At that banquet of the Hilton family, the high-ranking leaders of the giants.

In fact, they have preliminarily negotiated with Abel to subscribe for the shares of Smith Capital's first private placement.

At that time, it was generally negotiated.

Only then did the Manhattan District Attorney's Office, which began investigating Smith Capital.

This move made the capital hyenas with a keen sense of smell suspicious.

In the next few days, none of them came to the door when they said they were going to come to the door.

But in turn, the sense of smell of these capital hyenas is really sensitive.

Caroline came over that day and said that the Manhattan District Attorney's Office, after terminating the investigation into Smith Capital.

That night, someone came looking for David Mellon.

After consulting with Abel, David met with the managers of Mellon Bank at the headquarters of Smith Capital the next day.

Mellon Bank is also known as Mellon Finance.

That's right, David was the founder and owner of this bank.

However, after hundreds of years, although David and his family still have a little stake in Mellon Financial Company.

But only a little.

Mellon Financial Group and David Mellon can only be said to have some relationship now.

But it is precisely this relationship that allows Mellon Financial to reach a cooperation with Smith Capital as soon as possible.

Subscribed to a certain share of the private equity fund.

Subsequently, Goldman Sachs, Lehman and other companies also came to the door one after another, before Charlie Scharf came today.

There is not much left of Smith Capital's share of the first private placement.

If it weren't for Merrill Lynch being a giant, and Abel would want to get something in Merrill Lynch's hands next.

Merrill Lynch will not even have this 500 million share, because there are really many people who want it.

After all, there are not many other people in New York, and there are really many rich people.

And Abel, the wolf of Wall Street, has been certified by newspapers such as the New York Times and the Wall Street Post before.

This time it was "certified" by the Manhattan District Attorney's Office again.

Too many local tycoons want to try to subscribe for a little share.

To be on the safe side, they don't buy much.

But just like back then, when Peter Lynch and Warren Buffett were just emerging.

In the case of considerable profits.

Even if it takes some risks, the rich are willing to give it a try.

Hence the split, $3 billion private placement.

It's already subscribed.

Merrill Lynch Securities can get up to 500 million, which is still Abel wants to get some resources from Merrill Lynch.

will leave so many shares to be used as a deal with Merrill Lynch.

Hearing Abel's words, Charlie Scharf secretly cursed "FXXK" in his heart.

In fact, he also wanted to come to the door early.

But Merrill Lynch still has concerns.

After this concern was dispelled, Charlie Scharf came to the door.

But it's already a little late.

Over the past few years, Merrill Lynch has become more and more conservative.

The annual report is half-dead every year, and occasionally even falls.

In parallel time and space, Merrill Lynch finally couldn't bear the 08 subprime mortgage crisis.

It's just that Merrill Lynch's assets are good, and Bank of America has come out to take over.

Unlike Lehman, who died too much.

In the end, he really died.

Charlie Schaff no longer hesitated, he said decisively: "There is no problem. What about the contract details? ”

"Smack~"

Abel snapped his fingers, and David, who had been smiling and waiting next to him, immediately took a stack of papers to Charlie Scharf.

"It's all over here, sir." David smiled.

"Thank you."

Charlie Schaff hurriedly took it, and then quickly flipped through it.

Charlie Schaff took a closer look and found that the front was generally decent.

The subscription fees and management fees at the back are also decent.

For example, the subscription fee is 1%, that is, you must pay a one-time subscription rate of 1%, which is charged outside the price.

That is, if you subscribe for 1 million and the subscription rate is 1%, you need to remit 1.01 million funds.

Redemption fees are also normal. The 2% figure is low by Wall Street's standards.

These are pretty normal.

Outrageous is the management fee.

Normally, the management fee is generally about 2.5%-5% of the entrusted funds paid every year.

However, in this private placement of Smith Capital, there is no management fee required in the contract at all.

That's right, not even 0.1%.

But....

The key is in the bonus commission fee later.

This is a very high number.

Bonus commission fee refers to the need to withdraw a certain amount of profit as performance remuneration to the manager before the dividend is distributed.

This fee is only withdrawn during the bonus redemption or bonus reinvestment period, and there are three types of fees.

A certain percentage of the profit is extracted according to the project,

A certain percentage of the total profits of the entrusted funds are withdrawn,

A certain percentage of the excess profit other than the income proposed to the investor.

This proportion is generally around 10%-40%.

10% is low, so it's very little.

40% is very high, so the same is very little.

However, Abel's contract requires that the proportion of the dividend withdrawal fee is as high as 50%.

That's a bit ridiculously high.

But that's not outrageous enough, it's outrageous that Charlie Scharf still sees.

In this private placement, the closure period in the contract is only 180 days.

For money managers, the longer the better.

Most private equity funds have a closed period of more than five years.

For a longer one, even ten, fifteen, or twenty years.

Even if it is short, it is generally more than three years.

The 180-day closed period is unheard of in the normal fundraising of large funds.

Seeing the end, Charlie Scharf swallowed his saliva and his throat moved.

He organized his words, looked at the relaxed Abel, and said softly:

"Sir, this contract is a bit too extreme."

"The most extreme is the exaggerated bonus fee, and the 180-day lock-up period that is very unfavorable to you."

"You ....."

Before Charlie Scharf could finish his sentence, he was interrupted by Abel.

He said to David Mellon, "David, tell Mr. Schaff. What is Smith Capital's floating profit from March to now. ”

"Uh..."

Here we go again, David thought.

But this set is really easy to use.

David smiled: "In total, it is 3.645 billion US dollars. Mr. ”

"And before that, what was our principal?"

"It's $390 million."

"Very well, thank you David."

"You're welcome."

After the double reed, Abel looked at Charlie Scharf again.

"Sir, I have confidence in this one hundred and eighty days.

Earn a lot of profit for you guys. So the 50% is what I deserve. ”

"And I also believe that after the end of this 180-day short-term private sale.

You'll think it's worth it to give me a 60% bonus. ”

"So that's why I don't want a management fee, but a 50% bonus fee, and the lock-up period is only 180 days."

"Because after 180 days, this private sale is over.

And by the time Smith Capital went through its second private placement, the conditions were different again. ”

"Now, do you understand, sir?"