Chapter 405: First LP, Cooperation Achieved
After listening to Xie Jun's narration, Gu Junhao nodded. The financial risks are more uncontrollable than those of some other projects.
For a trust company with a background like Jiufeng Trust, it would be more appropriate to choose an investment institution that it considers more suitable to manage the assets.
At the same time, Gu Junhao was also able to confirm that the 600 million US dollars was only the other party’s first batch of funds.
If managed well, there is a possibility of further cooperation between the two parties. Beicang Urban Investment has more than just this little money.
However, Gu Junhao was somewhat surprised that the other party approached him. In his opinion, it was normal for an organization to look for cooperation.
But it was somewhat unexpected that a trust company with such a background would approach me, and this was more troublesome than dealing with private clients.
600 million US dollars is not a lot of funds. If you invest in US stocks through Junshi's proprietary trading channel, you can fully digest a few stocks and also get good returns.
However, Gu Junhao still wanted to ask, why him?
In theory, with his habitual heavy holdings, Ye Daozi and the fund manager who apparently has little investment experience can manage the assets of ordinary people.
It's really unworthy to let a company with a background like Jiufeng Trust manage the assets.
However, this is indeed an opportunity. The fact that the other party's senior vice president came to visit us in person shows that they are sincere . If this cooperation can be achieved, it will also strengthen Junshi Capital's background.
"US$600 million is not a lot, but I still want to ask Mr. Xie, why me? There are many companies with more power than Junshi Capital in Ningbo, not to mention the whole country ."
"Mr. Gu, you're joking. Who else is the most powerful fund this year besides Junshi Value Investment?" Xie Jun glanced at Gu Junhao and said.
"That was just taking advantage of the timeline and missing the stock market crash in January."
"Mr. Gu, please don't be so modest. In addition to Junshi Price Investment, Junshi No. 2 has also performed very steadily. We came here with sincerity." Xie Jun still said very politely.
However, what he was thinking about was what the leader said before he came, asking him to be as polite as possible. Judging from the performance of this young man in all aspects, he did not want to maintain too close ties with the official.
It seems to be true now. Even after spending 600 million US dollars, he is still as calm and composed as ever.
Seeing Gu Junhao still in deep thought, Xie Jun couldn't help but say, "In addition, we also understand Mr. Gu's business philosophy of using finance to feed back industry and solve employment problems. Although this amount of money is not much, it also pays attention to the future quality of life of some families in Beicang. Please don't shirk your responsibility, Mr. Gu."
Gu Junhao nodded. He was sincere enough. "In that case, I will take it. But how long do you plan to invest this money, Mr. Xie?"
"In fact, in my opinion, if Junshi Capital is looking for an investor, I hope it is a long-term and stable investor, which is more in line with the interests of both parties."
"How long is the long term, Mr. Gu?"
“Of course, the longer the timeline, the better. In my opinion, the value of time is far greater than the money itself. Through long-term cooperation, we can gain mutual trust and achieve mutual benefit.”
"I understand that Mr. Gu's holding style is mainly medium- and long-term. We are prepared for this, but all of this is naturally based on interests."
"I understand. This is just one of our ideas. If the income does not meet the requirements, I don't have the face to make such a request." Gu Junhao said with a smile.
"Mr. Gu is a wise man." At this point, Xie Jun immediately stood up and added with a smile: "Since both parties are willing to cooperate, today's intrusion ends here. Let's go back and discuss it and give Mr. Gu a reply in a week, how about that?"
Gu Junhao also stood up and nodded with a smile, saying, "Of course. Welcome Jiufeng Trust to learn more about Junshi Capital."
The two men shook hands politely. The initial intention had been discussed, which made Xie Jun quite happy.
Xie Jun had never dealt with Gu Junhao before, and since he was a relatively low-key person, the outside world didn't have much impression of him. But in Xie Jun's understanding, young people are always arrogant.
What's more, Gu Junhao is only twenty-four or twenty-five years old, but he has achieved such success, so he must have his own temper.
Unexpectedly, the meeting went unusually smoothly and the conversation lasted only half an hour.
Gu Junhao raised his own doubts, but also confidently accepted the US$600 million in funds and expressed the idea of holding it for the long term.
