Chapter 367: Fourth Phase of Fund Issuance

Words : 1913 Updated : Oct 9th, 2025

"How have you been lately?” At night, Lu Liang video-called Su Wanyu and learned that her due date was in two weeks, but it was unknown whether the baby would come early or late. He smiled and said, “I’ll try my best to get there before the 20th, so the baby isn’t born while her mom is still thinking about dad.” This month, Lu Liang had been a bit busy. As soon as it was past midnight, it would be the 9th, and tomorrow he had to return to Modu to prepare for the new phase of the private equity fund. On the 15th, he would attend the first New Energy Vehicles Conference on Hai Island for three days and, as a board member, he couldn’t leave early. Before the 20th, he should be able to squeeze in some time to make a quick trip to Edinburgh, though he estimated he wouldn’t be able to stay for very long. On the 28th, the Federal Reserve was set to announce an interest rate hike, and they needed to prepare a few days in advance to plan and strategize carefully. "Hmph, stop being so smug, who would think about you?” Su Wanyu said with playful arrogance. "Feeling pretty good?” Lu Liang noticed Su Wanyu was in a good mood. "Because of sister, ah, she is so amazing~” Su Wanyu chattered away, explaining how life had changed drastically since Lu Ya came over. She was a little socially anxious and didn’t like interacting with others. Zheng Xiaoxuan was slightly better, but not by much. Before Lu Ya arrived, the two of them were like two autistic children, not even knowing who lived in the neighboring apartment. As soon as Lu Ya arrived, even without speaking the language, she quickly became familiar with the neighbors and the shop owners in the area, organizing everything tidily. Moreover, Lu Ya was also a mother of two and had lots of experience, knowing about many pregnancy precautions that Su Wanyu was unaware of. Even though she was in Edinburgh, the East and West have different races and their approaches to pregnancy also varied greatly. Su Wanyu was just there to study abroad, not having grown up there; the practices from back home suited her constitution better. "Sister’s husband is a bit dense. Lu Ya manages their grain and oil shop at home; her social skills are top-notch.” The two chatted for a long time, mostly with Su Wanyu speaking and Lu Liang listening, until the night grew deep. "It must be 2 a.m. back home, right? You should rest early too, don’t stay up late~” "Mhm, bye.” seaʀᴄh thё novel(F~)ire.net website on Google to access chapters of novels early and in the highest quality. The next day at noon, Lu Liang returned to Modu from Beijing. As soon as the plane landed, Sun Yutao released news to the public about the establishment of the new phase of the private equity fund, along with its size and a brand-new fee structure. "Only 1.5 billion US Dollars?” "Mr. Lu, how come it feels like you’re regressing?” "Half a year managing a public fund, have you been assimilated by Big A? Lost your nerve?” "Didn’t I say? 3 billion US Dollars, with only 1.5 billion from within the country, the remaining 1.5 billion to bring in foreign capital.” Due to the help of the public fund attracting attention, news of the new phase of the private equity fund circulated only in small circles. Aside from the size of assets in this phase and the introduction of foreign capital, the tiered fee model also prompted some criticisms. 3+20N, based on the domestic scale of 1.5 billion US Dollars, if divided into 25 parts, each subscription requires 60 million US Dollars. ‘3’ represents an additional payment of 1.8 million US Dollars, a management fee that must be paid regardless of profit or loss. The industry standard is typically 2+20, but Lu Liang had already raised it to 3+25 in the last phase of the private fund, and nobody objected. The key is ’20N’, based on 30% profit, for every 30% increase in profit rate, the management fee proportionately increases by 5%. This means at 60% profit rate, the fee is 25%, at 90% it’s 30%, at 120% it’s 35%, capping at 40%. "So, if the profits reach 150%, assuming each part earns 9 million, Lu Liang is going to take 3.6 million?” "Isn’t this fee model a bit outrageous?” "When you ask this question, you’ve actually already accepted it in your heart; you’re just looking to negotiate.” The new fee model, like a small stone cast into a calm lake, created ripples but not a big splash. To hit the 40% cap, there must be at least 150% profit, which leaves 5.4 million after deducting 3.6 million, a 90% net gain. With Lu Liang’s current reputation, initiating a private fund worth 10 billion or even 20 billion US Dollars would be a breeze. Yet he chose to launch one for 3 billion, with half of that set aside for foreign capital, leaving only 1.5 billion US Dollars for domestic investors. And the settlement cycle, unlike the previous phase’s three years, was only one year, making it clear he was aiming for speculation. Before long, Sun Yutao’s phone was almost blown up by calls. Within a year, turning 3 billion US Dollars into 7.5 billion, achieving a 150% profit rate, entailed very high risks. But the first phase settled with a 471% total return, the second phase with 91%, and the current cumulative return of the third phase is 94%. Their confidence in Lu Liang was unconditional and blindfolded; even if Lu Liang himself claimed he was not up to par, they would simply think he was being modest. Approaching noon, Lu Liang arrived at the