readease Chapter 114 New Company Establishment
Chapter 114 New Company Establishment
Chapter 114 New Company Establishment
On the bustling streets of Queens, New York, stands an eight-story building, like an old man weathered by time, showing his age.
The building's exterior walls have long lost their former luster, and the mottled bricks are covered with traces of wind and rain erosion. In some places, the plaster has peeled off, as if it might fall off at any moment.
The windows were not as clear as those in the new building; some had stubborn stains on them, and looking inside through the glass, all you could see was a blurry shadow.
Built in 1947, this building was, according to real estate agents, one of the top 20 tallest buildings in Queens at the time, and it occupied a prominent place on the city skyline.
At that time, most of the surrounding buildings were low bungalows, and this eight-story building stood out like a crane among chickens, becoming a landmark in the eyes of many.
Today, with the continuous development of New York City and the rise of skyscrapers, this old building has long been submerged in the bustling urban landscape, and its former glory has become a thing of the past.
However, the real estate agent was trying to sell to Ernst with great enthusiasm, using various reasons to raise the price, but Ernst remained unmoved.
He stated firmly that he wouldn't pay a single cent more than $2200 million.
Ernst's second trip to New York was not only to discuss Google's second round of financing with Wall Street, but also, most importantly, to establish a new company under his name in New York.
This eight-story old building is the office space he found for the company.
"You really are unconventional; every choice you make is beyond my expectations."
Inside Ernst's office, Massim watched as his secretary put down the coffee, then swayed her hips—as if about to break free from the constraints of her pencil skirt—as she pushed open the door and left. A hint of amusement lingered in his eyes, and he even whistled before the door was fully closed.
After the secretary disappeared outside the door, Massim turned to look at Ernst, a mocking smile playing on his lips. "To be honest, you, the boss, should have already inspected the goods, right? If that figure were to be hunched over a desk organizing documents, it would be hard for any man not to be tempted."
Ernst frowned; he really couldn't figure out what this guy's intentions were.
Massim's sudden appearance took him by surprise, and he even suspected that there might be spies planted by the other side around him.
Ernst never disclosed the details of establishing the company to anyone, and he found office space through a real estate agent, not a bank.
Because he was recognized by the other party, who mistook him for a super fat sheep and immediately made an outrageous demand for 40 million US dollars.
Ernst didn't want to hear what the other person was going to say next, and turned to leave.
Seeing Ernst's expression, the real estate agent wasn't embarrassed at all. He immediately changed his tune and chased after him, saying that the price was negotiable. In the end, Ernst won by a hair's breadth and acquired the building for $2200 million.
The meager number of employees in the office building at this moment were all recruited by Ernst after he found HR, finance, and other personnel through headhunters.
Ernst never expected that on the third day, Massim would appear in his office without a word.
"Ernst Asset Management, what kind of business do you want to pursue?" Massim continued, his gaze sweeping across the office, as Ernst did not respond.
The office was simply furnished, and the air was filled with a peculiar smell of a mixture of new renovations and old building materials.
This time Ernst did not remain silent, because he knew that silence would be of no use.
He had always thought that Massim had a lot of energy, but he never expected it to be this great.
The other party's appearance was undoubtedly a demonstration of their connections and influence; otherwise, they wouldn't have appeared here for no reason.
This illustrates at least two points: first, the other party wields considerable influence within the officialdom.
Ernst thought to himself that the only way to get in so quickly was through official channels.
The information about the establishment of Ernst Asset Management Company can only be obtained quickly through official channels.
Secondly, one has entered the other party's field of vision and is being closely watched by them.
"I'll probably get involved in a bit of everything," Ernst replied casually.
An asset management company, simply put, is a company that manages assets for individuals or institutions, but the scope of assets is extremely broad, including not only money but also physical assets.
For example, real estate has different value fluctuation patterns depending on its location and type. Managing real estate requires not only paying attention to market conditions, but also handling a series of matters such as leasing and maintenance.
Take stocks for example. The stock market is constantly changing. Behind every stock are the company's operating conditions, industry dynamics, and even the macroeconomic environment. Managing stocks requires accurate analysis and decisive decision-making.
