Soros, Cai Chongxin, Li Yanhong’s wealth is reserved.
Editor’s note: This article comes from WeChat public account “Prism” (ID: lengjing_qqfinance) a>, author Wen Shijun, editor Zhang Qingning. Authorized release.
At the beginning of the Spring Festival in 2020, the epidemic of black swans is circling, the historical collective meltdown of multinational stock markets, oil prices, gold prices and even digital currencies are scrambling to dive.
The 89-year-old Buffett said in an exclusive interview with Yahoo Finance, “If you persist long enough, you can see anything in the market. For me, it may have taken 89 years. Experience. “
“Live for a long time”, the summary of Chinese netizens is concise.
For people on the wealth pyramids such as Buffett, they are not only concerned about the fluctuation of wealth, but the unity of wealth and their own will, and let the power of this unity through the turbulent economic cycle.
The British Economist magazine mentioned in its cover story “The Rise of the Family Office” that every investment wave stems from social development-after the Second World War, after two decades of the rise of the middle class, the fund industry in the 1970s Great development; after the financial crisis of 2008, the exposure of risks and the uncertainty of opportunities also made wealthy customers begin to choose family offices.
At the Berkshire Hathaway Shareholders’ Meeting, when asked “if there is a family office”. “We already have a family office,” Munger said. “Here it is (Berkshire Hathaway).”
Forbes January 2020 data shows that nearly half of the global billionaire’s $ 9 trillion assets are managed by family offices.
What kind of existence is this and how does it go through the economic cycles?
Saros family office example
In 2011, Soros, who successfully predicted the 2008 economic crisis, and still made money in the crisis, announced his retirement.
At this time he was 81 years old. As for the way to retire, it is to convert its Soros Fund Management, LLC from a hedge fund into a family office, which is only responsible for managing and investing the wealth of family members.
According to Bloomberg News in 2017, the Soros family office managed more than $ 26 billion.
For family offices, the core of smoothing risks across cycles is time. Compared with other institutions, family offices can make longer-term, focused investments.
A set of data from CIBC Bank of Canada shows that for the past 20 years as of December 31, 2018,taste.
In early 2017, Sina Technology published a Baidu internal conversation with Li Yanhong’s wife, Ma Dongmin: “After 2007, I left Baidu due to physical and family reasons. Since 2012, I started the Family Office for 4 years. Office). It should be said that it is this special experience that made me know Baidu more deeply.
In September 2014, Alibaba was listed on the New York Stock Exchange, the largest IPO in the history of U.S. stocks.
In April 2015, the Wall Street Journal reported that Cai Chongxin, one of Alibaba’s founders, set up a multi-billion dollar family office in Hong Kong-the main body is Blue Pool Capital.
A material obtained by “Prism” shows that Blue Pool Capital, located in the Second Exchange Square in Hong Kong, serves “two family offices” and a hedge fund called “Absolute Partner”.
The material also states that “most of the employees of Blue Pool Capital have worked in the Hong Kong office of Investor AB in Sweden”. Investor AB is Cai Chongxin’s old owner before joining Alibaba. Investor AB itself is controlled by the Swedish Wallenberg family.
The British Financial Times reports that Blue Pool Capital manages most of Cai Chongxin’s wealth and Jack Ma’s wealth. A Caixin Weekly report in 2016 pointed out that when Cai Chongxin initiated the establishment of Blue Pool Capital, Jack Ma and several Ali executives participated in it.
When Reuters reported that Blue Pool Capital was bidding for L’Oreal ’s cosmetics brand The Body Shop, it equated Blue Pool with Jack Ma and the title was directly “Jack Ma was invited to participate in L’Oreal’s Body Shop.”
Blue Pool Capital is very interested in Pan-Biomedicine’s investment (see table), which is in line with the family office’s long-term investment growth style.
![The real Dinghao will not blow up, because there is a family office]()
Some equity investment projects of Blue Pool Capital in recent years Data source: crunchbase.com
Blue Pool Capital also serves Cai Chongxin’s personal interests.
In 2019, Tsai Chongxin purchased the remaining 51% of the NBA Brooklyn Nets for $ 2.3 billion, which was also completed through Blue Pool Capital.
May 2019 Cai Chongxin watching a basketball game at the Barclays Center in New York Source: USA TODAY
American “New Money”: Radical Industry Investment
Family offices are important players in global capital markets.
Family offices will compete directly with banks or private equity projects; they will also invest in subjects that pure financial investors will not bother about, rich and willful; and putting family and charitable causes into family offices has always been a routine operation.
Bezos Expeditions, the family office of Amazon founder Bezos, is very active. Its official website shows that investment projects include not only star projects such as Twitter, Washington Post, Juneau Medical, Workday, but also early venture capital such as freight version Uber Convoy, cloud computing Domo, and robot Rethink Robotics.
Of course, it has also invested in some extremely willful projects-
For example, the “F1 Engine Recovery Plan”-the goal is to rebuild the F-1 engine that burns 2.7 tons of rocket kerosene and liquid oxygen per second; Apollo 11;
Blue Origin project with space tourism and moon settlement as its core business;
Even invested in a day and night thermal cycle, 152 meters high, installed in a cave 600 meters above the ground, running a 10,000 year clock.
