Chapter 1236 Don't let him learn badly

The private equity that cooperates with local tyrants is called Neptune Capital. The rules are similar to Pluto Capital, and there are also "three red lines", but there are slight differences in details.

The Abu Dhabi consortium has too much money to spend, and there is no shortage of living money in their hands, which means that they accept longer-term and more stable investment returns.

There is room for manipulation.

The closure period is 10 years.

For common private equity, the closing period is about 3-5 years. There are relatively few funds with a 10-year closing period, and they are generally entrepreneurial funds, such as Softbank.

For local tyrants, this is not a problem at all.

As long as the return on investment is high, as long as there is money to be made, anything can be promised.

In addition, the biggest difference is the settlement cycle of the "three red lines".

In general private equity, the settlement cycle of management fees and custody fees is settled every day, and profit dividends are settled every year. For example, for Pluto Capital, the annual management fee is 2%, which means that 0.0055% of the assets will be deducted from the investor's account every day as a management fee and handed over to the fund manager. The fund manager's dividend is 30%, that is, the income for one year is settled at the end of the year, and the profit dividend can be obtained after reaching the standard.

However, the biggest feature of private equity is "private", which can be personalized with many different product designs. Public offerings are similar all over the world, but private offerings have many tricks. As long as investors agree, they can design them however they want. (domestic control is strict, and there are few tricks)

Pluto Capital’s guaranteed minimum annualized return is 20%, the promised return of management fees is 10%, and the promised loss compensation annualized return is less than 0%.

A key point here is the billing cycle.

Ups and downs are normal in the stock market.

Even Apple's stock, will often fall sharply, and then continue to grow. Once there is a long-term negative decline in a certain year, the annualized commitment to Pluto Capital will be very risky.

Therefore, Pluto Capital has an additional condition, that is, unified settlement for the first 3 years.

That is to say, the statistics of the previous three years will be the average value, and the average annualized rate of return in the past three years will be calculated whether it is 0%, 10% or more than 20%. In this way, the risk of Pluto Capital will be greatly reduced. .

Even if Apple may encounter some special events, the stock will fall for a long time, but it is impossible to fall for 3 consecutive years, right? There may be a big rise in some years, and a relatively slow rise in some years. On average, this greatly reduces the risk that Zhou Buqi has to bear, and the "three red lines" rule can be easily bypassed.

However, there is still a slight risk.

What will happen after 3 years?

At that time, if you want to maintain an annualized income of more than 20% every year, once you encounter a special year, you may have to do accounting, transfer past or future income to years with insufficient income, and then you will meet the standard.

You don't even need to make accounts, you can give investors a profit, and you can also have a relationship. As long as you keep a bottom line, you can earn less and not lose money.

It is not so complicated on the side of local tyrants in the Middle East.

No matter what plans the Fed, Goldman Sachs or others have and the layout of the financial market, no matter how the United States and Europe are trying to win over local tyrants in the Middle East... These have nothing to do with Zhou Buqi. For the local tyrants in the Middle East, his only purpose is to make money! And it is to make a lot of money safely and steadily!

The basic terms of Neptune Capital are similar to those of Pluto, and there are also very attractive "three red lines" terms. For terms with relatively large differences, the closed period of Neptune Capital is 10 years, and the dividends and profits are uniformly settled for 10 years. In other words, within the 10 years of the closed period, the average annualized income should be calculated.

As long as the average value is calculated, all risks are gone, and there is no need for accounting. Buy stocks, and then do nothing, regularly send a gratifying growth report to the rich in the Middle East, and then wait for 10 years to expire.

The disadvantage is that it is a bit troublesome.

No settlement means no profit dividends.

For example, if you make a net profit of 100 yuan in one year, and the settlement cycle is 1 year, you can get a profit dividend of 30 yuan at the end of the year. If the settlement cycle is 10 years, you will not get the profit dividend at the end of the year, and you will have to wait 10 years to get it. I have earned a total of 1,000 yuan in 10 years, and I can get 300 yuan at one time after settlement.

For Wall Street, this is not a problem at all, and you can play the routine of interest-free or ultra-low interest rate loans.

Because there is no settlement at the end of the year, the fund manager cannot get profit dividends at the end of the year, what should I do? You can borrow money! The fund manager lends 30 yuan from the private equity fund.

I lend 30 yuan every year, and after ten years, the settlement will be settled, and a one-time repayment will do.

Rules are dead.

No matter how good the rules are, once the behavior of being both a referee and an athlete occurs, the rules can be easily circumvented. Neptune Capital's referees are weekly, and athletes are also weekly. He can issue interest-free loans to himself.

On the financial statement, it shows that 90 yuan is invested in stocks, and 10 yuan is invested in financial derivative services... As for what stocks to buy and what financial derivative services have been done, I'm sorry, outsiders are not qualified to know.

