Lunch with hillhouse zhang lei: weak water three thousand, a ladle

this article by the New York hedge fund chief investment officer AnJing recommendations and comments on: “people know he’s donation to Yale, but didn’t notice that three years after the donation doubled his money management scale; This is the American hedge fund, but the soul of the company are often in Beijing; The SEC disclosure documents show his preference is, but he seems to be the company’s head is too close, and interest in private equity investment show larger; He has started to local Chinese layout, increased media exposure shows he accelerated the pace of finance, but he is recognized as a low profile. Welcome to the barbarian market!”

today is Sunday, the springtime, the second day is at Yale University in New Haven, Connecticut (Yale University in New Haven, Connecticut) held on commencement day, return to his Alma mater in the many alumni, including the Chinese billionaires, financiers Zhang (Zhang Lei). This year at Yale zhang lei, 41, is a household name. In 2010, he announced to the Yale School of Management (Yale School of Management) giving the significance of the $8888888 in geely, this is the School received the biggest ever alumni donations.

but out of Yale university, Zhang Leize appear obscure. But he is in charge of a $13 billion fund in China – Hillhouse Capital (Hillhouse Capital), the main investment of China’s Internet entrepreneurs and start-ups. The fund’s name comes from a street in new haven, originally from Yale investment fund office is located just across the street. The office in charge of Yale university totalled $20 billion fund, it is in this internship, zhang started his career as a financial.

I cannot help associating zhang with the United States in the 70 s and 70 s, a financier who founded the kohlberg kravis Roberts and Blackstone (Blackstone), and other large listed private holding company, however, zhang lei, I don’t want to compare with them. Zhang lei, founded his own investment company, become the first support China private equity fund Internet entrepreneurs, including the founder and CEO of tencent Ma (Pony Ma). Tencent and Ma (Jack Ma) founded by alibaba, China’s two biggest Internet companies. May equate the zhang and silicon valley’s venture capitalists are more fit.

we agreed at Yale university next to the grocery and deli Nica ‘s Market open on the table outside the meeting, here is Sunday a handful of several outdoor dining place to go. Zhang lei, dark jeans, wearing a dark black edge get a long-sleeved shirt, is not visible in the busy students.

after I had sat down, he said he after the interview will be replaced by evening dress, thanks to attend Yale, head of the investment fund, David Swensen (David Swensen) party, since 1985, David Swensen has been in charge of the station investment funds to Yale university. Since 1999, swensen has been zhang lei’s teacher, was Zhang Leiceng at Yale School of business (Yale School of Management) repair, swensen’s lesson and won the coveted Yale investment office internships.

for zhang can in an interview, I feel happy and surprised – I’ve been asked interview zhang lei, this is the first time he himself in English an important interview. I asked him why not let s appearance. He blurted out the Chinese Taoism quote “a, XiaZiChengQi”, in order to answer my question, and also write this line of Chinese characters in my interview on this.

I asked why he become a Yale students. In 1972, zhang was born in Zhumadian of henan province in central China (Zhumadian) of a village, his family is not rich; To the entire province college entrance examination scores after the first result was admitted to people’s University of China (Renmin University), learning financial professional.

he had wanted to graduate school abroad, but suffer from cash-strapped. “I submit application to American graduate school of the university of the reason is simple – I learned that they are the only can provide scholarship to graduate school.” He explained in English with a slight American accent. “I got the scholarship to Yale university. Unfortunately, after to Yale, I just learned that he had a one-year scholarship (the graduate student stage for three years). I need to find a job, I finally found an intern job in Yale investment office.”

swensen in the sincere students see because of the huge potential, and taught him all kinds of investment skills. At Yale, zhang took swensen’s writings “Institutional Investment and funds Management innovation” (Pioneering Portfolio Management, the An Unconventional Approach to Institutional Investment, 2000) translated into Chinese, in the article he pioneered “fiduciary” and the “considerable” into Chinese of the two words “trust” and “acceptance”.

at Yale, zhang lei, a voracious well-read. “When I learned that corporate annual reports are provided free of charge, to the s&p 500 (S& P 500) for every company issuing annual reports, “he said. “Let me incredibly, the annual report is free of charge, from management to discuss company business and capital and equity investment returns in this part, I have benefited a lot from, this is a very good training.”

he said he once felt desperate to intern work, then to a Boston consulting company to interview. The interview was destined to fruit. Due to the cash-strapped, zhang lei, requires companies to pay the return fare in advance, rather than later to submit an expense account, want to know, after reimbursement is practice. “The other asked me a company should be set in a certain area to build a classic example of how many gas stations. I have asked each other, ‘why do consumers need gas station? ‘”

“to think of it, this is not a stupid question. The role of the gas station is? As it is? For example, if the location is more suitable for open sundry shop? Can you change careers? For example, due to the electric car popularity no longer need to gas station. But the man interviewed me sympathetically looked at me and said, ‘your ability when the consultant may be lacking. ‘ ‘a migration of the interview I participated in a lot, but received the second interview invitation, liao liao.”

this interesting past reveals hillhouse capital investment philosophy. “We have always focused on the company’s long-term performance,” zhang said. “We only ask the basic problem, which usually allows us to get different insight.”

