CUHK Lives and Legends

28 B eing a private equity investor, Kelvin Wu  is the founder and chairman of AID Partners Capital Ltd (AID). The business of private equity funds, simply put, is buying or investing in non-listed companies with a view to reselling them at a good price. Kelvin’s most celebrated feat was the acquisition of HMV’s businesses in Hong Kong and Singapore in 2013. Already teetering on the brink of bankruptcy then, the century-old music chain was brought back to life. At a time when most people were not hopeful of a bright future for the music industry, why did he have such foresight? ‘I didn’t have the foresight, nor was I optimistic about the future of the music industry,’ with sideburns and beard and wearing an indigo suit and a pair of zebra-striped trainers, he responded humorously. ‘I was only bullish about the strong brand of HMV and its wide customer base, seeing lots of room for manoeuvre.’ Afterwards HMV went on to undergo a transformation with its product lines expanded from CDs and DVDs to cover audio and visual equipment, toys and vinyl records, and eventually food and beverages. The chain’s valuation rocketed by almost tenfold in four to five years. For Kelvin, a project does not have to be making money at the time of acquisition. The target he sets himself is to turn profitable within 24 months after the takeover. The secret of success lies in the axiom ‘no pain, no gain’. ‘Most private equity funds would take a totally hands-off approach after buying a company, just looking to make a quick buck by the price difference in purchasing and selling. AID, on the contrary, would get deeply involved in the company’s operation and management.’ Take HMV for example, AID set about streamlining its structure, reducing the number of back office staff from over 40 to just six. ‘Lu Xun said he would write while others spent time drinking coffee. I use the time to learn and work while others hobnob over drinks.’ His company has also invested in Legendary Pictures, the film company which produced  The Dark Knight Trilogy ,  Inception , and  Interstellar . Notwithstanding box office success being an invariably welcome boon to investors, Kelvin said what he valued the most in a film was the philosophy or life-affirming message it conveyed. ‘I was particularly happy with  Interstellar , a sci-fi film steeped in Buddhist philosophy. So very esoteric. The traditional Chinese view of literature is that it should spread the Way. I think films should do the same too,’ he said, stroking the beige malas on his wrist. Entertainment business aside, AID has also invested heavily in tech companies. In addition to Zoox, which develops driverless- car technology to address traffic congestion in big cities, these companies include Dave.com, a c c Kelvin Wu’s most celebrated feat was the acquisition of HMV and bringing the century-old music chain back to life