Reborn in 2012, building a new energy empire

Chapter 145 Fundraising Success

A 20% co-investment in a fund of one billion means that Jiang Haoran has to put up at least two hundred million of his own money.

The proportion and absolute amount moved many people present, including He Jichang. This far exceeded the symbolic follow-on investment of ordinary fund managers, demonstrating his great confidence and determination.

Another young investor, who seemed to have a sharp mind, raised his hand and, after receiving permission, asked a pointed question about the implementation of the strategy: "Mr. Jiang, you just elaborated on a very grand long-term industrial investment concept, which is very attractive."

"But the reality is that every fund has a lifespan, typically three to five years. How do you balance this long-term strategy, which may require even longer incubation, with the fund's own pressure for short-term returns and exit requirements upon maturity? After all, ideals don't put food on the table; investors need to see tangible returns."

Jiang Haoran looked at the questioner with a calm gaze, clearly having given the question considerable thought.

"This is an excellent question, and a challenge that professional institutions face every day," he said slowly. "Our solution is to construct a multi-tiered, multi-cycle investment portfolio."

"In this portfolio, some projects will be those that offer relatively certain returns that can be seen within the next 1-3 years. These may come from leading companies in niche industries with clear growth potential, or from value recovery opportunities with clear catalysts."

This part constitutes the "stabilizer" and "cash flow source" of our portfolio, providing support for the liquidity and return foundation of the entire fund.

He shifted his tone, a hint of focus on the future creeping into his voice: "At the same time, the portfolio will also carefully allocate a portion of 'seed' or 'nursery' type projects that target huge long-term potential but require more patient nurturing and support. These projects may not yet have a fully clear technological path, and their business models may need iterative development, but they represent the future direction we firmly believe in."

"For these long-term projects," Jiang Haoran's voice became clearer and more solemn, "we will strictly control the amount of each investment and the overall proportion, using pre-agreed, limited risk margins to seek potential non-linear growth in the future."

Regarding their exit strategies, besides the conventional market-based paths (such as subsequent rounds of financing, mergers and acquisitions, or IPOs), there is another possibility.

He paused briefly to make sure everyone heard the key point that followed: "If a fund is nearing the end of its term, and a particular project is still in a critical growth phase, its value has not yet been fully recognized or realized by the public market."

"In order to ensure the project's continued development and maximize its long-term potential, and also to seek a relatively reasonable exit channel for the fund."

"Provided that the fund agreement is strictly followed and the agreement is reviewed and approved by the entire advisory committee (or LP representatives), it is not ruled out that other long-term holding platforms controlled by me may acquire the shares at a premium based on the price determined by the public valuation report issued by an independent third-party authoritative institution."

He emphasized, "The entire process will be completely transparent, and authoritative third-party auditing and valuation firms will be brought in to supervise and verify it, ensuring that the valuation is reasonable and the procedures are compliant, fundamentally eliminating the transfer of benefits and protecting the rights and interests of all LPs."

"The original intention of this mechanism was to resolve the potential mismatch between long-term projects and fund terms, rather than to seek any improper benefits."

"This part of the investment may also be transferred to my personal company. I will hire a third-party auditing firm to ensure that everyone's interests are not harmed."

"Furthermore, we will always maintain a portion of our assets in liquidity," he returned to the overall framework, "both to address potential temporary redemption needs, and more importantly, to ensure that when extremely undervalued 'golden opportunities' arise in the market, we can quickly replenish our portfolio with new, high-quality assets."

Finally, he concluded: "Therefore, our goal is to create a composite return that significantly exceeds the market average and is relatively stable and sustainable throughout the fund portfolio's lifespan through scientific portfolio management, dynamic position adjustments, in-depth industry research, and post-investment empowerment."

"This requires discipline, patience, and a deep sense of shared values ​​and trust between us and our LPs."

The Q&A session lasted a full forty minutes.

The issues range from macroeconomic trends to industry segment analysis, from specific risk control measures to post-investment management details, from team incentives to potential conflict prevention, and so on.

Jiang Haoran always stood at the forefront, answering every question, whether friendly or sharp, with clear and logical reasoning.

He did not shy away from any potential difficulties and risks, but he also never made promises beyond his capabilities in order to please others. His honesty gradually earned him the respect of the rest of the attendees.

After the meeting, the intended subscription amount was collected and handed over to Chen Jingge.

Although many left midway, those who remained, and those who learned more about the details through in-depth communication, demonstrated stronger capabilities and a more determined intention.

Preliminary statistics show that the total amount of subscription intentions has reached RMB 2.5 billion, far exceeding the target of RMB 1 billion.

After intensive follow-up communication, detailed explanation of the terms and conditions, and alignment of ideas, the funds that ultimately expressed their willingness to accept the fund terms and had a strong intention to subscribe exceeded 1.8 billion yuan.

Among them, investors like He Jichang, who were contacted later, even took the initiative to express their willingness to accept a longer lock-up period than set, in order to show their support for the long-term strategy.

"Keep the scale under 1.5 billion." Jiang Haoran made the decision after carefully reviewing the final list and the amount.

"We proactively declined those funds that were purely seeking short-term profits and lacked alignment with our core principles. While fund size is important, the quality of the LPs (limited partners) and their agreement with our long-term philosophy are even more crucial."

"What we need are companions who can travel the long road together, not passersby who may withdraw their investment at any time due to short-term fluctuations."

Chen Jingge nodded deeply. After this ordeal, he understood Jiang Haoran's persistence even more: "I understand, Haoran."

By filtering out the noise, what remains are the true long-term partners. This kind of funding is more stable and better able to support the execution of our established strategies.

Zhou Mingyu nodded: "Understood. Those selected are partners who can go the distance."

Three days later, the second phase of Jiutian Investment Fund officially closed, with its final size settling at RMB 1.5 billion.

Jiang Haoran personally invested 200 million yuan as agreed.

Three days later, Jiutian Investment's second fund was closed, with a size of 1.5 billion yuan.

Jiang Haoran personally invested 200 million yuan.

On the night the fund closed, after the commotion subsided, Zhou Mingyu opened a bottle of champagne in the office of Jiutian Investment, a senior executive in Lujiazui.

The golden liquid was poured into the glass, and tiny bubbles rose merrily.

"Congratulations, President Jiang." Zhou Mingyu raised his glass, his voice filled with emotion and excitement. "Now, you are truly..."

Now they manage funds in the billions. That's a solid step forward.

Jiang Haoran gently clinked glasses with him, the crisp sound particularly clear in the quiet night sky.

He swirled his glass, watching the tiny bubbles rise, burst, and reappear, as if he were witnessing the ceaseless cycle and surging of the capitalist world.

He recalled that more than half a year ago, he was still staying up late in his university dormitory to watch the stock market, tossing and turning all night for his first pot of gold.

Now, times have changed, and the amount of funds he manages is thousands or even tens of thousands of times larger than before, reaching a new level.

However, he felt little sense of pride. Looking up, the financial forest outlined by the lights outside the window remained deep and unfathomable, and the road ahead, winding and stretching out amidst the interplay of light and shadow, was still very long.

He has climbed one step up the ladder of capital. But the climb never stops; a new cycle has only just begun to quietly turn with the closing of this 1.5 billion fund.