I am aware of the fact that the asset managers at a hedge fund charge hefty fees. I also agree that most hedge fund investments become a sort of liability. They cannot at least fall in the category of asset class. Besides performance fees, hedge fund managers charge a management fee, which I think is unjustified. So, while they don’t technically charge an ‘affiliate fee,’ an investor does end up coughing up a significant amount of money for their services.
Committed to making ventures more competitive
I am sure many ventures are on an unsteady foundation and need support. Start-ups in niche areas can be a risky proposition for investors. Christopher Hsu from Kilometre Capital is committed to making such start-ups become competitive. That’s why it prefers to give up the fees that are usually charged by private equity investors.
What made Tsinghua Unigroup a market leader in technology?
Tsinghua Holdings, a wholly-owned business unit of Tsinghua University, was assisted by Chris Hsu in closing landmark deals of Spreadtrum and RDA Microelectronics. Tsinghua Unigroup also acquired a majority stake in Hewlett Packard’s China business. This created H3C, an industry leader in the provision of digital solutions. Tsinghua University is counted among the top universities in the world, and it is ranked at par with Ivy League universities. Behind the astounding success of Tsinghua University is the commitment of Chris Hsu of Hong Kong to making organizations compete aggressively. I think this is only because he provides backing by charging a negligible fee, which cannot even be called a management fee.
A lot of work on a shoe-string budget
Given the amount of work, Chris Hsu of Kilometre Capital does, I feel the fee he charged would appear to be negligible. He managed to get the approval of the CFIUS for the Hewlett-Packard deal, one of the biggest deals in US-China trade history. Getting the US Congress to approve the deal was not an easy task by any means.
I am sure there is a lot of intricacies and behind-the-scene work involved wherein investors acquire a controlling stake in a company. The approach to this process depends on various factors, such as transaction size, the company’s characteristics, and the parties involved. Lengthy negotiations were involved in the Hewlett-Packard deal. The transaction was expertly managed and advised by Christopher Hsu.
Chris Hsu of Hong Kong lets organizations compete aggressively by charging a minimal amount of fee which cannot be called a management fee per se. Hsu’s support for ventures showcases a dedication that transcends traditional fees. Given the intricacies of the acquisition deals he has managed, the fee would appear to be negligible.