we chat, and rose up and joining the long wait in the deli, and from the writing on the wall after selecting various sandwiches and salad lunch. Ordered zhang lei, a hard bread with spicy chicken sandwich, and chose a pepper acid beans salad (he said it reminded him of his favorite eat a home cooking, cowpea halogen surface. I will be the kalgan mushroom (Portobello mushroom), red peppers, and cheese Panini sandwich (Panini) and hot mushroom salad. Before I pay the bill, and he picked out a large bottle of soda in the tray.

zhang lei will show a management talent at the age of seven. His house is located in the beijing-guangzhou railway (guangzhou is the largest city in the central south) near the train station. Summer vacation, zhang lei, next to the station on a small chair, his comic books to drop off passengers and walkers.

in the high school students zhang was admitted to people’s university of the summer holidays, he expanded his rent book business. In 1990, the scrambling to make money — – all new magazine published how and how to get rich quick to Shenzhen (Shenzhen) the story of the rapid development of special economic zones such as entrepreneurship, Shenzhen 10 years before become to a special economic zone, or obscure small place. Zhang lei, a large number of purchases and then changed hands to resell such magazine. “The Chinese economy is in boom,” what we carry their order to meet up again, he said to me.

we have to temporarily interrupt: both of us into the deli get things, zhang lei, his black jacket on the chair, but a woman pushing a stroller but didn’t see, and account for both of us this table. Zhang did not say anything, but the meal the tray to the table next to no umbrellas, then pick up his jacket. Even with such a table we are glad, because the adjacent parking lot are, and each table has been. On Sunday, as you know, new haven, dining out, available for selection is not much.

again sits after deciding, he continued his story. “Just began to rent a book, I encountered the inventory problem, and I find that I earn the money spent on to buy water to drink. So I decided to order just a few magazines, and then see what good sell. And I also began to sell mineral water, instant noodles, and hunan sausage. If a few things to buy, I would make a corresponding discount.” Begins to Beijing, the veteran salesman has net earned 800 yuan ($170) at the time.

zhang lei said, in contrast, their carefree childhood. His parents generation have experienced the cultural revolution (the cultural revolution, but he was born in 1972, when the cultural revolution of the unrest is nearing an end. During the cultural revolution, he said, parents suffered a lot, but they always optimistic, never mention in the past. “My parents’ generation, there is no us such a good opportunity,” he said. Today, his life is still very frugal, almost to the extent that they have. When I asked if I could give him order some dessert, ice cream or bread counter rather than the light when you drink soda, he politely refused. Looking at the sun lay hands on melting ice cream cone from our side after Nica Market store guest, I was straight saliva.

nowadays, a lot of newly graduated from the Chinese students choose to stay at the university of America’s top U.S. jobs. The only exception is the “princelings” (princelings) – China’s ruling elite children, they in addition to home, have no other choice. Young Chinese emigration began using americans view of their country. They saw the pollution of the environment, political corruption and a lack of freedom of speech, worry after back to home is difficult to adapt to.

but zhang said she had been clear one day will return home. “I’m back in 2005,” he added. After graduating from Yale, he worked in an emerging market hedge funds in Washington, dc. “I know that China is on the verge of competent at that time, the whole country shows vitality, everyone can make a fortune. Domestic entrepreneurs and the emergence of many vibrant high-tech start-ups. “A return to the domestic, swensen starting from Yale investment funds set aside $20 million fund, founded hillhouse capital company to help him, then add $10 million.”

in 2005, many investors still see China there are a lot of vigor and vitality of entrepreneurs with high-tech start-ups. “Tend to be the world to learn before the United States,” zhang said. At first, many people believe that China’s Internet companies just blindly imitate the United States and other countries, are not consistent with the original business model and original technology. “But China leapfrog to overtake the United States in many ways, especially in the field of mobile Internet,” zhang said. The development of China’s Internet companies global scale and development speed. Nowadays, about 600 million Internet users in mainland China, will soon become the world’s largest e-commerce market.

zhang take most of the funds to raise money from Yale at first in China’s largest Internet service and social portal tencent company. This is his epoch-making first investment, is also the most lucrative investment, although he said he didn’t watch the tencent QQ social network platform of development prospects.

to know tencent company developing power, his field research the local market. “I thought: as the user is more and more informed, will be away from QQ, instead of upgrading using other web services,” he said. “But at home, though not every cell phone or fax, but everyone has his own QQ number.” Today, he continued to keep tencent co, tencent has been successfully listed in Hong Kong.

when a Chinese entrepreneur contacts with each other, zhang was usually “behind” “push”. As the long-term holders and e-commerce giant tencent shares jingdong (, the first group of investors, he is responsible for the strategic cooperation between the two companies.

jingdong successfully listed on the Nasdaq (Nasdaq) recently, before that, zhang lei is the third largest shareholder jingdong. “Both cooperation makes perfect sense,” he said. “Tencent has e-commerce platform, and jingdong online sales is very good, and has set up a complete logistics warehousing channel, jingdong, obtained the huge user base of tencent.

“jingdong is equivalent to the Amazon (Amazon) with UPS Courier service company (UPS) of epoxy resin,” he added, the vivid examples how China in silicon valley began the business model successfully achieve leapfrog development; Explained that China’s domestic is not at the same time with companies such as UPS, while China’s store retail far less efficiency, the United States.

at the end of may, jingdong successfully listed on nasdaq, a market capitalisation of $26 billion – hillhouse capital again. Its initial investment of $22.5 million to the end of may suddenly turned into a $3.9 billion. (jingdong founder Liu (Richard Liu) is now a part of science and technology of China’s richest, completely can match the founder of baidu, tencent and alibaba.)