Funds are also a common type of investment. Different types of funds have different risks and returns, and need to be allocated reasonably according to the client's needs and risk tolerance.
However, managing funds will always be the core business of asset management companies.
There are many types of asset management companies in the financial sector. In a narrow sense, they include asset management departments of fund companies, insurance companies, investment banks, and commercial banks.
In a broader sense, the scope of asset management companies is even wider.
Private equity investment, hedge funds, venture capital, insurance companies, trusts, etc. can all be included in this category.
Any company that entrusts its assets to you for management and aims to generate more money can be considered an asset management company.
From the client's perspective, asset management can be divided into three main categories: investment management, wealth management, and proprietary trading.
Investment management typically targets large corporations and financial advisors, developing investment plans that align with their corporate development strategies or clients' financial goals. These plans usually involve substantial sums of money and have relatively long investment cycles.
Wealth management primarily targets high-net-worth clients who often possess enormous wealth and require professional teams to provide comprehensive services such as asset allocation, tax planning, and estate planning to preserve and pass on their wealth.
Proprietary trading refers to a company using its own funds to make investments and generate profits through its market analysis.
In this model, the company needs to bear all the investment risks.
Based on their business models, asset management companies can be broadly categorized into four types: investment banking asset management companies, investment asset management companies, disposal asset management companies, and service provider asset management companies.
Investment bank-type asset management companies, as the name suggests, have a profit model similar to that of investment banks.
They inject the company's own funds and resources into a promising enterprise.
For businesses facing difficulties, they will use their professional management experience and resource integration capabilities to help the businesses overcome their predicaments and improve their operating conditions.
For startups, these services help them grow rapidly and expand their market share.
In this process, the asset management company earns returns on funds and additional dividends from projects, and finally decides whether to sell its shares based on the company's development.
Larger investment bank-type asset management companies may even integrate the entire industry and control its pricing power; BlackRock is a typical example of this.
The second type is investment asset management companies. The operating model of these companies is simply to buy low and sell high. Blackstone Group is a leader in this field.
They typically do not seek long-term benefits and strategic goals, but rather choose to take advantage of others' misfortunes.
For example, when an economic crisis hits, the market is in a slump, and many promising companies default on their debts or even face bankruptcy due to broken cash flow.
At this point, investment asset management companies will buy up these defaulted debts and defaulted companies at extremely low prices.
Once the economy recovers, the value of these debts and companies will rise as the market recovers, at which point they can be sold at a higher price, making a huge profit from the difference.
The third type is asset management companies that handle non-performing assets. These companies' main business is to help banks deal with non-performing assets, selling off those assets that banks find difficult to dispose of and earning a large profit margin.
For example, mortgaged properties and overdue IOUs.
These houses and IOUs become non-performing assets when held by banks, and can only be sold at low prices to asset management companies specializing in disposal.
The last type is service-oriented asset management companies. They help financial institutions to release assets upstream, help investors match resources downstream, complete transactions in the middle, and earn transaction fees.
The most typical example of this model is Morgan Stanley.
Morgan Stanley will bring together all the distressed asset companies in the world to its platform, and with its powerful platform and extensive influence, it will seek more investors.
Some companies may face bankruptcy and be unwanted within their own circles, but this can change when Morgan Stanley expands its sales globally.
Perhaps a certain technology or product of this company is exactly what investors in other countries or regions need. If both parties find the price to be right, they may hit it off and reach a deal.
"You really do have a wide range of interests," Massim said, not expecting Ernst to give such a reply.
As the saying goes, "Don't bite off more than you can chew." Being all-encompassing sometimes means being mediocre. It's better to find one direction and stick to one path.
Massim stood up, took his coffee cup, and slowly walked to the window, gazing at the street scene outside.
Outside the window, pedestrians hurried along the street, and vehicles flowed endlessly, creating a bustling urban scene.
"However, it is unexpected that a financial company like yours does not have its headquarters in Manhattan."
Ernst watched Massim's retreating figure, his brow furrowing slightly once more.
He had only met Massim twice and originally thought he was a good friend, but Massim's words and actions at this moment made him really unable to figure out what the other party wanted to express.
The air in the office seemed to grow heavy at that moment, and the clock on the wall ticked away, each tick like a blow to Ernst's heart.