I'm back in 1990

Chapter 1116: Setting up a Family Office

The next day, Huang Xiaochuan and Cao Charlie had a long talk in an office on the 78th floor of the Global Trade Building.

Not far from the two, several documents were spread out on a huge rosewood desk. The title of the top document was: Huang Family Office Preparation Plan.

Huang Xiaochuan is over forty years old. If fate is a game of chess, then he has been playing this game for more than twenty years.

From his stamp speculation venture in 1990 to today, his business empire has grown so large that it needs to be defined as a "conglomerate" rather than a corporation.

Changhong Capital manages hundreds of billions of dollars in assets and wields considerable influence in the global private equity hedge fund and venture capital fields. Pacific Century Bank, headquartered in New York with branches throughout the Americas, Southeast Asia, and Shanghai, Guangzhou, and Shenzhen, also boasts assets exceeding two hundred billion dollars. Sun Microsystems, a hardware and software giant and a world-class technology company, is effectively controlled by them through complex cross-shareholdings.

There's also the Hong Kong Grand Line Group, a conglomerate headquartered in Hong Kong with businesses spanning Northeast and Southeast Asia. Its assets range from real estate to aviation, finance to hotels, and refining to ocean shipping, with assets also amounting to hundreds of billions of US dollars.

In China, Guangda Real Estate consistently ranks among the top ten in the industry, while Times Commerce Group is China's largest retail giant. In addition, it has invested heavily in the manufacturing and technology sectors.

In twenty-four years, he completed a journey that others would take more than a hundred years to complete.

In his previous life, he had never had such an experience, so naturally he had no experience in managing such a huge amount of assets. Therefore, in this life, he is constantly learning how to manage these assets. As the assets under his control become larger and larger, he discovers a problem: the current power structure centered on his personal interests is unsustainable. As the saying goes, wealth does not last beyond three generations.

He could control it while he was alive, but what if he were gone? Would his children and descendants be able to manage the vast assets he left behind? What if an incompetent descendant were to bring about the family's annihilation?

That's why he came up with the idea of ​​establishing a family office to decentralize power, and there are existing cases to learn from.

The Rockefeller family in the United States established the world's first family office in 1882. Starting with a small team of six, they have continued to manage the wealth and legacy of the entire Rockefeller family to this day, allowing the Rockefeller family's glory to continue for six generations.

Therefore, based on this, what he wants to do is a larger, more complex, and more decentralized architecture.

He wanted this vast business empire to learn to operate on its own while he was still alive, rather than falling apart in disputes over inheritance and internal strife after his death.

In his plan, all the industries in mainland China will not be included in the family office's management for the time being, but will still be controlled and managed according to the original method, because he has other plans for those industries in the future. Kangci Medical Group and Kerui Pharmaceutical Group under Yu Xiang's name will also not be included in the family office's management system, because Yu Xiang wants to leave them to her daughter Huang Ruiying. Huang Xiaochuan did not want to have any more disputes with Yu Xiang on this matter, so he simply let her have her wish.

In other words, all assets in Hong Kong and overseas will be managed by the soon-to-be-established family office, which is also a sophisticated risk control method.

Huang Xiaochuan envisions that after his son Huang Zeji and daughter Huang Ruiying come of age, he will gradually arrange for them to enter the family office.

However, before that, he will hire a professional management team to run the family office.

According to the "Huang Family Office Preparation Plan", the chief legal counsel was named Gao Wenbin, the managing partner of Linklaters, Greater China region.

The Director of Family Management and Succession Planning is Phila Penn, a former consultant to the Rockefeller Family Office.

The tax and compliance director is Chan Chi-chung, a former senior official of the Hong Kong Inland Revenue Department.

Charlie Cho served as the chief consultant for the Huang family office, assisting Huang Xiaochuan in managing the family office in the early stages.

Based on the Rockefeller family office's salary structure, Huang Xiaochuan devised a model of base salary plus a share of family profits. In this way, the interests of these managers in the family office will be tied to the long-term interests of the Huang family.

Charlie Cho, as his handpicked chief consultant for the family office, is reporting to him.

"This Ms. Phila Pan was a consultant at the Rockefeller family office for twelve years and has a deep understanding of family management structures. She has now left Rockefeller and is now a consultant at a family office in Singapore. I contacted her through a headhunting firm and we met. She is very interested in your proposal."

Huang Xiaochuan nodded and asked, "So what's her thought?"

Charlie Cho sat up straight: "Her core idea is that a successful family office cannot only manage wealth; family management is equally important. Therefore, she proposed a three-pronged structure: the family committee, the family office, and the family foundation. These three entities check and balance each other and support each other."

Huang Xiaochuan nodded inwardly, this viewpoint suited his taste perfectly: "This is a good idea. In the future, the family committee will be in charge of decision-making, the office will be responsible for execution, and the foundation will be in charge of culture and charity. The responsibilities and powers are clearly defined and there are checks and balances between them. Very good!"

In the future, who will enter the family office, who will participate in decision-making, how family assets will be distributed, how the family business will be governed, and the inheritance of family values ​​will all be explained in writing.

Charlie Cho echoed, "That's exactly what she meant. She also emphasized the importance of family rules. In her words, a family office without family rules is like a country without laws; it's bound to run into problems sooner or later."

Huang Xiaochuan instructed, "Arrange a time; I'd like to meet this Ms. Pan."

"I've already invited her, and you can see her anytime. Why don't you have her come now?"

Huang Xiaochuan thought for a moment: "This afternoon!"

"Okay, I'll arrange for her to see you at 2 PM."

"Okay!" Huang Xiaochuan nodded in agreement, then asked, "What about the others? What's the situation with Gao Wenbin and Chen Zhicong?"

"The deal with Gao Wenbin has been reached. Nianlida also wanted to keep him, but he's made up his mind and is very willing to join your family office. There's no problem with Chen Zhicong either. He worked in the tax department for over ten years and then served as vice president of a private bank for eight years. He has a wealth of experience."

"Then let them both come this afternoon too!"

"OK!"

Zhang Sui will serve concurrently as Chief Investment Officer. This is the first important member of his family office that he has decided on. He has already communicated with Zhang Sui in advance, and with Zhang Sui's ability and his trust in her, she is more than capable of this position.

High-energy chapter 1116: Setting up a family office updated! Read now: