The private equity company that cooperates with local tycoons is called Neptune Capital. Its rules are similar to those of Pluto Capital. There are also "three red lines", but the details are slightly different.

The Abu Dhabi consortium has too much money to spend and no shortage of living cash, which means they are more willing to accept longer-term and more stable investment returns.

This leaves room for maneuver.

The closure period is 10 years.

Common private equity has a closed period of about 3-5 years. There are relatively few funds with a 10-year closed period. They are generally entrepreneurial funds, such as SoftBank.

For wealthy people, this is not a problem at all.

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

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

The settlement cycle for general private equity, management fees, and custody fees is once a day, and profit dividends are settled once a year. For example, for Pluto Capital, the annual management fee is 2%, which means that 0.0055% of the assets must be deducted from the investor's account every day.

The management fee is paid to the fund manager. The fund manager's dividend is 30%, which is the income of the year settled at the end of the year. After reaching the standard, you can get the profit dividend.

However, the biggest feature of private equity is that it is "private" and can be customized with many different product designs. Public equity around the world is similar, but private equity has many variations. As long as investors agree, you can design it however you want. (

Domestic control is strict and there are few tricks)

Pluto Capital promises a guaranteed annualized return of 20%, a promised annualized return of 10% in return of management fees, and a promised annualized return of less than 0% to compensate for losses.

A very critical point here is the settlement cycle.

Ups and downs in the stock market are normal.

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

Therefore, Pluto Capital has an additional condition, which is unified settlement in the first three years.

In other words, the statistics of the first three years will be the average, and the average annualized rate of return in the past three years will be calculated as 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 and the stock falls for a long time, it can't possibly fall for three consecutive years, right? There may be big gains in some years, and slower gains in other years. Calculated on average, this is a big problem.

By reducing the risks Zhou Buqi has to bear, the "three red lines" rule can be easily bypassed.

However, there is still a slight risk.

What to do after 3 years?

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

You don’t even need to keep accounts, you can just give profits to investors and build relationships. As long as you stick to a bottom line, you can make less money and don’t lose money.

It's not that complicated for the wealthy people in the Middle East.

No matter what plans and arrangements the Federal Reserve, Goldman Sachs or others have in the financial market, no matter how the United States and Europe are trying to win over the tycoons in the Middle East... these have nothing to do with Zhou Buqi. For the tycoons in the Middle East, he has only one purpose, which is to win over the tycoons in the Middle East.

Make money! And make big money safely!

The basic terms of Neptune Capital are similar to those of Pluto, and there are also very attractive "three red lines" terms. The terms that are quite different are that the closed period of Neptune Capital is 10 years, and the dividend profits are settled uniformly for 10 years. In other words, the closed period

During these 10 years, the annualized return must be averaged.

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

As long as it expires.

The disadvantage is that it is a bit troublesome.

Failure to settle means not receiving profit dividends.

For example, if you make a net profit of 100 yuan in a year, and the settlement period is one year, you can get a profit dividend of 30 yuan at the end of the year. If the settlement period is 10 years, you will not get the profit dividend at the end of the year, and you will have to wait 10 years before you can get it.

By the end of 10 years, I have earned a total of 1,000 yuan, and after settlement, I can get a lump sum of 300 yuan.

For Wall Street, this is not a problem at all, and they can use 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 borrows 30 yuan from the private equity fund.

I borrow 30 yuan every year, and it will be settled after ten years, and it will be repaid in one lump sum.

Rules are dead.

No matter how good the rules are, once someone acts as both a referee and an athlete, the rules can be easily circumvented. The referee of Neptune Capital is Zhou Buqi, and the athletes are Zhou Buqi. He can give it to himself

Issue interest-free loans.

On the financial statements, it shows that 90 yuan was invested in stocks and 10 yuan was invested in financial derivative services... As for what stocks were bought and what financial derivative services were performed, I'm sorry, outsiders are not qualified to know.

The investment strategy of private equity is to maintain a high degree of confidentiality and operate in secret. As long as there is a little review mechanism, people like Madoff and Low will not be able to defraud for so many years without being discovered.

This is also a paradox between regulation and innovation. Wall Street's regulation is loose, and there are many financial innovations that dazzle people, as well as many big scammers. Domestic regulation is strict, and financial innovation is scarce, but stability is the key to victory. The domestic mechanism is that stability trumps all else.

