Chapter 635 (1/2)
Simon returned to the Greenwich manor. Janet, who had arrived in advance, met the man in front of the villa door and made a friendly gesture. She took him by the arm and entered the living room together.
The couple sat down on the sofa in the living room. Simon asked about the results of the woman's trip to Boston.
With the rise of cersei capital's Heiyan asset management company, many large financial groups began to pay attention to this business. Before Heiyan, although professional asset management companies had developed for many years, there was no such company with a scale of US $200 billion. Most financial enterprises paid more attention to hedge funds on the basis of traditional business And private equity.
Heiyan asset management company wins completely by scale. When it reaches a certain scale level, the risk is still very low, but the income is high enough, which makes other financial giants unable to calm down.
Wall Street has always been famous for its mystery and power.
In fact, before the 1990s, the strength of Wall Street was far less powerful than that after the new century, and the financial industry of European countries was still able to compete with that of the United States.
The real pattern change began in the 1990s. The continuous economic turbulence and recession in Europe and Asia led to a large amount of capital flowing to the United States, where the economy continued to prosper. The federal authorities also continued to relax the regulation of the financial industry in the 1990s, eventually creating a strong situation for Wall Street in the world after the new century.
Whether it is hedge funds, private equity or asset management industry, Wall Street in the 1990s showed a ten fold level of rapid growth.
The total size of hedge funds has increased from tens of billions of dollars in the 1980s to trillions of dollars after the new century. After the craziness of the 1980s, private equity no longer uses leverage without restraint, but its overall scale continues to increase. The business model tends to be conservative in the asset management industry, and it has developed into trillions of US dollars of super giant from the top tens of billions of US dollars of asset management scale in the 1980s.
Considering the overall development strategy of westero system, among the three subsidiaries of cersei capital, Simon attaches the least importance to cersei fund management company, which is mainly engaged in hedge fund business, and the most importance to Heiyan asset management company, which is in charge of Lawrence Fink.
Black rock asset management company's recent total asset size has exceeded $210 billion, but Simon is not satisfied.
Since the beginning of the year, Janet has been planning a cut-off. Her target is Boston based State Street bank, an old banking giant, which was considering setting up an independent asset management subsidiary similar to black rock.
Later on, if people are interested in the ownership structure of large American enterprises, they will surely find that whether it's apple, Google, Amazon, or Ge, Boeing, ExxonMobil, the top public shareholders can usually find two names: ”BlackRock Inc.” and ”state street.” The former is black rock group and the latter is State Street bank.
Even though the overall asset management scale has not been comparable with that of Heiyan group, the strength of State Street bank, which is usually among the top five public shareholders of large enterprises, can also be seen.
At present, the core business of State Street bank is still concentrated in the field of traditional banking, the asset management business is not operated independently, and the controlled asset scale is only one tenth of the total asset scale of State Street bank, about $60 billion.
Of course, the scale of asset management of 60 billion US dollars has become a big Mac in this era.
Before most financial giants only realized the development prospect of asset management industry, but did not fully see the importance of this industry that may affect the direction of the U.S. economy in the future, Simon and Janet resolutely launched a plan to try to cut off the Hu, hoping to strangle the plan of State Street bank to separate from the asset management department and operate independently in the cradle.
The plan is highly feasible.
The core lies in the gold lettered signboard of cersei capital.
For the old State Street bank, it is very cost-effective to use its asset management department, which is only one tenth of its total business, in exchange for the ticket of cersei capital, and then establish a close cooperative relationship with the whole westrow system.
Therefore, after Janet started contact with State Street bank at the beginning of the year, although the other side did not give a positive response at the first time, it did not close the door of negotiation.
After a period of mutual testing, the formal negotiations finally began in March.
Janet went to Boston to finalize the details of her cooperation.
