In Depth: How an Elite Chinese Alumni Network’s U.S. Real Estate Dream Collapsed
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Zhang Renkai (left), Liu Yaojun and Johnny Lu
On Sept. 20, Zhang Renkai, chairman of Giant Tiger Capital, stood before the new class of students at a college within his alma mater, the prestigious Renmin University of China (RUC). A distinguished alumnus from the class of 1994, he confidently addressed the next generation.
What few in the audience could have known was that within a month, Zhang would be at the center of a sprawling investment dispute stretching from Beijing to Los Angeles. The alleged victims: a group of high-net-worth investors, many of them fellow RUC alumni, who had entrusted millions to a real estate deal that now lay in ruins.
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- Over 60 Renmin University alumni invested $12.9 million in a California luxury apartment project, managed by fellow alumni, which collapsed amid alleged misappropriation and loan defaults.
- Most funds were diverted to speculative investments and personal debts; less than two months after receipt, $9.4 million was withdrawn by project managers, and later high-interest loans deepened losses.
- Investors discovered the deception in 2024, sued key figures, and are pursuing compensation; the project's bankruptcy plan was implemented in August 2024.
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Who’s Who
- Giant Tiger Capital
- Giant Tiger Capital, chaired by Zhang Renkai, served as the fundraising arm in China for the "Casa Playa Apartment Project." Zhang, a Renmin University alumnus, funneled capital from an alumni network into a special-purpose vehicle, "RUC14 Playa," which then invested in TA Partners Apartment Fund II. The firm earned a $516,000 commission for its role.
- Haitong Securities
- Liu Yaojun, a Renmin University alumnus and partner at TA Partners, previously worked in the investment banking arm of Haitong Securities. During his time there, he gained experience working on multiple Initial Public Offerings (IPOs).
- Jingtian & Gongcheng
- Jingtian & Gongcheng is a Chinese law firm where Liu Yaojun worked as a lawyer. Liu, who also has a master's degree in economic law from Renmin University of China, worked on multiple IPOs during his time at Haitong Securities' investment banking arm before joining Jingtian & Gongcheng.
- Global Law Office
- Global Law Office is a prestigious firm where Liu Yaojun, a Renmin University alumnus and veteran of Haitong Securities, worked as a lawyer. His resume, including his time at Global Law Office, enhanced his credibility in the eyes of investors.
- TA Partners
- TA Partners is a US-based management firm co-owned by Renmin University alumni Liu Yaojun and Johnny Lu. They were responsible for developing the Casa Playa Apartment Project in Southern California. The company faced bankruptcy after misappropriating investor funds, defaulting on loans, and making risky investments in SPACs.
- Partners Capital Solutions
- In June 2019, TA Partners obtained a $13.5 million loan from Partners Capital Solutions, using the Playa land as collateral. This loan was refinanced in January 2021 with a $13.55 million loan from Preferred Bank, indicating that the asset was already encumbered when RUC alumni invested in the project in March 2021.
- Preferred Bank
- Preferred Bank provided two loans to TA Partners regarding the Casa Playa Apartment Project. The first, for $13.55 million, was given in January 2021, and the second, for $5.5 million, was issued in October 2021.
- Hankey Capital
- Hankey Capital is a private lender that provided a new loan of $27.5 million to TA Partners in December 2021. This loan was taken after the RUC alumni had invested their money. Liu admitted that their "greed ultimately led to the Hankey loan default."
- Fintech Ecosystem Development Corp
- Fintech Ecosystem Development Corp was a Nasdaq-listed SPAC (Special Purpose Acquisition Company) in which TA Partners gained equity through an investment in REVO FAST. TA Partners aimed to inject their real estate projects into this SPAC, but the plan was thwarted by the company's board.
- INDIEV
- INDIEV is an electric vehicle startup that received a $3 million loan from TA Partners. This investment was part of a desperate attempt by TA Partners to facilitate a merger between a SPAC (Fintech Ecosystem Development Corp.) and INDIEV. Unfortunately, the startup went bankrupt, resulting in a total loss of the $3 million investment.
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What Happened When
- Spring 2021：
- The Casa Playa Apartment Project investment opportunity circulated within the RUC alumni community and fundraising began.
- March 2021：
- RUC alumni invested $12.9 million into RUC14 Playa, which was then invested in TA Fund II.
- Less than two months after March 2021：
- Liu and Lu withdrew $9.4 million, cashing out their personal investments from TA Fund II.
- October 2021：
- Liu and Lu secured an additional $5.5 million loan from Preferred Bank.
- December 2021：
- Liu and Lu secured a $27.5 million loan from Hankey Capital.
- By October 2022：
- Casa Playa project showed no signs of progress and RUC14 Playa investors requested to withdraw their capital, but were denied.
- May 2023：
- TA Partners, needing $5 million for insurance payments on two Irvine projects, sought financing from Varde and pledged equity, including Playa.
- January 2024：
- An investor discovered that Liu and Lu had defaulted on a $200 million construction loan, prompting an investigation.
- February 13, 2024：
- Liu Yaojun wrote a confession letter to the investors of RUC14 Playa, admitting to loan defaults and mismanagement.
- As of August 25, 2025：
- U.S. Bankruptcy Court noted that the bankruptcy plan for TA Fund II had been fully implemented.
- August 28, 2025：
- A legal opinion stated the Playa property had never been developed and there were no plans for development.
- September 20, 2025：
- Zhang Renkai addressed new students at Renmin University of China.
- By October 2025：
- Planned exit date for the Casa Playa project arrived; the property remained undeveloped, heavily in debt, and bankrupt.
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