The operation of tens of billions of investment bank giants to join the emerging car manufacturing forces, on the one hand, reflects the degree of convergence between capital seeking and autos, and on the other hand it also indirectly releases the subtle relationship between the investors behind the emerging car manufacturers and these investment banks. This has to be noticed.
On March 19, Beiteng Motors announced that the former Goldman Sachs China Investment Banking Director and General Manager Cheng Qing joined BYTON Autos and served as co-president, managing capital market and investor relations management.
And half a month ago, Xiaopeng Motor had announced that Gu Hongdi, chairman of the investment bank of JP Morgan Chase Asia Pacific, had assumed the position of vice chairman and president of Xiaopeng Automobile. Presided over the work of Xiaopeng Automobile in global strategy, finance, financing, international cooperation and mergers and acquisitions.
When the commission-bearing investment banking giants and the tumultuous Internet-building industry come together, this irrelevant two industries can produce an extremely delicate supply and demand relationship in the moment. When public opinion is used to seeing this phenomenon as a "new normal" in the personnel changes in the auto industry, the source of push for the two parties to come together is a truly intriguing place. Given the uncertain investment environment and the market environment where the challenges and opportunities of the automakers coexist, what are the investment bank giants in the Internet industry?
Who is the investment bank giant?
Whether it is to join the growth of Baiteng, or switch to Xiaopeng's Gu Hongdi, the media all call it "the investment bank giant." So what kind of similarities exist in the resumes of this category of people, so that the media gives them such a title. Choosing to join the two new car makers is related to capital.
Gu Hongdi
Take Gu Hongdi, who has just joined Xiaopeng Motors as an example, he has extensive experience in financing and mergers and acquisitions. A few years ago, Gu Hongdi played an important role in the IPO process of Alibaba. In the later stage, he also deeply participated in capital financing, mergers and acquisitions or corporate restructuring transactions of leading companies such as Xiaomi, Ctrip, Baidu, and Shengda Group. While engaged in investment banking, he also directed many benchmark investment banking projects in the industry, with a total transaction volume of more than US$200 billion.
One of the most notable is his involvement in the Lehman Brothers global mergers and acquisitions and global medical group on Wall Street in New York from 1998 to 2004, when he joined JPMorgan. Gu Hongdi helped many well-known companies in North America, Europe, and Asia They realize transnational mergers and acquisitions transactions. It is precisely because of its rich investment experience that Xiaopeng Motors has joined Gu Hongdi and hopes to serve as a senior strategic consultant for the company.
Growing green
Similar to Gu Hongdi's experience, Justin Green, who has just joined Baiteng, has similar experience in financing and M&A. In his early years, Green was responsible for the provision of commercial bank and investment banking products and services to Chinese corporate clients, which involved a wide range of acquisitions and mergers, capital and cash management, trade and project financing. In 2004 alone, it had successfully helped Chinese companies complete multiple overseas mergers and acquisitions, and the related financing amount exceeded US$2 billion.
The young boy from Hunan who took charge of the West Bank more than ten years ago was once the chief executive of the investment banking department of Standard Chartered Bank in China. He also held senior positions in various institutions including the First Bank of the United States, Toronto Dominion Bank of Canada, Alexandria Management Consulting, Metropolitan Life Insurance, and the French Peugeot Group.
There have been media reports. In his over 20 years of experience in investment and financing, Cheng Qing successfully led the completion of tens of billions of dollars in financing and M&A transactions, and assisted Sinopec Group in the acquisition of nearly 3 billion U.S. dollars in Angola in 2004. This incident was also referred to as the largest merger of Chinese companies in Africa at the time.
Similar business experience also led to tens of billions of financing and mergers and acquisitions experience and decades of experience in investment banking. What is intriguing is that these “businessmen†who have been involved in investment banking for several decades and why they have paid attention to the newly-emerged manufacturing companies that are not yet sound?
Why are Xiaopeng and Baiteng?
