How does a third party financial services giant invest in a 3-year net profit?

In 3 years, the size of the second only to Noah's fortune. Liu a few years ago, Hu Tianxiang was the sales director of a trust company, who occasionally worked with Noah's Fortune founder Wang Jingpo, who would come and look for a trust project. 2010, Noah's fortune landed on Nasdaq. And just in the same year, Hu Tianxiang's identity changed, leaving the company he was working for, creating a huge investment in the Golden Spike mansion on the south of Shanghai's Pudong Road, and agreeing with Noah's wealth to provide a third party financial service for high net worth people. Three years later, former partners have become rivals. After the establishment of the huge investment, they got the angel investment of Jiangnan spring. Founded at the beginning of 2011, the company after-tax net profit directly to 15 million yuan, then the 2012 nearly 30 million yuan, 2013 60 million yuan, and this year is expected to exceed 120 million yuan, almost doubled the growth rate. Now, the mega-faction has become the industry leader with more than 700 employees from a small team of more than 10 people, and may expand to 2000 next year, growing at a pace comparable to any other. Why is there a burst of sexual growth? Now there are thousands of third party financial institutions in China's financial markets. Pure financial management products sales channels of more than 95%, that is, from banks, trust companies, such as procurement of products sold to customers, earning the sale of the difference, that is, the so-called wealth management business. This model can only make money from the high rate products sold. Most of these companies do not have the ability to manage assets. The huge investment in addition to the foundation of wealth Management, the asset management as a core business, and the business is its own development projects. In the wealth management business, about half of the products are sourced from outside, and about 50% per cent of the projects come from huge-investment asset management companies-mega-continents. The asset management business of the giant continent is to combine the private equity investment parent fund, the real estate private funds, the real estate collection and purchase consultation, the real estate assets disposition and the integration for the main, for the high net worth crowd, the rich family and the institutional investor carries on the portfolio investment, the asset disposition, and provides The first year after the establishment of net profit of 15 million yuan, the huge investment presented by the explosive power in the Third-party financial institutions is rare. The reason, completely rely on Hu Tianxiang for many years the accumulation of customer resources. Hu Tianxiang graduated from the National Economic Department of Renmin University of China, the sales of financial products started, the first job to do Citibank in North area sales leader, then become HSBC fund VIP management director. Before he started his business, he was the general manager of Hangzhou Industrial and commercial trust sales and trading company. Three work experience, so that Hu Tianxiang at the same time with third-party financial institutions in different areas of product sales experience. From banks to securities and funds to fixed income trusts, the only thing that has not been done is insurance products. "This lays the foundation for the first explosive growth of the huge investment." Hu Tianxiang already had a lot of sales resources before entering the Morgan Stanley Trust, the company's work on Hu Tianxiang. He admits: Basically send a short message to reserve customers can be full. Every day to live a desultory and unrestrained happiness "life, Hu Tianxiang secretly reflect:" Is this my future life? " Years of sales experience in financial products, let Hu Tian Xiang gradually realized: most of the products of excellent, short supply, but the category is relatively single, 90% or so are real estate products, and often only out of one or two per month. Due to its business proficiency, Hu Tianxiang is often pulled by clients to help screen out some of the products of an external company. For example, the company may have a two-year project, but the customer wants a one-year period, but the company does not. Customer said I bought a lot of real estate, want to look at other projects, the company does not. "In situations where customer demand is often not met, Hu Tianxiang sees opportunities: At the time, the original entrepreneurial intent was to meet the different investment needs of customers, to provide more products to investors." "So, Hu Tian Xiang exit business, set up a third-party financial institutions." This year, the same business of the Noah's wealth just in the United States listing. How big is the space in the third party finance market? This is the question that Hu Tianxiang is often asked. In fact, he has a clear answer: Hong Kong has 7 million people, the service of the local Third-party financial institutions already have four listed companies, while in the mainland only Noah wealth a company, and Noah's wealth and the huge investment customer overlap rate of not more than 5%. According to the public data: in the United States, Australia or the United Kingdom, through Third-party agencies or independent studios to finance about 50% of the total population, about 10% of people in Hong Kong through Third-party Financial management company, and in the mainland this data only 2%~3%. It is because the market is big enough to support the company's doubling growth every year. "The first year, the company almost all the energy used in maintenance Hu Tian Xiang original customer resources." He then apportioned his client resources to a seven or eight-person team for dedicated maintenance. Now I have less than 10% customers, are the new team developed customers. "Hu Tianxiang said. Before the shareholders ' easy to reside in China, Liao Weixi, the incumbent vice chairman and CEO, has provided a lot of project resources for the company's development, and Hu Tianxiang to form a complementary. Before the stake in the huge investment, Liao Weixi was a Singapore listed company Ren Heng Land Group Shanghai Company deputy general Manager, has 15 years experience in the real estate industry, from the project to the final product sales, he is familiar with each link, in the risk control is also an expert. If you start with personal connections in the first year, you'll have to talk about products