Chapter 52: The Investment Threshold of Private Equity Funds

"Alright, but I still advise you not to be too optimistic. Heroes exist only in movies; we need to be more realistic."

Just as Carter couldn't dissuade Goodman, Goodman couldn't make Carter lose trust in Volcker either. After a brief reminder, the conversation shifted from long-term planning to trivial matters:

"Oh, by the way, I have a package that was sent from New York. I'll get it for you later. And why did you buy so many folding chairs? They're all piled up in the backyard and hardly ever get used."

"Let's leave them for now. They'll come in handy eventually. Speaking of which, I was thinking on my way here that providing loans to Black people is becoming a trend. However, there may be a need for some lectures or seminars to address the distrust between Black people and us. It might come in handy later."

When talking about the folding chairs, Carter thought of the Black father and son who bought the barbecue grill. It wasn't urgent to open up lending to the Black community now, but it was necessary to start influencing subtly. Otherwise, when it came time to implement, Goodman, the executor, might oppose it.

"Your mind works in mysterious ways, Carter. Do you have a hero complex, or do you want to be a hero? The White hero for Black people?"

Can a 16-year-old suffer from 'second adolescence'? Goodman recalled and found that it might be possible. Faced with Carter's adolescent behavior, what could he do but sigh deeply?

"Never mind, I'll go get your package. Your ideas should wait a couple of years. When you've matured a bit."

Shaking his head, Goodman left the office, lamenting Carter's naivety. Carter didn't bother to explain further; brainwashing Goodman would be a process. It wasn't easy to get an old White man like Goodman to accept new perspectives, especially with the generation gap and different understandings of race, community, and even the country.

Carter didn't like Black people, but he also believed in Confucius' philosophy of "education without discrimination." He could accept progress and culture in the Black community if there were quality individuals. However, for 'purebred' Anglos like Goodman, it was different. They were inherently exclusionary, and during Goodman's formative years, it was legal to discriminate against Black people. Discrimination against Black people was justified in their eyes.

"Here's your package. I left it in my office since no one was in yours."

"Thanks."

Goodman's voice interrupted Carter's thoughts. After receiving the package, Carter's attention turned to it. Without any surprise, it contained the subscription certificate for six million dollars in the quantum fund. Attached were the subscription agreement, specifying when Carter subscribed for how many fund shares, the fund's open period, the period during which funds are raised, and the closed period during which the fund operates, as well as the duration period and other information.

According to the rules of the Quantum Fund, the fund's closed period was eight months. This meant that during the eight months after the fundraising ended, neither new investments nor withdrawals by investors like Carter were allowed. Investors had to wait until the expiration of the eight-month period to choose to continue subscribing or withdraw their funds.

This information was about the basic operating procedures of a private equity fund, nothing much to say about it. Carter had seen it when he signed the agreement. At this moment, after a cursory glance, his attention shifted to another place—the complete set of identity documents.

This was interesting because ordinary people rarely encountered dual identities. This set of identity information wasn't Carter's new identity; it was simply the identity information of a Panamanian businessman named Memphis, who invested in the Quantum Fund. There was no connection between Carter and this Mr. Memphis.

The signature on the fund subscription agreement was also from this Mr. Memphis. Looking at the brand-new Panamanian passport with a stranger's face, the power of sarcasm in Carter's soul started to rise again.

In China of the future, investing in private equity funds had high barriers to entry. Of course, it was the same in the United States. It wasn't easy for ordinary citizens to engage in activities such as transferring funds overseas, obtaining new offshore identities, or acting as proxies.

But compared to the hidden barriers in the United States, the investment threshold in China was much clearer. Private equity fund managers in future China could only raise funds from legally recognized qualified investors; raising funds from ordinary people was not allowed.

The criteria for qualified investors were also very clear, with two common standards: institutions with a net worth of no less than 10 million; individuals with financial assets of no less than 3 million or annual personal income of no less than 500,000 in the last three years.

In simple terms, the country only allowed people with certain risk identification and risk-bearing capabilities to invest in private equity funds. Don't think that the country is obstructing you from making money. On the contrary, it's a way for the country to protect ordinary citizens. Just imagine, what would happen to an ordinary person with an annual income of only $100,000 who rashly invests in high-risk, high-leverage private equity funds.

During the fund's closed period, you can't withdraw your money, and if anything unexpected happens, even if the fund doesn't make or lose money, you can't do anything if there's a sudden illness or accident.

Carter had to admit that the United States was protecting the interests of ordinary citizens in this regard. However, compared to the clear and responsible approach in future China, the American approach was distinctly American. Investments from overseas investors had nothing to do with our citizens; don't look for me if something goes wrong. Even if you do, I won't acknowledge it.

Besides these two main documents, there was also a letter from Julian. He inquired about Carter's journey and recent situation, wished him well, and that was it. There was nothing important in the letter, but it made Carter feel warm to read it.

However, seeing the word 'journey' in the letter, Carter suddenly remembered something. He immediately picked up the phone from the table and called Julian. Georgia and New York were both in the eastern United States, and their schedules were based on Eastern Time. Since it was working hours for him, it should be the same for Julian.

"Hey, Julian, I'm home now. I received your letter; everything's fine, thank you very much for your concern. I didn't expect you to remember me."

"Haha, how could I forget you, Mr. Young Millionaire? Did you enjoy your journey?"

"It was fine. I discovered a company in Seattle that I think has great potential."

For Julian, who had helped him earn his first bucket of gold and introduced him to big shots like Soros, Carter didn't mind sharing Microsoft's information with him, letting this struggling stockbroker earn some money too.

Carter understood one thing very well—even though he was a time traveler, he couldn't eat alone. Those who ate alone wouldn't survive long. Besides, it wasn't for nothing. Julian's connections might help him profit more from Microsoft. As the saying goes, besides money, he had nothing. Oh no, he didn't even have money now. The fund is closed.

"Oh? Is that so? I'm interested now. What are they called?"

"Microsoft. It's a combination of 'microcomputer' and 'software.' I like to call it Micro-Soft."

"Alright, I'll look into this company later."

"Great. Oh, by the way, Julian, I called you because I have a question. Do you know about Yum! Brands? It's in the food industry, the Kentucky Fried Chicken chain."