”The final plan is a complete stock exchange merger, we can save a lot of money,” said Janet, sitting on Simon's lap in the living room of the villa, with one hand around the man's neck and the other hand scratching his chin. ”25% of the equity of black rock asset management company in exchange for the whole asset management department of State Street bank. Among them, 22% of the shares are owned by State Street bank, and the other 3% are owned by several core executives of the asset management team of State Street bank. After this transaction, our shareholding ratio dropped from 41% to 32%. However, State Street bank said that it could grant us the voting right of 22% of its shares for five years. ”Janet said this with a sly wink at Simon.
Simon knows.
With the rapid expansion of black rock asset management, the relationship between the Simons and Lawrence Fink is not as good as it was at first.
The key is still the control of the financial giant.
Lawrence Fink has constructed the business model of black rock asset management company. However, the company's asset scale has expanded to the current level of $210 billion in just a few years. The most fundamental reason is cersei capital. There has never been a shortage of talented bankers on Wall Street. In recent years, cersei capital has been more attractive to investors around the world than even the established Morgan and Goldman Sachs.
For no other reason, the rise of the westero system over the years is a miracle. As capital pursues profits, investors naturally prefer companies that can bring them rich returns.
Lawrence Fink clearly knows this, so in recent years, he has only quietly diluted the shareholding ratio of cersei capital, the parent company, by continuously distributing the equity to new partners. Prior to the deal, cersei capital's stake in black rock asset management company had been reduced from the initial 50% to 41%.
In addition, Lawrence Fink also plans to further the listing operation of black rock asset management company.
For the traditional partnership financial company, the partner's equity is usually not permanent. Once the partner leaves the company, he can only get a compensation, and his shares need to be returned.
In contrast, once a financial company is listed, with the change of the nature of the company, the ownership structure will be completely finalized, and the shares held by partners will become permanent shares. Moreover, special powers such as the one vote veto originally enjoyed by cersei capital's parent company are inappropriate for listed companies.
In a word, when an enterprise becomes a public holding company with scattered shares through listing, the power of shareholders will be weakened and the control power of the board of directors and management will be greatly increased.
Lawrence Fink wants to gradually win the real control of Heiyan asset management company from cersei capital in the form of continuously dispersing equity and promoting the listing of enterprises. In the original time and space, the top Wall Street banker did.
This time, it's no longer possible.
Moreover, as long as the merger between black rock asset management company and State Street bank's asset management department is concluded, Fink's planning in recent years will go back to the origin directly.
Getting 22% of the voting rights of State Street bank, even if it's not permanent, including 32% of cersei capital's total voting rights of 54%, is enough to ensure that the Simons will enjoy absolute control of black rock asset management company in the next five years.
Five years is enough to do too much.
When the scale of a company develops to a certain level, the operation of the enterprise is often like a huge machine, which has considerable independent operation ability and no longer needs continuous real-time control by the operator. As a result, even Lawrence Fink, the founder of the machine, is no longer indispensable.
Moreover, this stage is no longer the beginning of Lawrence Fink's job hopping from Blackstone Group to cersei capital.
At that time, the total scale of assets managed by Heiyan asset management company was only US $3 billion, and Lawrence Fink was able to make a comeback with his own ability even if he went out of the house.
Now, once the merger of the asset management department of State Street bank is completed, coupled with its continuous expansion, it is estimated that by the end of this year, the total scale of assets in charge of Heiyan asset management company will exceed 300 billion US dollars, which is equivalent to 100 times of the scale that cersei capital initially took over Heiyan.
At this time, it's hard for Lawrence Fink to create such a financial empire with assets of hundreds of billions of dollars from scratch, not to mention whether he is willing to give up everything he has now and go out of the house.
Simon had already expressed his attitude when he agreed to share 50% of the shares in black rock asset management company. He attaches great importance to Lawrence Fink, who built the black rock empire in the original time and space, so he does not pursue the controlling interest. However, cersei capital can never take over and is gradually marginalized in this company, which is the bottom line.
Lawrence Fink tried to touch the bottom line. Cersei capital's counterattack was to completely take back the absolute control of black rock asset management company.