The Magnolia officinalis Capital to do the Chinese version of KKR

"By 1987 almost everyone has a lot of money, but we have to have the largest amount of money in order to distinguish us from others, and to let everyone know that we have the most money, everyone knows that the biggest business must be ours." "This passage, Rettel, is contained in the textbook Book of the Equity investment community, the barbarian at the door."　　Rettel is the fifth general partner in KKR's history, which was promoted in 1986. History is always strikingly similar. In China in the 2009, if you ask a senior equity investor, who can make an equity investment of more than RMB 10 billion? The answer is only four words: Magnolia officinalis Capital (Hopu investment Management) or a person: Fang. ⊙ newspaper reporter Yu Jingfei May 12, a news about Bank of America to reduce the total value of CCB 7.3 billion U.S. dollars (a total of 13.509 billion shares of the CCB, accounting for 5.78% of the total share capital), in the market stir up uproar. The shock first came from such a huge deal that no investment banks like Goldman Sachs and Merrill Lynch were involved as financial advisers. After the news became clearer, it was found that the holder was a consortium composed mainly of Chinese people, who led the artificial Magnolia officinalis capital. Magnolia officinalis Capital of a total of only 2.5 billion U.S. dollars, some "people who do not eat grapes" have said, "Do not know where Magnolia officinalis got so much money from the stock?" "It is understood that the Bank of America to reduce the construction bank, its clients, in addition to Magnolia officinalis Capital, but also includes China Life, BOC International, and Singapore's Temasek holding company." Temasek has already owned 5.65% per cent of CCB. The transaction price of the deal, compared to the construction Bank of the previous trading day of the closing of 14.3% discount.　　The discount was even greater than 12% of BofA's 2.8 billion-dollar stake in CCB's sale this January. As early as January this year, Magnolia officinalis Capital has begun to sell foreign strategic investors to the Chinese bank shares of the reduction. At that time, Hopu spent HK $5.54 billion, buying 3.24 billion shares of Chinese Bank of China from RBS, accounting for 4.26% of the 1.278% and H shares of its total share capital.　　This is the first such deal to be completed by Hopu Capital. Fang Fenglei, chairman of Hopu Capital, recently expressed confidence in the Chinese banking sector at a small seminar. He said, "the Chinese government will not let China's banking problems when the once-flourished financial leaders are mired in a systemic crisis in the banking system of Europe and the United States."　　"In the history of China's equity investment, Hopu has created the first case of a tens of billions of-yuan equity investment sponsored by China's Pure private investment organization." Magnolia officinalis Capital's Nuggets logic compared to the investment tactics of Magnolia officinalis, people found some sort of a kind of KKR-like Mark, namely: big business. KKR, the originator of the global equity investment community, is the dominant leveraged buy-out that has been on Wall Street before the global financial crisis of 2008. Early in the 1987, KKR founder Kravis and Roberts made a sensible decision: big business. They are targeting 5 billion ~100 billion dollars in the acquisition business, because such a big business is rarely done.　　And they have previously had this experience: 6.2 billion dollars to acquire BEATRICE,44 billion dollars to acquire Safeway stores, and 2.1 billion dollars to acquire Owens-illinois, and so on. "Who would make a deal of tens of billions of dollars," Rettel, a general partner in KKR, recalls, according to the book "The Barbarians at the door"? No one. Competitors will only be companies. And the enterprise is not at that price level and PE to compete. "Obviously, Fang is also on the road." After the establishment of the 2.5 billion dollar Magnolia officinalis Capital in 2007, Fang has been wary of looking for investment opportunities. According to public reports, Hopu invested about 200 million dollars in early May 2008, buying a convertible bond from a mining company in Mongolia.　　Since then, he has also planned to buy shares in the Sinoma group's unlisted cement business, but finally due to valuation problems and give up. No doubt, after costing HK $5.54 billion for a stake in the bank of China, no one expected the Hopu capital to launch a 7.3 billion dollar deal as lead.　　The simple reason is that Hopu has only 2.5 billion dollars of pledged capital to complete such a huge deal and must borrow money, for example, to seek financial support such as bridging loans. In fact, the Nuggets logic of Hopu is very simple, that is, KKR's "big business". From the experience of Kravis and Roberts, doing business is not just about reducing competition, but big business takes much less time than small businesses. And no matter how big the deal is, the percentage of the cost is unchanged.　　As a result, anyone can see that a 10 billion-dollar business must earn much more than 100 million dollars.　　Who's Fang? Obviously, so simple nuggets logic, who want to imitate, who are eager to complete a big business.　　But the problem is that at present the PE helm who can complete more than 10 billion yuan equity investment in China, only Fang. Born in the early 1950, Fang, a military family, was recognized as "China's first generation of local investment bankers". At the age of 16, he cut the queue in the rural areas of Inner Mongolia as educated.　　A few years later, he was given the opportunity to join the army and was admitted to Zhongshan University at the end of the 1970 century. In the 1980, he worked in the Foreign Trade department and participated in the reform of foreign trade system, including the plan design and early preparation of the first futures exchange of China, Zhengzhou Agricultural futures exchange. During his tenure as deputy director of the China Academy of Management Sciences in 1992, he presided over the planning of China's first real estate securitization product, Sanya real estate investment voucher, and drafted a "Property investment voucher management method" for Hainan Province People's bank.　　After that, he went abroad to study the operation of investment banking and began his career as an investment banker. Back, he has been the top executive of CCB, Bank of China and ICBC's investment bank, and has been involved in the formation of the First Sino-Foreign Joint Investment Bank, CICC, as vice president.　　Since 1997, CICC has completed the IPO underwriting in Hong Kong of China Mobile, Unicom, PetroChina, Sinopec and other large state-owned companies. Mr Fang was transferred to the chief executive of BOC International in 2000 to help Mr Li acquire the predecessor of Hong Kong Telecom, the PCCW. It is understood that Mr Li's huge acquisition of funds was led by Mr Fang to help him melt from the Bank of China. After that, Mr Fang served as the chief executive officer of the Industrial and commercial East Asia.　　He set up his own Gaohua in 2004 as chairman of Goldman Sachs, a joint venture broker in the mainland. Mr Fang was founded in 2007 with He Chao, China's former KPMG China and Hong Kong chairman, and Lionheart, a former senior banker at Goldman Sachs. Despite his decision to leave Goldman Sachs, Fang continued to maintain a partnership with Goldman Sachs and remain in the position of Gaohua chairman of Goldman Sachs.　　Of the 2.5 billion-dollar fund, the biggest investor is Temasek, Singapore ($ 1 billion trillion), with Goldman's investment. Now, with the purchase of CCB shares in the history of Chinese equity investment in the single largest transaction, people have speculated: Fang's next target will be who? Insiders said that, based on Fang's strong appetite and background, perhaps the next time to see his figure, will be in the central enterprises reorganization of the waves.