Bezos Expedition Team investment project ten thousand years Source: dogonews.com
Omidyar Network and Webb Investment Network are the family offices of eBay founder Pierre Omidyar and eBay Chief Operating Officer Maynard Webb.
Prism looked at the respective official websites of the two institutions and glimpsed their investment interests.
The projects invested by Omidyar Networks are very diverse, many of which are not-for-profit projects: such as the African Digital Rights Center, Wikipedia, AmazonConservation Action, Khan Academy.
Weber Investment Network is more concerned about the Internet and fintech. Projects that have exited include Appurify (acquired by Google), CardSpring (acquired by Twitter), WePay (acquired by JP Morgan Chase), and so on.
Some “New Money” family offices have even become important levers for leveraging your business.
According to the information released by Dell’s official website, in October 2013, Michael Dell completed a $ 24.9 billion Dell privatization transaction. In October 2015, EMC was consolidated for $ 67 billion. The two shocking transactions were completed by family office MSD (short for Michael S. Dell) in conjunction with Silver Lake Capital.
Dell founded MSD in 1998 at the age of 33.
Today, MSD has branches in New York, Los Angeles, and West Palm Beach, Florida, which the wealthy people love. Investments are scattered in different industries such as real estate, internet, energy, catering, communications, finance, construction, and automobiles.
Family offices have some unique advantages when investing. In 2017, the 50-year-old American-based plastic container maker Ring Container was sold to MSD by the son of the founder, citing that the family office is a long-term investor, not just a financial investor who earns the difference.
SFO to MFO: Rockefeller evolution
Whether it is only focusing on investment or the family “big housekeeper”-as long as it serves a family, it is called a single-family office (SFO).
Single family offices date back to the mid-19th century.
The modern industrialization of large-scale production and division of labor has separated capital and enterprises, and also separated personal wealth and individual business. The steel and dense fog of the industrial era created the world’s first top rich.
In 1882, John Rockefeller, 43, set up a family office to hire professionals, take care of assets and charity.
For more than a hundred years, the Rockefeller Family Office has maintained the family’s wealth and united the heirs. According to Forbes data, as of June 2016, the number of members of the Rockefeller family has reached 174.
1882 Rockefeller Standard Oil company stock Source: de.wikipedia.org
Family offices are important players in global capital markets.
Family offices will compete directly with banks or private equity projects; they will also invest in subjects that pure financial investors will not bother about, rich and willful; and putting family and charitable causes into family offices has always been a routine operation.
Bezos Expeditions, the family office of Amazon founder Bezos, is very active. Its official website shows that investment projects include not only star projects such as Twitter, Washington Post, Juneau Medical, Workday, but also early venture capital such as freight version Uber Convoy, cloud computing Domo, and robot Rethink Robotics.
Of course, it has also invested in some extremely willful projects-
For example, the “F1 Engine Recovery Plan”-the goal is to rebuild the F-1 engine that burns 2.7 tons of rocket kerosene and liquid oxygen per second; Apollo 11;
Blue Origin project with space tourism and moon settlement as its core business;
Even invested in a day and night thermal cycle, 152 meters high, installed in a cave 600 meters above the ground, running a 10,000 year clock.
Bezos Expedition Team investment project ten thousand years Source: dogonews.com
Omidyar Network and Webb Investment Network are the family offices of eBay founder Pierre Omidyar and eBay Chief Operating Officer Maynard Webb.
Prism looked at the respective official websites of the two institutions and glimpsed their investment interests.
The projects invested by Omidyar Networks are very diverse, many of which are not-for-profit projects: such as the African Digital Rights Center, Wikipedia, AmazonConservation Action, Khan Academy.
Weber Investment Network is more concerned about the Internet and fintech. Projects that have exited include Appurify (acquired by Google), CardSpring (acquired by Twitter), WePay (acquired by JP Morgan Chase), and so on.
Some “New Money” family offices have even become important levers for leveraging your business.
According to the information released by Dell’s official website, in October 2013, Michael Dell completed a $ 24.9 billion Dell privatization transaction. In October 2015, EMC was consolidated for $ 67 billion. The two shocking transactions were completed by family office MSD (short for Michael S. Dell) in conjunction with Silver Lake Capital.
Dell founded MSD in 1998 at the age of 33.
Today, MSD has branches in New York, Los Angeles, and West Palm Beach, Florida, which the wealthy people love. Investments are scattered in different industries such as real estate, internet, energy, catering, communications, finance, construction, and automobiles.
Family offices have some unique advantages when investing. In 2017, the 50-year-old American-based plastic container maker Ring Container was sold to MSD by the son of the founder, citing that the family office is a long-term investor, not just a financial investor who earns the difference.
SFO to MFO: Rockefeller evolution
Whether it is only focusing on investment or the family “big housekeeper”-as long as it serves a family, it is called a single-family office (SFO).
Single family offices date back to the mid-19th century.
The modern industrialization of large-scale production and division of labor has separated capital and enterprises, and also separated personal wealth and individual business. The steel and dense fog of the industrial era created the world’s first top rich.
In 1882, John Rockefeller, 43, set up a family office to hire professionals, take care of assets and charity.
For more than a hundred years, the Rockefeller Family Office has maintained the family’s wealth and united the heirs. According to Forbes data, as of June 2016, the number of members of the Rockefeller family has reached 174.
1882 Rockefeller Standard Oil company stock Source: de.wikipedia.org