The investment strategy of private equity is to be highly confidential and operate in the dark. As long as there is a censorship mechanism, people like Madoff and Low Tezuo will not be discovered for so many years.

This is also a paradox between regulation and innovation. Wall Street has loose regulation, a lot of financial innovations, which is dazzling, and there are many big scammers; domestic regulation is strict, and financial innovation is scarce, and the victory lies in stability. The domestic mechanism is that stability is the most important thing, and the ability to innovate must be sacrificed.

Anyway...

After some communication, the local tyrant in the Middle East is very satisfied!

There are hundreds of terms in this fund, many of which are conventional and many of which are innovative. For them, the most attractive thing is the third of the "three red lines" - the loss compensation mechanism.

Once the fund loses money, the fund manager must compensate the investor for the loss!

In other words, if you invest your money in Neptune Capital for 10 years, at worst, you will break even at worst, which is great!

When the negotiation was taking a break, Sun Guanran still didn't quite understand it, and asked strangely: "It's so strange, why do they keep staring at the terms of loss compensation? Isn't the 20% annualized return guarantee more attractive?"

Zhou Buqi laughed and said, "Because he is a local tyrant passed down from generation to generation, while you are an ordinary person."

Sun Guanran gave him a white look, and said sourly: "I followed you, am I also an ordinary person?"

"I mean...well, you know the saying that the rich can't pass three generations?"

"Um."

"why?"

"A prodigal son." Sun Wanran curled his lips, and then covered his mouth with a smile, "By the way, you are still the second generation rich. I remember that when we were in school, we all discussed you in private, asking what kind of clothes you were wearing today. Famous brands, so rich.”

Zhou Buqi snorted, "How much does it cost to buy famous brands?"

"It's also a luxury for us ordinary people."

"That's the difference."

"how?"

"For the rich, how much does it cost to buy famous brands, luxury cars, even luxury houses, yachts, and private jets? Forbes estimates that my net worth is 12 billion US dollars, even if this is accurate. 12 billion US dollars are deposited in the bank every year, and you can get 600 million US dollars in interest. With this 600 million US dollars, what kind of luxury houses, planes, and yachts can’t be bought?”

Sun Guanran's beautiful eyes widened, "That's right, deposit all the money in the bank to earn interest... The principal will never change, so that children and grandchildren can live a luxurious life forever."

In the lounge, Zhou Buqi was having tea with Sun Guanran and Xue Baoshan, and they were going to have lunch soon.

The local tyrants in the Middle East were very enthusiastic. They brought chefs, seasonings and live sheep from Abu Dhabi by air. They planned to invite friends from East Asia to have a roasted whole lamb with the most Arabic flavor.

However, this is just an excuse.

They need time for a separate meeting, possibly with the king.

For them, this investment project is too good.

Once in operation, this may become the largest investment project ever made by Abu Dhabi's sovereign wealth fund. Although the king's younger brother personally participated in the negotiation, he didn't dare to preside over it, and the decision had to be made by the chieftain king.

Xue Baoshan sat with Sun Guanran, and said softly, "You can't be rich for three generations, and most of the time it's because of investment."

Zhou Buqi nodded, "That's right, if the descendants of the rich and powerful are all stupid idiots, it's best if they eat, drink, enjoy themselves and do nothing every day, and the interest is enough. I'm afraid that some people have great ambition, I want to do a big job, start a business or make some messy investment. Once the investment fails, I will lose all my money. For example, the Rothschild family in the United Kingdom is just leftovers from later generations."

Sun Guanran gradually understood this logic, "So for the descendants who are in charge of the huge family wealth, they don't need to create so many great achievements in their lifetime, they only need the most stable and lowest-risk property management. I would rather earn less. You can’t lose your money either.”

Zhou Buqi said: "Yes, from this point of view, these local tyrants in the Middle East are much better than many second-generation wealthy families who want to achieve great success in their careers at a young age. The key is to have self-knowledge. Airplanes, leave the money to others to manage. The more you don’t do your job properly, the more you can continue the family inheritance.”

Sun Guanran sighed, "This world is so unfair."

Zhou Buqi laughed and said, "What are you complaining about?"

"That's right, I have you!" Sun Guanran ran over, sat beside him, and whispered, "I checked the news last night, and it was scary."

"how?"

"It's disgusting to say that the daily life of a Middle Eastern prince is disgusting. Every day, women are used as seats or chairs, and women are walked like dogs every day. I have seen photos, and there are at least a dozen of them. It is said that there are And his wife."

Zhou Buqi nodded, "It's not surprising."

"It's scary." Sun Guanran warned cautiously with a terrified look, "You can discuss business with them, but you can't make friends with them, and you can't have too close contacts. Baoshan, let's keep an eye on her, don't let her He learns badly. If he learns badly, we will be miserable."

Zhou Buqi laughed angrily, "What nonsense are you talking about? Am I the kind of person who messes around when I have money? Playing the piano!"