Author’s name is Song.
Source: Song, not Chief.
The industry is in a slump, fundraising is not going well, and the proportion of management fees is decreasing On the other hand, exit is becoming more and more difficult, and even if there is an exit, it is difficult to have excess returns.
So, the investment organization decided to give the investment manager a pay cut. The partners said We should face the winter together.
However, direct salary cuts do not show the management level of the partners. It must be justified, so that the investment manager is convinced.
For example, set stricter and more detailed KPIs, and set KPIs that can’t be accomplished at all.
What are the fancy KPIs? I interviewed some peers, organized as follows.
A year-end bonus
First of all, there are the obvious ones, which can be quantified into KPIs and are linked to the year-end bonus.
Investments Setting a rigid annual number of investment projects Amount.
Note that this is an indicator of certainty that you will not finish. Why do I say so? Because you add up this metric for all the people on the investment team, and you may find that it takes almost a year or two to get the organization’s active funds, completely invested.
And that’s not realistic. Typically, the investment period for a fund is four years, and it takes four years to invest a fund.
In other words, in an organization, there must be a certain percentage of employees who can’t complete the kpi of investment, can’t get the full or even can’t get the investment award.
Exit The irr dpi of each project is implemented to individuals in the form of KPIs every year.
In January every year, the partners will talk to me and ask me to judge how much profit and exit I can achieve in the new year for the post-investment projects I am responsible for. In turn, they have to set KPIs for me.
What are the KPIs? Is this something I can judge and decide?
Fundraising All staff must be involved in fundraising. The participation of the investment team can be reflected in the independent exploration of lp, reserving projects for local government lp, and cooperating with the fundraising team in some daily work, etc.
At the end of the year, colleagues in the fundraising department give a grade to colleagues in the investment department to see how much they have participated in fundraising matters.
However, this scoring is one-way, and the investment team is not authorized to give scores to the fundraising team. So the fundraising team has no incentive to give the investment team a high score.
After all, the fundraising incentives are only so high, and by giving the investment team a high score, the fundraising team’s incentives are lower. No one would do that.
II Everyday Relevance
Some small matters of daily work, the implementation of demerit points system, the beginning of the year is a full 100 points, the end of the year score and then linked to the year-end awards.
Project development Every week there should be three unfamiliar visit calls to new project parties, and every week and a new project party to sign a confidentiality agreement. To leave a trace, the General Department to check.
Resource development Visit one peer investment organization or industrial resource every week. This is evidenced by a punch card and a visit log. Checked by General Affairs Department.
For business trips, you need to register your itinerary in advance. Points will be deducted if you fail to register on time.
Reimbursement submission date should not be more than one month from the date the expense was incurred. Points will be deducted for exceeding this.
Agreements for investment projects The date of filing of documents for the three meetings must not be more than two months from the effective date of signing. If it exceeds, deduct points.
Project due diligence stage, due to incomplete information, failed to due diligence into the field on time, deduction of points.
Points will be deducted for failure to leave the due diligence stage on time due to insufficient cooperation in due diligence and limited disclosure of information and business.
On business trips, you must pin the punch card at every destination, including the airport and high speed rail station. Points will be deducted if you forget to punch in.
The itinerary of the program, the peers, and the clock-in record should be matched. No reimbursement for trips that don’t match.
III. Travel-related
This is the easiest way to control costs by cutting travel expenses. Accommodation standards, first per person to cut 100. before each person is allowed to stay in the hotel 500 yuan, now changed to 400.
For food and beverage such as compressible space is very large cost items, but also absolutely can not let go.
A good friend of mine is in the organization, the food and beverage subsidies for business trips, the earliest is based on the number of days of business trips, a fixed daily subsidy of 150 yuan. Direct reimbursement is accounted for on a daily basis, regardless of how much you actually spent on meals.
Later changed to actual reimbursement. Each meal consumption must be invoiced, and the name of the invoice and the name of the payee’s account must be the same. If you don’t, you won’t be reimbursed.
And the amount is still 150 dollars per day. If it’s more than 150, it’s only 150, and if it’s only 100, I’m sorry, it’s only 100.
In a city like Shanghai, Guangzhou and Shenzhen, 150 RMB per day means at least one meal, at one of those very small street restaurants. Or maybe only by takeout.
With those kinds of small restaurants, it’s usually harder to match the name of the invoice with the name of the payee’s account, or maybe even just no invoice at all. If it’s takeout, it’s even harder to be consistent and provide an invoice.
Hello, I’d like to order a $30 takeout, can I get an invoice?
30 dollars and you want an invoice? Fuck off. Poor bastard.
After this, each employee may only incur $100 per day in food and beverage costs when traveling on business. I mean, only $100 to meet reimbursement requirements. Another cost savings for the organization.
I want to end with a solid point. Why are organizations cutting salaries and controlling costs?
A business An organization to have a profit, we need low cost. I’m sorry, but you, as a person, are the organization’s biggest cost.
IV A ray of light
Last week, rumor has it that we will set up a national guidance fund with a duration of 20 years. People were running around with tears in their eyes saying Patience Capital is finally here.
Song, the organization I work for, is also ambitious to apply for this mother fund. And everyone seems to have regained some confidence in the future of this organization, and even in the future of the investment industry.
Only I, Song, bluntly asked in the group What is the rate of the management fee of this mother fund? Will not too high ah? After all, before the kind of big, national mother fund, the rate is not high.
Partners directly angry bastard! Letting you manage the money is an endorsement. And you want to manage the rate?
If the management rate is low, we’d rather take a pay cut than apply for it! It’s a great honor for us!
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