and brands for the next two or three years. "2011-2012 years, with the easy to live in China, Sina, Qing branch and the investment of Jing Lin four shareholders successively entered, the huge investment brand awareness and customer trust has been greatly improved." And Jindi, Evergrande, Vanke and other real estate leading cooperation, but also listed company real estate sales leader easy to live in China backing, the huge investment can easily get a lot of quality projects. According to Hu Tianxiang, easy to live in China to contact more than a year before the decision to invest. Easy to live China brings fixed incomeProducts, Lam Investment and the Qing Ke group has brought the PE two-tier market resources. At present, and Sina's Internet financial products to discuss cooperation. "Hu Tian Xiang introduced shareholders to improve the line of business considerations." Shareholder resources to bring quality projects to mention the value of third-party financial institutions, popular, is like Ctrip to provide a full category of financial products for customers to choose. The products are divided into fixed income categories, PE, art funds, internet finance and other types of product lines. Among them, a number of products are the vast investment of independent research and development, such as accounts receivable factoring products, asset securitization products, two-tier market special investment opportunities products, film and television fund products and so on. There is a screening process for the product, which is the value of a third-party financial institution. "In the external procurement of products, the huge faction has very strict wind control standards." From the project will to due diligence, and then to the wind control, the online meeting. Hu Tianxiang gives a data: 2013 contacted about 1200 or more projects, the last real online only 60, visible elimination rate is high, it also shows that the heavy pie for product screening prudence. This is related to the experience of many project team members prior to doing projects with trust companies or real estate funds, and more often, the mega Pie will refer to trust Company's wind control system and standards. The company has more than 10 people's wind control team, responsible for due diligence. The Wind Control committee after the clearance, there is a project on the line, and finally will decide whether the online. In asset management companies, they have a dedicated project sourcing team with six or seven-person team-specific production projects, equivalent to a small trust company. Many of the projects come from shareholder resources, and shareholders are also recount in the project's due diligence and risk control. Now, real estate projects account for about 60% of the total project. The absolute advantage of the great faction lies in the real estate project, on the one hand, the risk of real estate project is relatively good control, on the other hand, it is the result of natural selection wind control after making the fixed income products such as mineral energy. So far, the real estate project is not a value risk, but a liquidity risk. "They also have hard terms on risk control, such as only the top 100 real estate and so on." Even if the real estate situation will be volatile, the failure of the company, the acquisition and so on, does not mean that our company's choice of projects have problems. "First of all, there are more than 60,000 Chinese real estate companies, we almost only do the top 100, and second, now do is basically all listed companies or state-owned projects; third, easy to live in China's Kerry data, China's real estate is the most authoritative data companies, can provide a lot of valuable data. "These guarantee the quality of the great pies, and the company only offers large companies such as listed companies, to ensure high profitability and high security." Although the sales force of the huge investment itself is not yet comparable to Noah's wealth, they have their own advantage-to get high-value projects. Developers are more willing to work with the huge investment cooperation, because the huge investment can not only solve the financing problem, but also for developers to provide from the land to sales and other complete services, while solving the projectLiquidity risk problem. When the house is finished, consider selling it, and other third party wealth management companies cannot help them solve the problem of selling, but I can. Because my shareholders are easy to live in China is to do real estate sales. "It is understood that when Noah wealth to do asset management of the first fund is the real Estate fund, is in the huge investment in the current shareholder, easy to live in China, chairman of the Board of Directors, President Zhou Yi with the help of the establishment." Zhou Yi was also the individual shareholder of Noah's wealth. After that, Zhou Xin for a variety of reasons to quit, and then become a huge investment shareholder. Do PE two level market lam assets, used to be Noah wealth in the U.S. circulation market, the largest shareholder, now also become a huge investment in the original shareholder. It can be seen that Noah's wealth was initially the asset management advantage has shifted to the huge investment. This gave Noah a lot of money to stimulate. How does Citi provide customers with more professional and standardized services? The vast majority of third-party financial institutions are to take a one-to-one Customer manager system, the Customer Manager's professionalism determines the quality of service. Often the phenomenon is that once a wealth manager leaves, customer resources are also lost, and service professionalism is not guaranteed. And the mega-pie is modeled after Citigroup's Hunter + Farmer + Gardener, according to its own circumstances. Each customer is maintained by the Business Development Department, the Customer management department and three departments of the Customer service division. Three Department assembly line operations: first by the Business Development Department (Hunter) out to find prey ", is responsible for the wide range of guests, the team is composed of junior staff, and then by the Account Manager (farmer) responsible for customer maintenance, Customer Manager is the highest professional staff, and ultimately by the Customer service department (gardener) to do the later maintenance work, Responsible for gifts, check customer complaints and feedback, etc. A farmer "with 5 hunters", 6 people form a team. Sometimes, some