Reborn with Consumption System-Chapter 652 - 283: Killing Eight Birds with One Stone

Normal asset managers, when handling similar projects, would certainly strive to squeeze their own profits to satisfy investors' demands. Earning less is better than earning nothing at all, right?

In fact, 0.5% of 7.5 billion is already quite substantial. In another year or so, asset management teams from top-tier investment firms would be fighting tooth and nail for such a project.

Therefore, with the 0.5% consulting fee already secured, the easiest and most effortless approach would be to pass the cost savings from intermediaries on to Magic Capital Bank.

But Han Lie simply wouldn't do that.

When he saw an opportunity, he insisted on squeezing blood from a stone, even if he had to bear the greatest risk.

What specific advantages could Han Lie gain from this operation?

First, he forcefully carved out an additional 110 million in intermediary fees from the Jinguang project.

Second, because he provided Magic Capital Bank with ample compensation, the intermediary fees could be collected upfront; a simple note on the contract would suffice.

Third, he instantly filled a 5 billion mixed-type tiered fund to capacity.

The new fund was directed towards index ETFs, which didn't conflict with his existing private equity, providing an excellent supplement to profits.

Fourth, there would be no problem selling the priority portion of the fund. Offering it to anyone was a favor, providing high operational flexibility. Consequently, Old Jin would actually be indebted to Han Lie.

Fifth, the junior tranche of the fund carried high risk but was also a great opportunity. It perfectly met the needs of non-core clients who couldn't fit into his private equity, such as Lai Chenting, Second Sister Jin, Uncle Cai, and others.

Han Lie's stock-oriented private equity was his flagship product, exclusively for core connections. However, these non-core clients also held value and were worth cultivating. See? Another round of favors successfully cashed in...

Sixth, the expected profits from the junior tranche of the new fund were extremely high, more than enough to boost Old Xing to the chairman's seat of the financial holding company. How will you thank me when the time comes?

Seventh, a part of the new fund could be used for bank fixed deposits, purchasing government bonds, and corporate bonds, serving as excellent bargaining chips for quid pro quo deals, which might be extremely useful when dealing with Gao Diaomao.

Eighth, he maximized the monetization of his influence across multiple fields.

A simplified operational plan is indeed hassle-free and risk-free, but it would be too wasteful of Han Lie's current range of resources and capabilities.

Only the current plan could harness every ounce of his energy to the extreme. This strategy involved forging alliances and ensnaring all relevant parties in a single project, where everyone could find their niche and reap unexpected rewards.

Textbooks wouldn't dare to describe this level of resource integration capability.

If Han Lie pulled it off, one can only imagine the sensation it would create.

And Old Jin couldn't see that far ahead. It wasn't a matter of intelligence; Han Lie simply played his cards too close to his chest.

Old Jin mulled it over for a long while before confessing, "Initially, I considered raising the loan interest rate for SAIC to, say, 5.2%. Then, I'd have SAIC's fund management department acquire the Jinguang project at 6%..."

Han Lie smiled without a word, listening patiently.

Logically, the most straightforward approach for Magic Capital Bank would be to squeeze Han Lie's profits, thereby directly boosting their off-balance sheet income. SPD Bank had done precisely that, offering Han Lie a fixed income on a take-it-or-leave-it basis.

But now, Old Jin hesitated.

"My bottom line is 10 billion going out at a 6.5% annual interest rate. Your plan effectively means a fixed 5.5% return on 7.5 billion, plus 2% sales and custodianship fees on 5 billion, and 6.5% interest on the 1 billion priority tranche. That's 412.5 million from the fixed return, 100 million from fees, and 65 million from interest, totaling 577.5 million. Even if we directly purchase the priority portion of the fund, our final profit would still be short by 72.5 million... And since we'd be channeling through PMC to invest in wealth management products, the costs would not be insignificant, potentially bringing the actual gap to around 100 million. Mr. Han, how would you explain that?"

Jin Yu watched Han Lie intently. Though he verbally sought an explanation, he was actually brimming with anticipation. He hoped for an unconventional answer—one that might not prioritize profit but had to offer significant imaginative potential.

Han Lie's expression turned solemn as he calmly spoke.

"President Jin, from my humble perspective, I would not recommend your bank personally dive in to purchase the priority shares."

"Oh?"

Jin Yu's interest peaked immediately, his tense body relaxing slightly.

This answer is the right one.

Han Lie continued, adding a few gestures to his explanation.

"You see, with only 1 billion left in the priority tier, if your bank invests through this channel, after accounting for various miscellaneous costs, you'd retain at most about 50 million in net profit. But can such a paltry sum resolve the developmental challenges your bank faces? I don't think so.

"Profit is undeniably important; it's the ultimate pursuit for all of us in finance. However, your bank is rooted in Magic Capital, fiercely competing with dozens of state-owned and commercial banks in this financial hub. Shouldn't the true top priority be something beyond mere profit?

"Before coming here, I reviewed some of your speeches and studied your bank's development strategy. 'Focus on cultivating and shaping distinctive business features in fields like SMEs, wealth management, pension finance, financial markets, cross-border finance, and online finance, continuously enhancing the ability to sustain development.' That has been your consistent development path, correct?

"The emphasis on sustainable development is excellent, and avoiding direct, stiff competition with major banks is indeed the correct strategy. However, as of now, I have not seen your bank making any significant achievements in 'wealth management.' Perhaps it's due to my limited awareness?"