private equity firm on the 22nd floor. "Mr. Lu, please take a look.” Sun Yutao hurried over, inviting Lu Liang into the office and providing a list of over fifty individuals. The fourth fund was also divided into fifty subscriptions, half domestic and half international, each valued at 60 million US dollars. For the international subscription shares, Lu Liang was personally responsible; for the domestic ones, he was in charge of tallying. Now, from a list of fifty-four people, Lu Liang needed to pick out twenty-five or fewer for the distribution of shares. "Lei Jun, Daqiangzi, Little Ma, Old Ma, Zhang Yiming, Zhou Hongwei… all acquaintances.” Lu Liang looked troubled and was entangled; with more monks than porridge in this phase, he didn’t know who to choose. After much consideration, he decided to use the process of elimination, excluding those like Zhu Hu, Guo Changguang, and representatives from the three big families of Xiangjiang who participated in the second and third phases. Then he prioritized new friends who had never participated in the private equity fund, such as Zhang Yiming, Zhou Hongwei, Wang Chuanfu, and Old Ma. Next, he picked from those who had invested once in the third phase and had a good relationship with him, like Old Zeng of Ningde, Hengtai Xu, and others. "That will do. Send out the invitations, have them come over on the 13th to sign the subscription agreement. The usual rules apply.” Lu Liang got to work, handpicking from the list, and ultimately designated eleven individuals who would take two shares each, totaling twenty-two shares. Aiming for an even distribution of benefits, the remaining three shares, worth 180 million US dollars, he planned to reserve for himself. Even though Tianxing Investment’s account still had 480 million US dollars in liquid assets, he wasn’t inclined to invest too much. Because the fourth phase of private equity investment didn’t include Little Wang, nor State-owned Xiao Xin, let alone Meng Changkun. Yesterday’s conversation with the leadership had enlightened Lu Liang about the higher-ups’ intentions: the new fund’s company, fully owned by him upon establishment. Assuming that, in a year’s time, 3 billion US dollars would turn into 7.5 billion, with 1.8 billion in management fees, all would count as Tianxing Investment’s earnings. With no one else reaping the rewards and the profits being sufficiently substantial, the smaller share for Lu Liang personally didn’t matter. Besides, he also needed to retain some capital for the development of Tianxing Technology and to await the right time to buy into DiDi. Having waited for two days in Modu, it was suddenly the 12th, and Lu Liang arrived at Pu Xin Airport to greet a good friend who had come from afar. Soon, a luxurious minibus carried seven foreigners and their accompanying assistants and secretaries away from the airport. Wilson gazed out the car window, fixated on the tall buildings lining the roads and the intricate network of overpasses. After a while, he expressed his heartfelt admiration, “Modu has really changed a lot over the years.” "Wilson, have you been here before?” Lu Liang’s face bore a smile as he stood in the first-row aisle, like a tour guide facing them. The seven people present were undoubtedly notable figures from Wall Street, heads of investment banks like JPMorgan and Stanley, investment funds like Blackstone and Vanguard—all directors or presidents of their respective investment divisions. "I came once, seven years ago. Back then, Pudong wasn’t as prosperous as it is now.” Wilson was full of emotion, reflecting that the progress witnessed year after year in Modu was unstoppable, and East Country would surely maintain this unstoppable momentum. "In the future, you can always come for a visit whenever you like; you’ll find a whole new world awaits you,” said Lu Liang with a grin. After 11 years in Modu, he had once walked every inch of its land. Over those 11 years, he had watched Modu transform, as if it had been wound up since 2008. To say it was changing day by day was no exaggeration. "It’s definitely worth frequent visits,” Wilson nodded in agreement. Ever since they entered the city, the increase in green license plate vehicles was visible to the naked eye, BYD cars were many, but Teslas were also not uncommon. Even if Lu Liang hadn’t invited him, Wilson, being a strong supporter of Tesla, planned to find time to visit in the next few years. Half an hour later, the group arrived at the Hilton Hotel in Lujiazui to rest briefly for an hour and a half. Lu Liang instructed Xu Jiawei to bring them to the 22nd floor of New International Building to inquire about the distribution of the fund. He had released twenty-five shares externally, totaling 1.5 billion US dollars, for them to choose from. After exchanging glances, they had already decided on the distribution before their arrival. Wilson said, “JPMorgan, Stanley, and BlackRock will take four shares each; Blackstone, Vanguard, and Quantum will take three each, and De Mei will take four.” "Since you have already decided on the distribution, let’s go with your arrangement.” Lu Liang mused, noting from the distribution that JPMorgan, Stanley, and BlackRock belonged to the first tier. Blackstone, Vanguard, and Quantum comprised the second tier, while De Mei probably received four shares considering it was a smaller institution seeking mutual warmth.

Chapter 367: Fourth Phase of Fund Issuance

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