Chapter 330 The Gambling King Takes the Hook

Li Xiaofan bowed his hands and said: "Director Lin, you are so grateful! This may be a blessing from my good luck and cultivation in my previous life..."

Lin Guotai smiled and said: "Director Li, you are welcome. I think your success is no accident. From your early investment in Yahoo stocks, you were the first to take the lead in setting up the Yahoo Singapore station in Asia, and then pioneered the first in Singapore and Malaysia." Judging from these first-of-its-kind actions such as online bookstores, I really admire you! And judging from the promotion situation of our Star Cruises cooperation with your Yahoo Singapore station since the end of last year, the effect is very good. Come and say thank you!”

"Director Lin, you are welcome. I have to thank you for being favored by your Genting Group Star Cruises and giving us advertising business!" Li Xiaofan said politely.

Li Xiaofan thought to himself: This Director Lin in front of him should really not just come to visit to express his gratitude, right?

After a few pleasantries, the elegant Lin Guotai turned the topic to the real purpose of today:

"Director Li, I remember that when you came to my office last time, you mentioned that you had the idea of ​​setting up a venture capital fund in Singapore that mainly invests in high-tech industries, right?"

Hearing this, Li Xiaofan smiled inwardly. When he visited Lin Guotai for the first time at the end of last year, Li Xiaofan brought up this topic intentionally or unintentionally. Lin Guotai seemed very indifferent at the time and had no interest at all.

After all, Li Xiaofan didn't have any promising investment projects to convince Lin Guotai at the time.

Although Lin Guotai graduated from the University of London, England, he majored in civil engineering construction. Choosing this major has a lot to do with the background of his father Lin Wutong. Lin Wutong was born in Anxi, Fujian Province, which is rich in Tieguanyin tea. When the Japanese invaded at the age of 19, he crossed the ocean and came to Kuala Lumpur, Malaysia to seek a living. After working for two years, Lin Wutong started a construction contracting business.

After Lin Wutong's construction business grew, he suddenly had a world-shaking idea one night on the Cameron Highlands in Malaysia: he wanted to build a world-famous paradise on the high mountains of Malaysia.

In 1963, he got the support of Tunku Abdul Rahman, the first Prime Minister at the time, and launched the Genting Highlands development plan.

On March 31, 1969, after six years of hard work, the first hotel on Genting Highlands was officially laid. On this historic day, the founding father of Malaysia, Tunku Tunku, brought a huge surprise to Lin Wutong: the Malaysian government will issue him the only casino license in Malaysia!

From then on, Genting Group cheated like crazy! Become one of the richest and most influential top consortiums in Southeast Asia.

When the world evaluates Lin Wutong, the Southeast Asian gambling king who came from a hard-working career, they believe that his influence far exceeds that of Macau's Stanley Ho and others. It is so admirable that a foreign Chinese with no background can achieve such a great career in Malaysia!

In accordance with the wishes of his father Lin Wutong, Lin Guotai went to the University of London to major in civil engineering after graduating from high school. After graduating in 1975 and returning to the Group, he has been helping his father.

At that time, in addition to the gaming industry, Genting Group's largest businesses were hotels, theme parks and some construction industries, so Lin Guotai did not have much exposure to emerging industries such as the Internet.

When Li Xiaofan talked about these topics last year, Lin Guotai didn't feel anything.

However, Yahoo was successfully listed on Nasdaq a few days ago. Lin Guotai saw the interview with Li Xiaofan. After listening to the introduction by the host of the American NBC TV station, Li Xiaofan's successful investment story shocked Lin Guotai!

An investment of US$4.6 million magically turned into an astonishing wealth of more than US$200 million in one year. It’s incredible!

In August 1993, with the full support of his father Lin Wutong, Lin Guotai bought two super luxury cruise ships for US$100 million. At present, the gross profit margin of the Star Cruises company they invested in does not exceed 20%.

On the opposite side, this young man from China made an astonishing return of more than 40 times in one year by investing in Internet projects in Silicon Valley!

Lin Guotai felt that compared with others, he, a rich second generation who was born and raised with a golden rice bowl, was really ashamed!

Therefore, after Lin Guotai reflected on it, he felt that he was too indifferent to Li Xiaofan when he came to visit him last time, and he felt very apologetic.

So today I made a special trip to visit Li Xiaofan to learn from him.

After hearing this, Li Xiaofan smiled:

"Yes, Director Lin, I do have the idea of ​​setting up a venture capital fund that mainly invests in high-tech industries. To be honest, in addition to the Yahoo project, I have successively inspected and invested in several projects in Silicon Valley. High-tech projects, such as graphics chips, CMOS image sensor chips, hard disk heads, magnetic sensor chips and other hard technology projects, feel very promising! The future explosive power will not be lower than that of Yahoo..."

"Oh, Director Li, could you please introduce the venture capital fund you want to launch in more detail?" Lin Guotai took a sip of tea, leaned over and asked Li Xiaofan seriously.

Genting Group has accumulated a lot of wealth in recent years, with a large amount of cash lying in its bank accounts, and is in need of reliable investment direction.

Li Xiaofan explained with a smile: "The first Yifan Venture Capital Fund I plan to launch is currently mainly investing in unlisted emerging high-tech companies in the Silicon Valley of the Bay Area. The planned scale of the Yifan Venture Capital Fund is US$100 million. , the investment cycle is about 3 to 5 years, and the predicted return on investment is more than 50%. Of course, this is just a prediction, and there is a possibility of investment failure. But if you encounter a project like Yahoo, the return rate will be astonishing dozens of times!”

Li Xiaofan continued: "Director Li, are you interested in my Yifan Venture Capital Fund?"

"Yes, I'm very interested. Can you tell me more about how we, Genting Company, can participate in investing in your Yifan Venture Capital Fund if we are interested?"

"Okay, Director Lin, let me give you a brief introduction. General private equity venture capital funds are usually initiated by investment management companies like our Yifan Investment Company, called GP general partners. Our investment management company also contributes a small amount of Funds. Most of the remaining funds are contributed by institutions and investors like you, called LP limited partners. Like shareholders of a joint stock company, the main job of the GP general partner is to manage the fund and enjoy management fees. and a small amount of fund income ca

y…”

"ca

"Y" is the core incentive mechanism of private venture capital funds, reflecting the internal relationship between the fund manager GP and the investor LP.

Generally, the most common model in the industry is "2% + 20%", that is, during the investment period of a fund, the LP pays the GP an annual management fee of 2%; after the expiration of the duration, the fund's return reaches the pre-agreed bottom line. , after the GP returns the principal to the LP, it can also share 20% of the profit.

20% of this profit is ca

y!

When you don’t have enough capital to invest in too many projects, launching a private equity fund is the best way to increase leverage by “borrowing chicken and laying eggs”.

This routine has been used by SoftBank Group's Lao Suntou to great perfection, and now Li Xiaofan is about to take action too!