In the cold winter of fundraising, more and more VC/PE are looking at family offices.
Editor’s note: This article is from the micro-channel public number “investment community” (ID: pedaily2012) , Author: Yang Jiyun Wendan.
The mysterious family office once again entered the public eye.
Investment industry (ID: pedaly2012) November 30 news, Bloomberg reported that Ray Dalio, the founder of the world’s largest hedge fund Bridgewater, is preparing to set up a family office in Singapore to manage its presence in Asia Regional investment and philanthropy.
This is another super rich man who set up a family office in Singapore after Shu Ping, the wife of Haidilao founder Zhang Yong. Dalio’s background is not small-in 1975, when he was only 26 years old, he founded the Bridgewater Fund in his two-bedroom apartment. Today, Qiaoshui manages about 148 billion U.S. dollars in assets, and the 71-year-old Dalio has a personal net worth of more than 15 billion U.S. dollars, ranking among the top 30 richest people in the United States.
Qiaoshui established its first branch office in Asia, which is regarded by the industry as a signal to “continue to invest heavily in China and the Asia-Pacific region”. At the same time, the family office, as a group of hidden LPs, has gradually moved to the front of the stage. In the cold winter of fundraising, more and more VC/PE are looking at family offices.
With a net worth of US$15 billion, The head of Qiaoshui established a family office in Asia for the first time
Another super rich set up his own family office in Asia.
This time the protagonist is Ray Dalio, the founder of Bridgewater, the world’s largest hedge fund. He is preparing to set up a family office in Singapore to manage his investment and philanthropy in Asia.
Dalio’s spokesperson said in a statement, “Dalio has maintained good ties with Singapore and China for the past 30 years. He likes and admires these two countries very much.” He added that it is now The “best time” to open a family office in Singapore, but did not disclose the specific timing or staffing plan.
Family office can be said to be the standard configuration of the world’s super rich. It is a company set up by the top rich specifically to manage personal wealth. It usually manages investment, charity activities, trust funds, daily activities and other matters for the rich. In 1975, Dalio, who was only 26 years old, founded the Bridgewater Fund in his two-bedroom apartment. Today, Bridgewater manages approximately US$148 billion in assets, and Dalio, now 71, has a personal wealth of more than 150. Billion dollars, among the richest in the United StatesRanked among the top 30.
For a long time, Bridgewater Fund has a soft spot for emerging markets, especially Dalio is very interested in China. In March 2016, Bridgewater Fund entered China and completed the registration of private equity fund managers in June 2018, officially opening the private equity business in China.
According to the data, Qiaoshui’s first product in China is called “Qiaoshui 24/7 Investment in China Private Equity, Fund One”, which was established on October 9, 2018. This first fund achieved an annualized rate of return of 22%. In September this year, Bridgewater announced the issuance of the No. 2 all-weather enhanced China Private Equity Securities Investment Fund, which has raised approximately RMB 900 million.
In the second and third quarters of this year’s epidemic, Qiaoshui Fund also increased its positions in China significantly. Q2Alibaba rarely ranks among Qiaoshui’s 6th largest heavyweight stocks in the US stock market—previously Qiaoshui’s top ten major assets They are all composed of ETFs, and individual stocks are rarely transferred to the top ten heavy warehouses. By the end of the third quarter, Qiaoshui continued to increase its holdings of Alibaba as the fourth largest holding target, and also increased its holdings of Chinese e-commerce giants such as JD.com and Pinduoduo, as well as Baidu, Weilai, Huya, and other Chinese stocks, in addition, add B station, Shell looking for a house, etc., added a large number of Chinese stocks.
Dalio has repeatedly emphasized recently that whether it is for long-term diversification purposes or short-term investment tactics, it is necessary to invest “a significant portion” of its assets in Chinese assets. The establishment of an office in Singapore to manage investment this time is seen by the industry as a signal that Dalio will continue to invest heavily in China and Asia Pacific.
A set of data from UBS shows that due to the rapid rebound of Chinese stocks and technology stocks this year, and Asian companies have greater exposure to these two, Asian family offices perform better than their global counterparts. It pointed out in the report, “Because family office business in Asia can involve more technology companies and the Chinese securities market, considering personal investment and trust structures, it is more suitable for investors’ long-term development than family offices in other countries. .”
The Haidilao boss set up a family office to to take care of the husband’s and wife’s 130 billion assets
Haidilao has also set up a family office in Singapore.
At the beginning of this year, the investment community learned that Shu Ping, the co-founder of Haidilao, opened a family office in Singapore in 2019. For the standard business of this rich family, Haidilao finally joined in after achieving huge wealth accumulation.
