Reborn in 2012, building a new energy empire

Chapter 144 Investment Philosophy

After Jiang Haoran finished explaining his clear and somewhat forward-thinking investment philosophy, the atmosphere below the stage shifted into a subtle silence and anticipation.

The Q&A session has officially begun.

A stylishly dressed young investor who looked to be under thirty was the first to raise his hand. After receiving a signal, he stood up and asked a direct and practical question: "Mr. Jiang, I've heard so much about you. It's all over our circle that Jiutian Investment's first fund achieved an astonishing annualized return of more than ten times in just a few months."

"I would like to ask, for the second phase of the fund, have you set similar, or rather, specific, hard return targets?"

The question drew even closer attention from many in the room, undoubtedly reflecting the core concern of most potential investors.

Jiang Haoran met the questioner's gaze and answered without any beating around the bush, his tone crisp and decisive: "Thank you for your attention. The first fund did indeed achieve good results in certain battles within certain time windows, which proves our team's ability to identify opportunities and execute strategies."

He then changed the subject, his voice steady and powerful, "But I must frankly tell you all that past performance does not guarantee future results."

The target size of the second phase fund is in the billions. At such a scale, to completely replicate the extremely high returns of the first phase is, from both a mathematical probability and capital capacity perspective, highly unrealistic, and could even be considered an irresponsible misleading notion.

He paused briefly, allowing this sobering realization to challenge the expectations of those present, before continuing, "Therefore, I will not, and never will, make any commitments here regarding specific profit figures. Investing is essentially about dealing with uncertainty."

"Correspondingly, to ensure the stable execution of the fund's strategy and prevent short-term capital inflows and outflows from eroding long-term positioning, we plan to set a high performance fee threshold and establish a clear lock-up period after the fund's inception. During the lock-up period, if any investor insists on redeeming their investment, we may charge a penalty of no less than 10% of the invested principal."

"10%? Or no less than?"

"How long is the lockdown? Are the conditions so strict?"

A murmur of barely suppressed discussion and uproar immediately erupted in the room. Many investors who had come expecting high returns changed their expressions.

Immediately afterward, another middle-aged investor stood up, his tone clearly displeased and skeptical: "Mr. Jiang, forgive my bluntness! The capital market is volatile, and the brilliant performance of the first fund may just be a flash in the pan, a result of good fortune."

"The second phase hasn't even started yet, and you've already proposed such stringent conditions—high entry barriers, long lock-up periods, and huge penalties for breach of contract—while not even providing a basic return expectation. I find this unacceptable!"

He abruptly changed the subject, posing a more pointed question: "I've heard that in the structure of one of the funds, there's subordinated capital provided by you as a 'safety cushion,' prioritizing the protection of other investors' principal. Is that true?"

"If so, will you also invest similar subordinated capital in the second phase to share our risks? If such a mechanism exists, I would be happy to consider investing!"

This question hits the nail on the head and represents the sentiments of a significant portion of cautious investors. All eyes are once again on Jiang Haoran.

Jiang Haoran remained calm and shook his head: "No. All shares of the second phase fund, including the portion I personally subscribed to, will adopt the same general partner (GP)/limited partner (LP) structure, with equal shares, equal votes, and equal entry and exit."

"My funds will not act as a subordinated safety net; they will bear the exact same risks and pursue the exact same returns as your funds. In this fund, we are truly 'in the same boat.'"

"What? There's not even a safety mat?"

"With such stringent conditions, you're still offering to share the risks? This—"

"Young man, have you become too arrogant after making some money in the first round?"

These words immediately escalated the commotion into a cacophony of voices. Disappointment, dissatisfaction, and doubt rose and fell.

"These terms are non-negotiable!"

"That's incredibly arrogant!"

"Let's go, there's nothing else to see."

One by one, people stood up angrily, the chairs scraping against the floor making a harsh sound, mixed with low complaints and sarcasm, and left the venue without looking back.

The front row, which had been packed, suddenly had many empty seats. The atmosphere in the venue became chaotic and tense.

Sitting to the side, Chen Jingge watched the potential investors leave one after another, his expression darkening, his fingers tightening slightly under the table.

Zhou Mingyu's face was tense, and he almost broke the pen in his hand. He looked at Jiang Haoran, who was still standing tall and calm on the stage, and then glanced at the backs of the departing people. His heart was in turmoil.

Just as the noise and commotion were about to engulf the venue, a calm and peaceful voice, though not loud, strangely pierced through the clamor, gradually quieting the surroundings.

The person who spoke was a middle-aged man sitting in the middle or back row who had not spoken at all.

He was impeccably dressed but not ostentatious, with a gentle face, yet his eyes revealed years of experience and insight. He was none other than Mr. He Jichang, a well-known real estate entrepreneur in the Jiangsu and Zhejiang region.

He came to observe after being introduced by Mr. Wang, who had previously participated in the soybean meal market and profited handsomely.

"President Jiang," He Jichang's voice wasn't loud, but it carried a calming power, "your insistence on setting such a long lock-up period, even at the cost of hefty penalties for breach of contract, must stem from an extraordinary level of in-depth research and unwavering conviction in the investment direction you favor. You're planning a protracted battle that requires time and patience," rather than short-term speculation.

He leaned forward slightly, his gaze calm yet sharp as he looked at Jiang Haoran: "Then, I have a question: What is the specific exit mechanism for investors after the lock-up period ends?"

"Is it necessary to wait for fund liquidation and distribution, or are there flexible redemption arrangements during the period? Or, is it possible to distribute profits after certain conditions are met, thereby enabling a phased exit of some funds?"

This question returns to the core of business logic and also reflects the sentiments of many established investors who are still observing the market.

The venue fell completely silent, and everyone looked at Jiang Haoran.

Jiang Haoran looked at He Jichang, his eyes showing a newfound respect for someone truly knowledgeable, and his tone softened slightly: "Mr. He has hit the nail on the head. We don't intend to completely lock up the funds. Under the conditions stipulated in the fund contract, especially when the investment projects generate substantial cash flow or achieve partial exit, we will give priority to arranging regular profit distributions for all investors."

"This will provide liquidity returns to everyone after the lock-up period ends. Of course, the specific dividend policy, frequency, and percentage will be clarified in the final agreement."

At this point, another investor, Mr. Li, who had attended the first banquet and knew Jiang Haoran somewhat, asked a more direct question concerning the foundation of trust: "Mr. Jiang, for the second fund, how much are you personally prepared to co-invest? What percentage?"

This is a crucial question, reflecting whether managers are willing to truly align their interests with those of investors.

Without any hesitation, Jiang Haoran answered clearly: "My personal investment and that of my core team in the second phase of the fund will be no less than 20% of the total fund size."

"Every penny of mine will be placed in the same pool as the funds of all my LPs, subject to the same fluctuations, and pursuing the same goals."

"My interests will always be firmly tied to yours and the overall performance of the fund. This is my most basic sincerity and the foundation of our mutual trust."