customers are more professional than money managers, in order to ensure the professionalism of the team service, the farmer "has 7-10 years of work experience." In addition to ensuring service professionalism, it can also control costs. Hu Tianxiang counted the account, if a headhunter 3000 yuan, 5 people's salary is 15,000, plus a ' farmer ' per capita salary of 15,000 yuan, divided by 6, on average only 5,000 yuan salary. Now it is hard to find a professional financial manager for 5000 yuan in the market. "And, many financial managers in the market are not professional-oriented to find customers, but sales-oriented, as long as there is customer resources, even if they do not know how to finance, may be recruited by Third-party financial institutions." Hunter + farmer + Gardener "model was first invented when Citibank entered China. It took Citigroup four or five years to develop this system of management-node and systematization. It is worth mentioning that Hu Tianxiang and Liu (chief investment Group president) is Citigroup's first batch of 17 employees of two, Liu has many years of experience in financial banking, has been in Citigroup, ABN Amro and other banks as personal banking and private banking business of the President of the Office. They have all witnessed a process of continuous improvement in the Citibank model. According to Hu Tianxiang introduced, this setThe management model seems simple, but it does have a very low threshold for imitation. It took four or five years for Citi to develop this system of management-node and systematization. Only Shenzhen foreign banks, ABN AMRO Bank, and the Great China Bank have succeeded. The three banks ' explorers are from Citi's first employees. Liang, chief operating officer of the mega-investment company, has been in charge of the East China business in Singapore's Dahua bank and has been engaged in sales management for many years at ABN Amro Bank and RBS Wealth management department. It is clear that the mega-faction team follows Citi's operating genes. In this model, there are a lot of management nodes that need to be controlled, for example, there are many key nodes in the compensation system, how can the gardener and the hunter manage? How to promote, assess and eliminate marketing activities? Each department has a detailed management node, or even refinement to the early, party how to open, how to recruit and so on. The control of these key nodes, in the final analysis, the management of all aspects of standardization, to achieve replicable services. As the pattern continues to improve, efficiency will continue to show up, this may be Hu Tianxiang has the confidence to the current more than 700 employees, 23 business institutions, expansion to next year's more than 2000 employees, the future of the mega-faction will also be in Guangzhou, Dalian, Qingdao, Xian, Hong Kong layout, expand the scope of business. In addition, they will be the wind control into standardized things, the sale of financial products will have standardized wind control conditions. For example, must be with the hundred real estate cooperation, asset and liability ratio can not exceed 70%, accounts receivable can not exceed 50% ... Which products I can do, which products I can not do, in fact, can also be standardized. The "Create Iron law" huge investment in wealth management line charged one-time sales costs, the asset management line of business is charged with the project's ongoing management fees and excess income sharing. Asset management because of participating in the project management process, we call the management process and the process of investment and thawing. Wealth management is about financing. "Both lines of business are charged to upstream suppliers," he said. Compared to the mature third party financial institutions, many of the downstream customers charged service charges. But in China's view, charging customers is very difficult. Almost all third party financial institutions collect channel fees from upstream product suppliers, that is, to financial institutions. This is likely to lead to a widespread phenomenon: third party financial institutions are driven by interest and are likely to give priority to selling more of the financial products to customers, ignoring the investment risks behind these high-margin products. How to avoid this risk? The huge pie is that each product to the financial division of the same Commission, so that financial managers in the sale of products, can objectively and fairly introduce each financial product income class and risk index. Even the products that my own asset management company (Mega continents) take over, the huge investment in the financial division is still the same. This is the Iron law. "However, the huge investment is also gradually exploring how to charge downstream." Specifically, the huge investment to the financial managers of the Commission only one-year, two-year project difference. The two-year period is longer and the Commission is relatively higher. All items in one year or so, the Commission is the same for money managers. Distinguished from the membership of a number of institutions, the huge investment in general only statistics transactions customers, the current number of more than 8,000, the continued purchase rate of more than 80%. In fact, the overall profits of the mega-investment companies are not very high in their peers. As a successor, Hu Tianxiang to take small profits but quick turnover "strategy, willing to put a lower commission. Do not want to do short-term money business, this is not our goal. Our concern is not to take more than a few of the Commission, but how to avoid project problems. "The mega-pie wants to do a hundred year business." What is the moment pie three years net profit over billion? ★ Not only to do wealth management, but also the ability to do asset management. ★ Have fixed income category, PE, Art Fund, internet finance and other rich product lines, and real estate projects occupy an absolute advantage ★ Real Estate developers are more willing to work with the mega-faction, because not only can solve the financing, but also to provide it from the land to the sale of one-stop service to solve the project Liquidity risk ★ Use unique Hunter + Farmer + Gardener "Operating mode, the management of the various aspects of standardization ★ each product to the financial division, the same as the financial division can be guaranteed to sell finance products when the objective, impartial ★ use small profits but quick turnover" marketing strategy