hollywood billionaire

Chapter 30 Family Office

In the impression of ordinary people, what is a family office?
A private club that meets all the unreasonable demands of billionaires?

A custodian for real estate, sports cars, yachts and private jets?
Or the source of income for trust fund babes for the rest of their lives?
"These are misconceptions people have about family offices, Mr. Han."

Corey McIntosh, who has served Stephen Schwarzman for many years, understands the importance and urgency of Han Yi's establishment of a private asset management company, or a family office.

At this time, he was standing in his private office at No. 864 Stella Della Road, softly admonishing Han Yi.

"Maybe you don't think it is necessary now, but the family office...it is like the Medici family's banks all over Italy, it is your reliance and cover to complete all your plans in this world."

"But Schwarzman doesn't have a family office, does he?" Han Yi asked with great interest.He was not refuting Corey's point of view, but simply curious about the maverick of this Wall Street legend.

"That's because he doesn't need to separate an institution. Mr. Han, Mr. Schwarzman owns more than 20% of Blackstone's shares, and has invested in almost all of Blackstone's funds in his own name... He doesn't need a family office, Because the Blackstone Group is his family office, this is what Mr. Schwarzman himself said." Corey McIntosh answered patiently.

"Whether it is the $1.5 million donated to Oxford University, the largest donation to the university since the Renaissance, or the Schwarzman plan that has spent more than $5 million over the years to send scholars from all over the world to Tsinghua University, it is all done by the Blackstone Group. Mr. Schwarzman led the way."

The name family office has been extremely confusing since its birth, making people mistakenly think it is a concierge company that handles internal affairs for ultra-high-net-worth families.But in fact, its more accurate description and name should be an asset management company with a single source of funds.

"Your iced tea, Mr. Han."

In addition to the discussion, Corey McIntosh did not forget to offer delicious Arizona drinks to his employers who had just returned to work after returning from New York.

It stands to reason that at about five o'clock in the afternoon, refreshing beverages such as coffee and tea should be stopped, but after this period of running-in, Corey McIntosh has already felt that Han Yi, a billionaire, the ordinary people The imperceptible uniqueness has been accurately grasped.

Does not drink alcohol, does not smoke, and is not at all sensitive to caffeine, and even has adverse effects.

What do you mean?
If you drink a cup of coffee or strong tea at night, Han Yi will sleep faster and rest better.

It's weird, but it's not so hard to accept when you think about Jobs soaking his feet in the toilet.

After Han Yi took his first sip, Corey continued the topic just now.

"Employing professionals to provide asset management and investment advisory services for the rich, so as to help families better pass wealth to the next generation and achieve intergenerational growth, is the core business of the family office. As for the management of luxury real estate and other high-end Concierge services for consumer goods, hiring a property manager like me...is just a small part of that side business.”

"Each family has a different name for its exclusive family office. You can use simple and rude names like Soros and Raffles. You can also use the name of the founder of Wal-Mart. Like Sam Walton and Bud Walton, put the world's largest family office with $2245 billion in assets under the cloak of Walton Enterprises."

"Of course, the most common approach is to follow the example of Bill Gates and set up a cascading investment company, or learn from Dubai Holdings, which is run by the Dubai royal family, and dilute the attributes of a single-family office."

Corey McIntosh, who has been immersed in the old money circles of the Upper East Side for a long time, even though his own income does not meet the entry threshold, his vision and knowledge have far surpassed those who climbed through career promotion. Or ordinary wealthy people who run small businesses and gradually accumulate wealth.

"The total assets managed by these family offices range from hundreds of millions of dollars to hundreds of billions of dollars. The above-mentioned Walton Enterprises Co., Ltd., Cascade Investment Co., Ltd., and the rapidly rising Jeff Bay Soth's Bezos expeditions are all giants with assets larger than most capital groups on Wall Street."

"The most important thing is that these funds belong to the same family, and there is no need to worry about the repayment and renewal of its operating funds like ordinary asset management companies. The strong purpose, discipline and execution of a single capital, All of these make the family office a force to be reckoned with in the capital market.”