If the use of "flood and beast" to describe the current emerging manufacturers is not excessive, foreign media once pointed out that the global automotive industry is facing a huge number of variables, the impact of AI, electric, Internet, sharing travel, the traditional automotive industry Has brought revolution from the three core areas of the industrial chain, product form, and business model. Under this background, capital and scientific and technological elites began to flood into this area.
For a time, the rise of the interconnected vehicle makers has left the outside world unpredictable, while also allowing the traditional manufacturing industry to talk about color changes. Some foreign media commented that the new vehicle builders today are "spiritual ecology."
However, for Gu Hongdi and Cheng Qing, the ability to continue to operate a large amount of funds in them becomes one of the core indicators for measuring their participation. Enterprises like Xiaopeng and Baiteng can be preferentially excluded from the development prospects. Talking about, the current financing capacity and capital reserves of enterprises have become an important factor.
Xiaopeng car
According to the statistics, initially in 2018, Xiaopeng Automobile has completed a total of RMB 2.2 billion in Series B financing, and has received joint leadership support from Alibaba Group, Foxconn and IDG Capital. With the completion of the B round of financing, the accumulated funds of Xiao Peng's vehicles have already exceeded RMB 5 billion.
The other company, BYTON, also officially completed the A round of financing last year and plans to complete the Series B financing in the first half of 2018. According to the information, the company's existing major shareholders are BYTON Benteng's initial management team, Harmony Auto, Aodong Investment, Lianhe Automobile, Junlian Capital, Suning Group and Fengsheng Group, an industry investment fund and Shengtuo Group.
Baiteng chairman Dai Lei
It is not difficult for people who understand the new forces of automakers to find that although these two new companies are not the largest ones in the entire new construction industry, they all have certain advantages in their respective financing capabilities. In addition, some factors that have been ignored by the outside world have also become the place where investment bank giants favor them.
According to news analysis, Xiaopeng Automobile has a strong Ali gene, and the company's operating funds come from strong support from Ali. Another company, Baiteng, received the platform from the chairman of the Harmony Automobile Group, Feng Changge, at the Detroit Auto Show last year, which indirectly showed the company. The in-depth contacts with the harmonious cars at the level and the outside world's ability to operate the company's funds.
As the later project participants, the younger generation or Gu Hongdi are very clear that although the two companies have a certain amount of financing capacity, they are by no means as talented as the ordinary emerging companies. For themselves, what they need to do in the future is to be able to lead the company to have greater actions at the capital level, and at the same time ensure that with the inflow of capital, the company will maintain a long-term, stable and healthy development.
The New Forces of Rising Cars Have Their Gravity
Whether it is growing up or Gu Hongdi, when companies announce that they can get such people to join, the outside world tacitly understand their high salary, an expensive, a new, the two sides could not get together why the final "?
As a new entrant in the automotive industry, capital has become the first step with competitors PK. Whoever can gain an advantage in funding will be able to take the initiative. The question is: As a traditional manufacturing industry, what is the financing attractiveness of emerging manufacturing companies?
In today's relatively obstructed investment environment, traditional investment fields such as real estate and electronics are basically saturated and it is difficult to gather large amounts of funds. In contrast, the rise of new vehicle builders has provided a new piece of land for the investment community. Investment advantages such as long time-to-investment, large-scale capital requirements, and high-risk returns are highlighted.
For example, the new forces of the carmakers such as Xiaopeng Automobile, relatively open ideology, coupled with high demand for capital, and the relationship between the capital forces behind and investment banks, Gu Hongdi with Ali's IPO experience is not difficult to join the Xiaopeng car understanding.
However, whether Xiaopeng or Baiteng, the original intention of the newly-built car makers to chase capital is not only to supply themselves, but also hopes to establish a “threshold†for the amount of funds for future intruders. The original intention of setting up a threshold is not only to resist small-scale enterprises, to avoid the occurrence of industrial chaos, but also to gradually form a polarization of the development trend, and ultimately rely on continuous financial volume to achieve the purpose of the strong self-improvement
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