle. These shares were also cashed out and were almost diluted.
Now the majority of his assets still come from fund dividends from Blackshirt Capital.
Zhang Yida can't guess exactly how much Shen Beipeng is worth, but it's at least US$1 to 2 billion.
"It's not easy for us to do a small business! After all, Blackshirt Capital is also a shareholder. You can invest one to two hundred million US dollars in assets to support it.
I plan to send Yimin Wealth to go public next year, and pack more concepts into it before going public.
Don’t you have to consider wealth inheritance in the future? Traditional industry bosses don’t understand family offices. How can you, the most prestigious venture capitalist, understand it?
You first come to Xinhuo's multi-family office to transition for a few years. In the future, if you want to set up a personal family office, you also have experience, don't you?"
Zhang Yida started to pull Shen Beipeng into the car, explaining one theory after another. Shen Beipeng was speechless. He said: "Okay! Invest 100 million US dollars in assets, but you have to check it carefully. This is all for my pension."
money."
"Don't worry, I have put 2.6 billion US dollars in assets into it just to try out the family office operating model."
Zhang Yida is relatively reassured. Yimin Wealth has been operating for two years, so there is no doubt about its professionalism.
If he loses money, he will admit it. How can investment be without risks?
“In the past 40 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 getting older and are worried about business succession.
In 2013, Bank of China took the lead in launching family office business, providing personal financial services to ultra-high net worth individuals and families through the "133" (one platform of Bank of China Group, three teams of banking professional team, advisory team and overseas team) service system, and corporate
Financial services and value-added services, etc.
This marks the official launch of family office-type services in China through financial institutions.
In the same year, Anping Trust issued the first family trust in mainland China - Anping Wealth? Hongcheng Family Series.
Here, let’s take an example from a century-old Chinese family.
Lee Kum Kee was founded in 1888. The founder, Lee Kam Sang, became famous in Guangdong with a bowl of oyster sauce, and gradually expanded his business to Macau, Hong Kong, and Southeast Asia. His descendants of operators allowed Lee Kum Kee to go abroad and become a player in the sauce industry.
Golden signboard.
Today, Lee Kum Kee has been passed down to 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 has escaped the curse of "no wealth can last more than three generations". This can be regarded as the practice of the family office, ensuring the long-term inheritance of the family.
Let me introduce to you the business structure and operating rules of the family office of the Lee Kum Kee family.
Lee Kum Kee's development and inheritance spanning more than 100 years and spanning five generations has not been smooth sailing. During this period, the family has experienced three changes, mostly due to family members' different understandings of the development direction of the family business.
Therefore, Lee Man Tat, the third-generation head of the family, believes that "business will only be successful if 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 that Lee Kum Kee and the family itself can continue healthily.
The first is to establish a family committee as the highest organizational form of family governance. This reflects the family capital concept of the family office...
Secondly, four institutions including family offices, family funds, family training centers, and family investment companies are established under the family committee 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's principles": do not marry late, do not allow divorce, and do not allow extramarital affairs.
Don’t think this is outrageous. This is why Mr. Li Wenda has witnessed the decline of business due to family discord among too many relatives and friends around him. After the decline of the family, he has learned that “family harmony” is of decisive significance to the success or failure of a family.
The Lee Kum Kee family also attaches great importance to family education...
In the summer vacation of 2006, the family committee specially summoned these children scattered around the world to Beijing to participate in the "Lee Kum Kee Fifth Generation Tsinghua Summer School".
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 case of the Lee Kum Kee family on the stage, and Tian Desheng listened in rapt attention in the audience.
He felt that this trip was not in vain. Even if he did not meet Liu Yonghao, Lei Jun and other big guys, just listening to this class was worth it.
In the past, he often heard that overseas Chinese families were passed down for three or four generations. He felt that the foundation of the family was laid firmly enough by the predecessors and the descendants received a high enough education.
Therefore, it is normal for a family business to be passed down for several generations, and it is not a big deal.
Now that I think about it, this internal rule design is really quite complete.
Tian Desheng felt that this model should be adopted in his own family. His mistress, mistress, and mistress all gave birth to several children for him.
In the past, he was still struggling with who should be handed over to take over.
Now he no longer has to worry about joining this family office and formulating a family constitution. Whoever comes out last will be in charge of the family business.
If the others have no future, they can just accept a share of the family trust, as long as they don't starve to death.
Liu Yonghao also listened with great concentration. He was born in the 1950s and has been worried about his daughter's succession.
He felt that he could let his daughter participate in this family office. A hundred years later, the family would still be able to continue to be wealthy according to this planned operating rule.
As long as nothing goes too wrong, it shouldn't be a big problem if someone gets richer for three or five generations.
Then it was Zhang Yida's turn to take the stage to speak. He smiled at the big guys and said, "Then let me just say a few words. I started out in the financial business and I know very well the principle that "eggs cannot be put in one basket."
So I handed over all my holdings in Yimin Net Financial, totaling US$2.6 billion, to the Xinhuo United Family Office for management.
After Ali was listed, Boss Cai handed over all his shares in Ali, totaling several billion dollars, to the family office for management.
Pus Capital of Mr. Tear Onion can also be regarded as the family office of the richest Wang family.
Another example: the Dell family.
The Dell Computer Family Office started with $400 million in 1998 and now manages more than $13 billion in total assets.
Their family office has established investment teams in 5 directions:
Stock investment team.
Special opportunity investment team. For example, Europe's sovereign debt crisis in recent years is a special opportunity. This team has invested in the national debt of peripheral countries in the Eurozone.
Real estate investment team.
Private equity investment team.
Cooperative investment team, this team mainly cooperates with third-party hedge funds.
The capital market operations of the Dell Family Office not only increase the value of the Dell family's wealth, but also reduce the impact of fluctuations in Dell's performance 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 was very low, or even negative.
Why is this happening?
Because of the division of assets and diversified investments, a family's wealth resistance to risks has been greatly improved.
Family wealth and family business are independent of each other. Many big figures who shattered the myth of wealth in the past did not achieve this step.
Running a family office is expensive.
Current assets are less than US$500 million, and operating profits cannot cover costs.
This tool is a new thing in China, and my suggestion to everyone is: first jointly set up an office, and after operating it for three to five years, after everyone has experienced it, those who have ideas can also set up individual family offices alone."
Zhang Yida's words made all the wealthy people present think deeply.
Shopping malls are like battlefields. Who can guarantee their long-term prosperity?
All personal fortunes were placed on the family business. One wrong move and the whole family returned to before liberation. This has also happened in the business world in the past few years.
After the cocktail party, about a dozen families expressed their intention to join. The amount was not large, so they just wanted to test the waters and planned to invest 100 to 200 million US dollars to experience it.
Ding Siyao was extremely happy. Adding in Mr. Zhang's more than two billion US dollars, the Xinhuo Family Office's assets under management were approaching US$5 billion.
It can't be compared with foreign ones, but it is quite large among its domestic counterparts.