Although I have been paying attention to Gu Junhao for almost half a year, it is impossible to transfer 600 million US dollars directly after just one meeting. Any large amount of funds exceeding 100 million within the system requires prudent decision-making.
Otherwise, if something goes wrong, Xie Jun won't be able to take the blame.
Jiufeng Trust was attracted by Junshi Capital's stable return on investment, and Gu Junhao has been deeply rooted in Beicang, so the two parties have a natural basis for cooperation.
Jiufeng Trust is the first large institution to come directly to the door, and it has an impressive background. If the two parties can reach a cooperation, it will also be a way for Junshi Capital to make a name for itself.
With the first one, there is no need to worry about the second or third one...
After seeing off Xie Jun and the other person, Gu Junhao felt somewhat happy. With a specific investor (LP), it seemed that Junshi Capital would be able to develop a new investment business.
…
Since July 4, the trading volume of the Shanghai Composite Index has remained above 200 billion yuan, and yesterday the trading volume exceeded 280 billion yuan.
Today's trading volume remains around 280 billion yuan, and the increase has narrowed from yesterday's 1.82% to today's 0.37%.
Whether from the volume or the index point, the Shanghai Composite Index has shown a short-term top divergence trend, and the liquor sector, which has led the index upward in recent months, fell 1.66% against the market trend.
Leading liquor companies such as Maotai and Wuliangye did not perform very well today, with Maotai Liquor falling 2.32% against the market trend.
On July 14, the Shanghai Composite Index, which had shown signs of a dive at the end of yesterday's trading, opened low and fluctuated at a low level throughout the day, ending today's trading with a daily drop of 0.22%.
The adjustment came much earlier than Gu Junhao expected.
From July 14 to July 20, the Shanghai Composite Index experienced five consecutive negative daily lines. The index fell from the highest point of 3069.05 points on July 13 to 3027.90 points at the close of the 20th.
The daily line has shown a trend of five consecutive negative lines. At this time, even the slowest investors have already realized that the top and bottom of July have been formed.
The decline in the index has resulted in the Shanghai Composite Index's trading volume being less than 200 billion yuan for two consecutive trading days, and just today, Vanke A hit a low of 16.74 yuan during trading.
Since its resumption of trading, Vanke's overall decline has exceeded 40%. After seeing that Baoneng has been slow to maintain its stock price, the situation has become increasingly unfavorable for Baoneng.
However, during this period of time, some self-media outlets occasionally released some seemingly true news, and all of this made Vanke develop in a negative direction.
During this period, Baoneng did try hard, but it continued to argue with the management, and was unable to control the board of directors. Coupled with the influence of external public opinion and the decline in stock prices, Baoneng was ultimately in a very passive situation.
This also led to extreme despair among retail investors who tried to buy at the bottom after the resumption of trading. Today, when the market has been falling for five consecutive days, many investors have chosen to cut their losses for fear that Vanke will continue to fall.
In the comment section of Vanke stock, many investors posted their sell-off orders, with the largest loss reaching more than 30%, which was a heavy loss.
The deep adjustment in the 13 trading days since the resumption of trading, as well as the negative impact brought about by pen tearing from time to time, make people despair.
By this time, most of the investors who were looking to buy at the bottom have already realized that this kind of battle between the gods is not something that small retail investors like themselves can participate in.
Unfortunately, it was too late and the loss had already been done.
Although the Shanghai Composite Index experienced five consecutive declines on July 20, it was a very happy day for Junshi Capital.
Today, Junshi Capital welcomed its first LP since its establishment at nine o'clock in the morning in the conference room of Junshi Capital.
Gu Junhao and Xie Jun led the team. The lawyers of both sides exchanged documents and reviewed the relevant content. A contract of 600 million US dollars was signed at one time, which required a lot of materials.
Junshi Capital and Jiufeng Trust reached an agreement on this fund. Jiufeng Trust became the first private equity LP of Junshi Capital. The specific contents of the contract mainly include five points:
First, the closure period
The minimum closed period is one year and the maximum period is six years. From the time the agreement is signed, the principal can be redeemed once every two years. The principal redeemed each time cannot exceed one-third of the total principal, which is US$200 million.
