Core competitiveness 1. Amount of funds, that is, financing channels: When setting up a private equity fund abroad, partners need to use various social resources to require funds. The United States has mature pension funds, insurers and In the sovereign system, they usually have an annual investment ratio in Alternative Assets, usually ranging from 5% to 20%. Many large private equity firms have specialized financing departments that recruit a large number of people from pensions. of executives. So if Blackstone can manage 20% of all PE shares of a large social security fund, it will have the advantage of grabbing deals when investing. This is why Blackstone acquired Parkhill (if I remember correctly) as a specialized fund-raising company. platform company. At the same time, the larger the size of the fund, the larger the fund management fee can be charged, which can ensure a comfortable life. Please hire the best M&A banker, lawyer, tax advisor and establish relationships to ensure that your deal goes smoothly. Take KKR as an example. When it acquired NABISCO, it hired four investment banks as financial advisors, including heavyweight M&A giants like Lazard, in order to ensure that its opponents would not hire such powerful investment banks to pose a threat to itself. So financial advisors The cost can be imagined. So funding is important. Domestic fund raising also shows its unique talents. There are many sources of funding. Recently, there are many government-funded guidance funds. 2. Ability to find projects: The reason why Sequoia does so well is that it started early. Although it is not the earliest VC, it has accumulated a large amount of industry resources and professional service team resources in the long-term investment process. Once a good start-up appears, all kinds of public relations, intermediaries, and celebrities in the industry will recommend it to Sequoia. It picks up the deal at the forefront of the market and throws the rest behind, and small funds start Robbery. For another example, some fixed Jewish religious dinners and social activities must be attended by private equity leaders. This kind of circle is full of various deal opportunities, which is difficult for ordinary people to enter; the usual method is to use agents, and some companies will invite Some intelligence agents or agents mediate between deal parties and private equity funds, or they may come forward to obtain some deals.