Enrique Yuchengco Gonzalez (EG to his friends and EYG at the office), was only 27 years old when his company IPVG Corp. was listed in the Philippine Stock Exchange.
EG took over the company in 2004 when it was still named MBF Inc. (formerly Radio Wealth Finance), owned by a Malaysian conglomerate. Via backdoor listing, it was renamed IPVG which stands for Intellectual Property Ventures Group.
Since then, EG has listed two more companies in the PSE, IP Converge Data Center which is the information technology and telecommunications subsidiary of IPVG, and IP E-Games, the online gaming unit of IPVG that bought ePLDT’s 75 percent stake in Digital Paradise Inc. which operates Netopia.
EG, president and CEO of IPVG, just turned 35. But for someone who has been in business since he was in his teens, EG has had a wealth of experience running his own business and forging multi-million dollar deals. But slowing down his pace is farthest from his mind. In fact, 2012 is going to be the biggest year for IPVG, if he is able to achieve what he has set out to do.
EG shares with Spare Time some of his very valuable “spare time” in this interview:
You started out as an investment banker. Why the shift to the Internet space?
EYG: I first started out as a stock broker/trader at the age of 13. I started my first Internet venture after college before deciding to move to the Philippines. My vision at the time was to accelerate the adoption of the Internet in the Philippines, and to create a thriving Internet sector. Looking back, I can say I’ve achieved this.
I have also sat on the board of American Orient Capital Partners, a regional investment bank formerly a Joint Venture with AIG. My exposure to the investment banking world has allowed me to develop relationships in that sector, and enabled me to have access to capital for my entrepreneurial endeavors.
How has your experience in investment banking helped you with your present endeavors?
Investment banking requires rigorous and disciplined process of analyzing companies, doing due diligence, and spotting the good companies from the mediocre or bad. I also learned how to raise money very early on in my career. This has been of tremendous value to myself as an entrepreneur, and to my businesses.
What is your prediction on the future of online gaming in the country?
Online games will continue to grow and will remain the dominant form of how people play video games. It will be delivered through the cloud and across multiple channels and devices (computers, mobile phones, tablets, etc). The industry is expected to reach 20 million gamers by 2015, and annual revenues of $40 million.
What is your goal for IPVG in terms of its future direction?
IPVG is now a publicly-listed shell. Our new holding company is called “IP Ventures Inc” which owns all of our tech interests including two listed companies (ticker symbol “cloud” and “EG”.) Softbank recently acquired a stake in our new holding company, IP Ventures Inc.
The future of IPVG (the listed shell) is not in technology. We have big plans for the company, hence our recent board approval to issue 2.8 billion shares at P1 per share. We recently concluded the issuance of 400 million shares at P1 per share. All this capital will be used to acquire a very attractive and strategic business. We will make the necessary disclosure at the appropriate time. The magnitude of numbers involved show we are looking at a large acquisition.
What do you do in your spare time?
(Laughter) Spare time? I don’t know the meaning of the word. I’m 24x7.
When I do have spare time I work-out (very hard and intense), and I spend time with my friends. I also enjoy traveling, good food and good wine.
What sport do you play? How good are you at it?
I do mixed martial arts (MMA). I actually qualified for URCC when I won during the qualifiers, and have been an avid martial artist since I was eight. So I did reach a competitive level. I love martial arts, and any form of fighting (boxing, kick boxing, wrestling, etc). All other sports pale in comparison. I was captain of the wrestling team in high school.
Do you collect anything? Please tell us about it?
I used to collect comic books. It must be the geek in me. I also built up an extensive stamp collection. I’ve recently gotten into collecting antique books, and contemporary art. I recently acquired a beautiful piece (a framed AK-47) from Nikki Luna.
How is a typical workday for you? How and where do you spend your weekends?
I work from 9am-2am, Monday to Thursday. On Fridays, I end work by 9pm. I try to work out at 6pm as a mid-day break. My schedule is extremely intense and requires me to be in top shape. My weekends are either spent out of town, or on particularly busy weeks, we schedule management meetings on the weekends as our weekdays are usually absolutely full. I also spend quite a bit of time traveling overseas to meet with our partners (which are now extensive and across several countries, and continents).
What was the last movie you’ve watched? Last book that you’ve read?
Last movie I watched was Mission Impossible (Ghost Protocol). I haven’t had time to go back to the movie theater since then. Last book I’ve read is the “History and Culture of Caffeine”. I’ve recently entered the coffee business and have been reading books on coffee. (In the Philippines, the franchising rights for operating Highlands Coffee were granted to IP Ventures Inc., which operates the largest chain of Internet cafés in the Philippines with 116 outlets under the brand Netopia. Highlands Coffee serves Vietnamese coffee and light meals in 54 coffee shops in Vietnam. It also sells packaged coffee through retail outlets. Jollibee Foods Corp., through wholly owned Jollibee Worldwide Pte. Ltd. just acquired 50 percent of the business of SuperFoods Group, which operates 56 Highlands Coffee stores in Vietnam.)
Any pet peeves?
Incompetence, and laziness. (The opposite of hard-working, and competent). It is very important to me that my team shows the same level or at least tries to achieve the same level and commitment that I do.
Any business personality you admire?
I admire Warren Buffett and Bill Gates because of their generosity and commitment in using their wealth to make the World a better place. We need to develop a stronger culture of giving here in the Philippines. It is unprecedented here to see someone give half their wealth or 80 percent of their wealth to a charitable cause. For this reason I admire Warren and Bill.
You studied international politics in college. Did it ever enter your mind to enter local politics? Why/Why not?
Yes, I had considered it when I was in college but threw my hat into the entrepreneurial world instead. In the future if I am called to serve the country, I would certainly do so if I believed I could make a positive difference in people’s lives in such a position.
Do you go for any particular brand of clothes/shoes?
Contrary to what might be popular belief, I am not brand conscious! But I do have to dress the part especially when I meet with foreign partners, investors, and government leaders. Zegna suits are well tailored and affordable.
How do you keep yourself fit?
I have a very intense work-out regimen. I’ve had to bring the intensity down as I get older. I used to do MMA training. Now I do plyometrics.
How do you deal with stress?
Working out and a positive mind-set is key to managing a high-stress job.
What is your expectation for IPVG this year?
If I achieve what I have set out to do, this will be IPVG’s absolute biggest year EVER!
If you are not running IPVG, what would you be doing now?
I am an entrepreneur. If not IPVG, I will always be running my own company.
What is your management style? How did your parents influence your business skills/style?
My management style adapts to the maturity and capability of my management team. I now have over 12 companies I’ve invested in with over 3,500 employees. Young companies with young management require a more authoritarian style of management. Mature companies with capable management require a more ‘management by objective’ style of management.
The importance of management style is that the style utilized is the one that ensures highest probability of success given the state and condition of the management and company in question.
My parents are both business-minded, and business is part of dinner table topic. This has translated to business being somewhat of second nature to me.