Since 2009, the Singaporean government has introduced policies to lower the threshold for setting up single-family offices and provide more preferential tax policies. It is reported that once a high-net-worth family has established a single-family office in Singapore, three family members can work locally in Singapore. After two to three years, they can apply for permanent residency in Singapore. This is obviously very attractive to high-net-worth families.
Shu Ping and Zhang Yong, the founder of Haidilao, are married. From 1994, 4 people started with 8,000 yuan, and now it has become the world’s largest hot pot chain giant. The growth history of Haidilao is also the history of wealth accumulation of the Zhang Yong family.
On September 26, 2018, Haidilao was successfully listed on the Hong Kong Stock Exchange, and its market value exceeded HK$200 billion. In the prospectus, Zhang Yong and his wife jointly held nearly 70% of Haidilao’s shares, and then their nationality became Singapore.
In August of this year, Forbes released the 2020 Singapore Rich List. Many large families sharing wealth are on the list. Among them, Zhang Yong and Shu Ping became the richest man in Singapore with a net worth of US$19 billion (about 130 billion yuan). ). This is an increase of US$5.2 billion from their wealth of US$13.8 billion when they became the richest man last year.
According to Singapore media reports, the two are located in GThe Good Class Bungalow of ALLOP ROAD was purchased for S$27 million (approximately RMB 135 million) in 2016, with a total area of approximately 1,476 square meters, and is located close to the Singapore Botanic Garden.
The story of Haidilao’s wealth continues. In January this year, Haidilao also began its investment path. Haiyue Quantitative Investment, the investment platform of the group, hopes to build a first-class quantitative investment platform in China. It is worth mentioning that Haiyue Quantitative Investment’s only stock East Shanghai Haiyue Investment Management Co., Ltd. foreign investment Many star private equity funds, including Sequoia Capital China Fund, CDH Investment, Yunfeng Fund, Zhongding Capital, etc.
The hidden funder behind VC/PE, Chinese family office doubles in 10 years
At present, family wealth is becoming the hidden gold master behind VC/PE.
It is undeniable that the rapid economic developmentThe strong demand for the inheritance of wealth has created a huge market. When the wealthy family collective comes to the critical point of wealth transfer, it is inevitable that the first generation will meet with the second generation. How can the accumulated wealth be passed on? This has become a problem that will make China’s 2 million founders, rich generations, entrepreneurs, and business owners increasingly anxious in the next 10 years.
A report on family offices by the wealth management agency Haitou Global shows that in the past ten years, the number of high-net-worth individuals in Asia has risen to account for a quarter of the global total, and the scale of assets is also growing. The needs of high-net-worth families for wealth planning, wealth inheritance, and family inheritance highlight the necessity of family offices and directly stimulate the growth of the number of family offices in Asia. According to its statistics, the number of family offices in China has doubled in ten years.
Family wealth has gradually become an indispensable force in the VC/PE circle. “In some relatively large family wealth allocations, private equity accounts for at most 50%, and the average market share is about 20%.” The head of an asset allocation agency in Beijing introduced to the investment community.
At the same time, the “2020 China Family Wealth and Family Office Survey Report” shows that in the past 12 months, the average return rate of Chinese family offices was 11%. Private equity is the best performing asset class, with a return on direct investment of 19% and a return on fund investment of 15%. Real estate also performed well, with a return on direct investment of 14% and real estate investment trusts (REITs) of 9.0%.
This is not without a trace. Xiaomi went public that year and became the legendary Morningside Capital (now Wuyuan Capital), which can be said to be a classic case of family wealth obtaining high returns in the field of private equity. Tracing back to the history of Morningside Capital, it can be seen that it was the first Morningside Family Fund founded in the United States by Chen Qizong and Chen Lezong, the descendants of Hong Kong Hang Lung Group founder Chen Zengxi. Around 2008, Morningside Capital’s external fundraising gradually became an open-end fund.
The Blue Pool Capital of Jack Ma and Cai Chongxin not only invests in multiple hedge funds, but also invests in multiple projects in the fields of healthcare and Internet consumption, including Hua Medicine, Tengsheng Bo Medicine, etc.
In 2020, when the head effect of fundraising becomes more and more obvious, VC/PE will focus on family offices. A researcher who focuses on family office business told the investment community, “At present, whether it is GP, LP, or FA, there are a lot of discussions on family business in China. GPs want to take the money here, even many head GPs. .”
Nowadays, as more and more family offices in Asia, such as Qiaoshui and Haidilao, are quietly established, VC/PE is anxiously waiting for them to take action.