"This is the business segment you expanded for Han Limited, right?" Han Yi tapped the registration memorandum submitted by Kerui with a pen, "You are planning according to the structure of a family office."

"Yes, in my basic concept, your upcoming family office should consist of five main departments, asset management department, concierge service department, administrative affairs department, accounting department and legal department."

"You can sit down and talk, Corey." Han Yi pointed to the black Fendi leather sofa leaning against the opposite wall, and smiled.Paul Macklin's original office display was a bit cold and impersonal. Han Yi put some furniture and a small refrigerator in, adding a bit of homely and human touch.

Of course, the convenience of getting Coke at any time is the main reason.

"Thank you, Mr. Han."

Corey McIntosh sat down on the sofa and carefully smoothed out the wrinkles in the suit caused by the movement.

"The concierge department employs employees like me who provide private life services for you and future family members, whether it is the current No. 864 Stella Della Road, or the yachts and planes that may be purchased in the future, which belong to personal life and Assets used for recreational purposes are maintained and managed by the concierge service.”

"And the real asset management department will be responsible for managing the various investments you have completed, and provide assistance in bank relations, institutional relations, corporate relations and investment strategies. The administrative affairs department is well understood and is mainly responsible for the background management of the family office , Trivial matters such as the review of personnel appointments and the formulation of salary standards."

"From the perspective of long-termism, the asset management department may be the core business department of Han Limited in the future, but at present, all the funds that can be deployed in your hands have already gone. The degree of diversification of investment projects is not yet available. It got to the point where a dedicated department was needed.”

"Understood, it's not too late to fill in personnel later... There are more important positions that need to be recruited first."

Han Yi very much agrees with Corey McIntosh's point of view. He predicts that at least until he successfully acquires UTA's shares and receives the next reward, he needs to recruit an experienced head of the asset department, who will be in charge of the entire The establishment and improvement of the department.

At present, Han Yi's first plan to fill in should be personnel from the accounting department and the legal department.

More specifically, business managers and lawyers.

Even without Corey McIntosh's offer, finding work as a business manager and lawyer was at the top of Han Yi's to-do list.

After all, whether you are an artist, an entrepreneur, or a rich man like Han Yi who is planning to set up a family office, in any country in the world, the most important things are two things, balance of payments and compliance.

Contrary to most people's expectations, the core of the accounting department is by no means the accountants who are responsible for making books and the cashiers who receive cash.In the world of money, especially the money world of Hollywood, the business manager is the crucial number one player.

The commercial manager is not only responsible for managing each client's income and expenditure, but also needs to provide professional advice on income structure adjustment and expenditure limit, so as to ensure that the client's account always has sufficient and healthy cash flow.

If we go one step further, an excellent business manager also needs to have deep connections and keen insights into development opportunities and investment markets, so as to help clients achieve effective and sustainable growth of assets.

The most high-profile example in recent years is George Clooney and his business manager and partner, Rand Gerber, husband of original supermodel Cindy Crawford.Under the latter's guidance, George Clooney and Gerber co-founded a tequila brand called Casamigos in 2013, which was acquired by liquor giant Diageo for $10 billion just a few years later. .

Even during the period of "Ocean's Eleven" with the highest commercial value of George Clooney, his salary was only 2000 million US dollars.In other words, George Clooney, who has filmed 48 films since his debut, the combined income from his main business is not as good as this time's shrewd business investment.

Another example is that David Borno, one of the most powerful business managers in Hollywood, not only helped Justin Bieber and Ariana Grande’s manager Scooter Brown start Ithaca Holdings, In just six years, the valuation has gone from one to two million to hundreds of millions of dollars, while simultaneously providing financial advisory services to Drake, Pharrell Williams and Will.i.am.

Compared with those hip-hop singers who get a check one second and squander it all the next, Borno's clients' financial status can be said to be quite healthy.

Both cases are good examples of the importance of world-class business managers like Gerber and Borno.They are able to help any type of client make the right business decisions and leave a mark on their wealth career.

The business manager of the family office sketched in Han Yi's mind should be a conservative talent who is much older than himself and prudent.He does not need other people to guide him on investment direction and industrial opportunities, which is his greatest advantage with seven years of vision ahead.

