Original title: fund management chaos! Chunhua Capital was exposed to be suspected of transferring benefits to Hu Zu, the source of the reputation crisis: investor Network

On August 29, there was an article entitled "Hu Zulu, won't your conscience hurt?" "the article brushes the screen network. The article points out that Hu Zulu, a former partner of Goldman Sachs Group and the current chairman of Chunhua Capital, infringes upon the rights and interests of investors. After that, Chunhua Capital issued a statement that another investor disclosed through the media, making the incident further fermented, causing market attention and heated discussion.

The whole incident involves the upcoming listing of the Ant Group and the leading public offering fund Huaxia Fund. For a while, Chunhua Capital has been full of wind and rain.

Suspected transfer of benefits

Chunhua Capital made a public response just a day after the release of the long article. The statement stressed that, as a fund manager, Chunhua Capital has always been diligent and conscientious. The publishers of the revelations and the so-called investors in the article are not Chunhua customers, and the key plot of the statement is seriously untrue and unfounded.

The reversal also came soon, and the two sides went back and forth, putting all the private equity investments under the table on the table.

After the public statement of Chunhua Capital, according to the "Interface" report, an investor "Mr. Bai" continued to reveal the news. Chunhua Capital's product structure, capital scale and fund-raising orientation have been made public.

Data show that the main investor of Chunhua Capital is a limited partnership fund (hereinafter referred to as "Fund"), called Chunhua (Tianjin) Equity Investment Partnership. GP is Chunhua Capital and LP is a trust scheme. Individual investors can only participate in trust, with a starting point of 3 million yuan and a period of 6 years.

Chunhua Capital and Trust Plan contributed a total of 2.0553 billion yuan, accounting for 0.98% and 99.02% respectively. When the fund is liquidated, only three targets are invested, namely, Ant Group, Huaxia Fund and a medical service company.

The biggest mystery of the incident is how Hu Zulu moved his hot Ant Group stake.

According to the trust liquidation report provided by the whistleblower, the fund invested 200.6 million yuan in Ant Group in 2015 and withdrew at 449.1 million yuan in 2019. Throughout the process, Chunhua Capital did not hold an investor meeting, did not fulfill the agreement to withdraw from the secondary market, and did not inform the transferee of any information.

Especially on the last point, the whistleblower said that Hu Zuwu and Hu Yuanman, the transferees of the fund, were actually Hu Zulu's brother and sister, and the price at the time of the transfer was also far lower than the fair value.

When it exited in 2019, Ant Group raised money at a valuation of $150 billion, with a transfer price of at least 1 billion yuan corresponding to the equity held by the fund. Compared with the actual exit consideration of 449.1 million yuan, it is indeed a far cry.

In this regard, the "Investor Network" sought confirmation from Chunhua Capital on the standardization of the fund's transfer of shares in Ant Group, whether it is a related party, and whether the transaction price is fair. As of the date of publication, the other party did not comment.

Fund management chaos

International first-class team, this is Chunhua Capital to promote the fund to investors when the bright spot. However, Mr Hu also had a lot of controversy when he managed this elite fund.

"Investor Network" obtained the product plan related to Chunhua (Tianjin) equity investment partnership, which detailed records of the trading team, strategy. The plan shows that almost all of the partners of Chunhua Capital come from the Goldman Sachs Group team. In addition to Hu Zulu, there are Zhai Haitao, Huang Kuangjie and so on. There are seven main team members, all of whom have the curriculum vitae of foreign investment banks.

What is highlighted is that the fund has four reserve projects, including fund companies, data settlement information technology companies, medical service companies, and agricultural food companies.

Now it seems that the three projects invested by the fund have actually been arranged long before the fund is raised, but the agri-food companies have fallen into thin air. The recommendation book states that the target is based in Asia and is the world's leading agricultural product.The enterprise, but in the end which one, the fund no longer said.

In this regard, the "Investor Network" on the fund investment target to Chunhua Capital for verification, as of the date of release, the other side did not comment.

In fact, this is not the first time this product of Chunhua Capital has been sued by investors.

As early as 2014, an investor publicly said that Chunhua Capital had exceeded the limit of the agreement on a single investment in the process of fund management and had complained to the Shenzhen Banking Regulatory Bureau.

The target of this investment is the Huaxia fund equity acquired by Chunhua Capital at a cost of 1.8 billion yuan. According to investor description, page 35 of the contract clearly stipulates that a single investment project shall not exceed 20% of the total size of the fund, but the amount of investment in Huaxia fund has exceeded 80%, far exceeding the agreed proportion.

However, the follow-up progress of the incident has not been publicly disclosed. Until this storm, the trust liquidation report provided by the whistleblower still stated that more than 80% of the fund was invested in the Huaxia fund. Indicates that in the aforementioned investorsComplaintsOver the next six years, the ratio has not changed. In this regard, "Investor Network" also sought confirmation from Chunhua Capital, the other side did not comment.

In addition, the enterprise investigation shows that the fund managed by Chunhua Capital has also been filed a total of two lawsuits by investors, and the case is currently under trial.

The Capital record of Hu Zulu

Although caught in the storm, but Hu Zulu in the capital market, still boundless scenery.

Yum China, who is owned by Chunhua Capital, is about to start the IPO process through the Hong Kong Stock Exchange, proposing to raise up to US $2.5 billion. The catering chain, which owns KFC, Pizza Hut and Little Sheep, was listed in the United States earlier. However, the success of capital operation cannot hide the unsatisfactory performance.

According to the latest report, Yum China's operating income and net profit in the first half of this year were US $3.656 billion and US $194 million, respectively, down 17.43% and 51.5% from the same period last year. On a quarterly basis, although the second quarter of this year rebounded, the operating income was US $1.902 billion, but the year-on-year decline was still 10.45%.

In 2016, Chunhua Capital and Ant Financial Services Group invested a total of US $460 million in Yum China, and Hu Zulu became chairman of Yum China. Speaking publicly about the deal, Mr Hu said the stake was a shareholder who put himself in a reliable partner position and could bring more added value.

Making more contacts has become the secret of Hu Zu's six vertical and horizontal domestic economic circles. In the fund recommendation book of Chunhua Capital, it is also emphasized that the partners have an "unparalleled CEO network", have a close relationship with many private entrepreneurs, and have global resources for cooperation with other world-class investors.

The brightest person in this network is the Ali family. After 2014, Chunhua Capital, together with BABA's Ant Group and BABA shareholder Softbank Corp. Group, jointly led the investment of eggshell apartment, Youbao online, Dazouche, Hello Travel, Paytm Mall, word-of-mouth and Yum China.

However, before making friends with the Ali system, some of the enterprises invested by Chunhua Capital have not yet been listed. Such as Guanyu battery, Junlebao dairy, second hand system, big number finance and so on, Chunhua Capital still holds shares in these companies. Some of them have entered the listing guidance period this year, and the realization of Chunhua Capital will take time.