At the same time, the entrusting party, Jiufeng Trust, can choose not to redeem the unblocked funds and continue to entrust Junshi Capital for management.
Junshi Capital also has the right to refuse to continue managing the unblocked funds. If Junshi Capital refuses, Jiufeng Trust must transfer the funds unconditionally.
Second, penalty for breach of contract
During the closed period of funds, the client shall not withdraw capital unilaterally. The client shall be fully responsible for the losses caused by unilateral withdrawal of capital and shall be required to pay liquidated damages of 5% of the withdrawal amount.
If no losses are incurred during the unilateral withdrawal of investment, the profits generated will be paid to the trustee (Junshi Capital) as liquidated damages.
Third Rights and Obligations
The entrusting party shall not interfere with the trustee's specific operation of the entrusted funds. The entrusting party has the right to know, but the trustee also has the right to refuse disclosure of information. Both parties should act on the principle of cooperation and mutual trust.
Fourth dividend distribution
The entrusted funds will be distributed as dividends to the entrusting party at 20% of the profit every year from the time they start to make a profit until the next year. The entrusting party has the right to cash out once within 12 natural months.
The dividends can be redeemed in full or in part. You can also choose to reinvest the dividends. The reinvested dividends are also subject to this agreement and are exempt from excess performance commissions.
Fifth management fee
Junshi Capital has waived the subscription fee for this subscription. If there is a new subscription in the future, a fee rate of 1% will be charged. The redemption fee will be paid at a rate of 1% of the redemption funds. At the same time, the principal must pay a management fee of 1.5% to the trustee each year.
In addition, for the excess profits (profits above 100%), the trustee will receive a 20% excess performance commission.
There are still many details in the five major clauses. The legal teams of both parties reviewed the clauses of each item one by one, which took nearly two hours.
After both parties finally confirmed that the contract was correct, Gu Junhao, on behalf of Junshi Capital, and Xie Jun, on behalf of Jiufeng Trust, formally signed the contract.
After both parties signed the contract, Xie Jun looked at Gu Junhao with a smile and said, "Boss Gu, the next thing is up to you. The funds will arrive within this week. I hope we can reap the dividends by this time next year."
The reason why Xie Jun was so happy was that in his opinion, Gu Junhao's terms were so favorable that they could be said to be helping him achieve results.
Not only are the management fees and redemption fees low, but the one-time subscription fee is also waived. Based on the US$600 million, this is US$6 million, which is quite generous.
Another point is about the commission for the excess part. Gu Junhao set this part of the commission at 100%, that is, it will be charged only after it is doubled, and it is fixed at 20%.
In Xie Jun's opinion, this is almost the same as not charging any excess share. Although he knows that Gu Junhao's operating fund is very powerful, no one is confident that he can double the 600 million US dollars by himself.
Moreover, even if it can be done, the share of the profits will be much more favorable than that of Junshi No. 2.
If the subsequent funds can be properly managed within six years, this contract alone will be enough to move me up a notch.
"Maybe it won't take six years, just one or two years, and I can make another step forward." Xie Jun looked at Gu Junhao with a smile on his face, his heart filled with joy.
This is just like the God of Wealth. Even if you really lose money, there is nothing in this contract that can blame you.
Xie Jun didn't know why Gu Junhao did this, but no matter what, when he first saw the agreement contract, he already had a strong liking for Gu Junhao in his heart.
After the contract was signed, the two parties communicated on some specific details. This time, Xie Jun was very straightforward and agreed to everything within his power.
Just like that, before they knew it, it was already past 12 o'clock and Gu Junhao invited the other team to have a quick meal.
There was no extravagance, both parties just had fast food in the office, and even no alcohol was served because they still had work to do in the afternoon.
Of course, Gu Junhao would not be so ignorant. Although it was fast food and not extravagant, it was completely different from what he usually ate.
Xie Jun and others were naturally well aware of this, and couldn't help but praise Gu Junhao in their hearts.
You know what, this guy is right at first sight, and everything he does is right. This is roughly Xie Jun’s impression of Gu Junhao at this moment.