What Han Yi really needed urgently was a person who could immediately step on the brakes when he rode his horse, avoiding financial risks and financial crises.

After all, no matter how generous the rewards are, a failed investment or a radical adventure may bring his wealth to zero in an instant.

Playing safe cards is not Han Yi's strong point, nor is it his mission.Therefore, he urgently needs a professional to be the gatekeeper of his investment portfolio.

This person not only has to say "no" for him, but also says "no" to him.

Han Yi has always believed that what a truly successful entrepreneur should hire are those who complement his personality rather than subordinates who are similar to him.A group of people with similar personalities may work together to make many correct decisions and advance work quickly with extremely high efficiency, but when they make mistakes, they dive into the abyss at a speed that no one can stop.

Because there is essentially no difference between a donkey and a group of donkeys. All they can see is the carrot hanging in front of their eyes.

A team that can operate healthily for a long time should be a well-trained professional football team, and the eleven players in the offensive team on the field can perform their duties.

There are quarterbacks with the court brain who run the offense, there are offensive linebackers who try to shield the quarterback in front of them, there are running backs who surprise the opponent's defense when the quarterback can't get the ball, and of course, there are The opponent's defensive team flashes and moves in the deep zone, creating a front-line killer wide receiver.

There was a quarterback, and an offensive linebacker. With Han Yi already throwing a Hail Mary to the far end, what was needed most now was Jerry Rice, who was struggling to jump in the touchdown zone.

Different leadership styles suit different legal advisors.A wild and flamboyant performance personality needs to be matched with a compliance review master who perfects the provisions word by word.Craftsman-type entrepreneurs who specialize in technology are inseparable from the deep network of contacts in the business, and the old fritters who can solve all difficulties with the relationship alone.

What Han Yi, who is low-key, calm, and introverted, wants most is a negotiator who can bring grand ideas into reality through his three-inch tongue, convince all allies, and repel all opponents.

In the United States, the place where lawyers can play their role is not only in court. Most of the important business negotiations between group companies are led by lawyers as the main negotiating force.

The eloquent talents cultivated in decades can enable lawyers to fight for the best commercial conditions for their employers, and the profound legal knowledge accumulated in seven years of hard study can also help them remain invincible in possible contract disputes.

He can plan cautiously with him, but the person who has the courage to give it a go at critical moments is the ideal family lawyer in his mind.

The most important thing is that this kind of offensive lawyer who takes scoring as the first goal can also form a mutual restraint with the steady business manager who takes not being sacked as the first priority, and at the same time needs to borrow from Han Yi. situation.

As the helm of the company, Han Yi can establish a good personal connection with any employee, but this kind of friendship must not appear among powerful figures in important departments.

The most correct way to control people is to allow two people with completely different personalities to form a competitive and collaborative working relationship in an atmosphere of mutual fear.

This is not a worrisome conjecture, but an inevitable precaution for human nature.

Han Yi didn't know much about the field of business managers, so he entrusted Corey McIntosh to recruit through open channels, and at the same time asked Fernando Gonzalez, the manager of the private bank, for recommendations.

Of course, in his opinion, just going through these two channels is not enough for him to find a real tens of billions level manager.

After the acquisition is completed, it is a more practical recruitment strategy to ask UTA to recommend well-known Hollywood star business managers, or directly ask Douglas Le Pen, a partner of the cooperative enterprise, to introduce several capable people from Wall Street.

For Han Yi now, everything needs time to settle.

As for the lawyers, Han Yi picked out a few names he liked from the sensational industry news in the previous life, and sent an invitation to their law firm to meet.

As with business managers, the choice of lawyers must not be careless.

In the next plan, if nothing else happens, these people will become important pawns for him to display his talents.

Either actively cooperate or passively accept.

After completing these preparatory work, it was already the evening of March 3. The slight vibration from the mobile phone brought Han Yi, who was sitting in the study of the villa, into a state of meditation, back to reality.

"Yiyi, I've arrived at your door, and I've brought you something."

　In the new month, let's rush together!

　　
　
(End of this chapter)