, must sacrifice innovation capabilities.

Anyway...

After some communication, the wealthy people in the Middle East were very satisfied!

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

compensation mechanism.

Once the fund loses money, the fund manager must compensate investors for their losses!

In other words, if you invest money in Neptune Capital for 10 years, the worst-case scenario is that you will make no loss and no profit at all, which is great!

When the negotiations were taking a break, Sun Wanran still didn't quite understand and asked strangely: "It's strange, why do they keep looking at the terms of loss compensation? Isn't the 20% annualized return guarantee more attractive?"

Zhou Buqi smiled and said: "Because I am a rich man who has been passed down from generation to generation, and you are an ordinary person."

Sun Wanran rolled her eyes at him and said sourly: "I've been fighting with you, am I also an ordinary person?"

"I mean...well, you know the saying that you can only be rich for three generations, right?"

"Um."

"Why?"

"You're a prodigal." Sun Wanran pouted, then covered her mouth and smiled, "By the way, you are still the second generation of rich people. I remember when we were in school, we were all discussing you in private, saying what you were wearing today.

Famous brands are so rich."

Zhou Buqi hummed: "How much does it cost to buy a famous brand?"

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

"That's the difference."

"What's going on?"

"For the rich, how much can they spend on buying famous brands, luxury cars, even luxury houses, yachts, and private jets? Forbes estimates that my net worth is US$12 billion, even if this is accurate.

If you put 12 billion U.S. dollars in the bank every year, you can get 600 million U.S. dollars in interest. What kind of luxury houses, airplanes, and yachts can’t be bought with these 600 million U.S. dollars?"

Sun Wanran's beautiful eyes widened, "Yes, if you keep all the money in the bank and earn interest...the principal will never move, then your children and grandchildren can live a luxurious life forever."

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

The local tycoon in the Middle East was very enthusiastic and flew in chefs, seasonings and live sheep from Abu Dhabi, intending to treat East Asian friends to a meal of the most Arabic-style roasted whole lamb.

However, this is just an excuse.

They need time to have a private meeting and possibly communicate with the king.

For them, this investment project is great.

Once it is put into operation, this may become the largest investment project in the history of Abu Dhabi's sovereign fund. Although the king's brother personally participated in this negotiation, he did not dare to take charge of it, and it was up to the king of the emirate to make the final decision.

Xue Baoshan and Sun Wanran sat together and said softly: "You can't get rich for more than three generations. Most of the time it's because of investment."

Zhou Buqi nodded, "Yes, if the descendants of the rich are all nonsense and do nothing but eat, drink and have fun every day, it would be best to just earn interest. I'm afraid some people have great ambitions and lack of talent.

If you want to do something big, start a business or make some messy investment. Once the investment fails, you will lose everything. Just like the Rothschild family in the UK, future generations will just mess around and become scraps."

Sun Wanran gradually understood this logic, "So for the descendants who are in charge of the family's huge family wealth, they do not need to create any great achievements in their lives, they only need the most stable and lowest-risk property management. It is better to earn less,

You can’t lose your principal either.”

Zhou Buqi said: "Yes, from this point of view, these rich people in the Middle East are much better than the second generation of many wealthy families who want to achieve great success in their careers at a young age. The key is to have self-awareness. Everyday beauties with beautiful cars, private

Airplanes, leave the money to others to manage. The less you do business, the more you can continue the family legacy."

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

Zhou Buqi said amusedly: "What are you complaining about?"

"Yes, I have you!" Sun Wanran ran over, sat next to him, and whispered: "I checked the news last night, and it was scary."

"What's going on?"

"It is said that the daily life of a Middle Eastern prince is disgusting. He uses women as seats or armchairs every day, and walks women like dogs every day. I have seen photos, there are at least a dozen of them. It is said that there are

And his wife."

Zhou Buqi nodded, "Not surprising."

"It's so scary." Sun Wanran looked frightened and warned carefully, "You can discuss business with them, but you can't make friends with them or have too close contact with them. Baoshan, let's keep an eye on her, don't let her

He has learned bad things. If he has learned bad things, we will be in trouble."
Chapter completed!