Core Viewpoint - The trend of extending the duration of government-guided funds is emerging in 2025, which may significantly impact the venture capital industry by fostering patient capital and altering the fundraising, investment, and exit ecosystem [2][3][9]. Group 1: Extension of Fund Duration - Historically, RMB venture capital funds had a lifespan of no more than 10 years, often only 7-8 years, limiting their ability to support technology projects through their growth phases [2]. - In 2025, many newly established guiding funds in regions like Beijing, Shanghai, Jiangsu, and Guangdong have durations exceeding 10 years, with some reaching up to 20 years [2][3]. - Existing guiding funds are also modifying management rules to extend their durations, with some second-phase funds extending their terms compared to the first phase [2][3]. Group 2: Impact on Sub-Funds - The extension of the main fund's duration is being reflected in sub-funds, with many sub-funds also seeing their durations extended by 2-3 years [3][4]. - However, the actual operational time for sub-funds remains limited due to the investment period typically set at 5 years, leading to a practical exit period of only a few years [4][6]. - The balance between fund duration and the need for timely exits remains a concern, as overly long durations could lead to complacency among sub-funds [4]. Group 3: Investment Strategies and LP Requirements - Despite the extended duration of main funds, the investment periods for sub-funds have not changed significantly, with most set at 3-4 years [6]. - Limited Partners (LPs) are increasingly demanding strict DPI (Distributions to Paid-In) requirements, emphasizing the need for quicker returns on investments [6][7]. - The focus on a balanced portfolio that includes both quick-return and long-term projects is becoming more pronounced in the industry [6]. Group 4: Industry Sentiment and Future Challenges - The extension of fund durations is viewed positively, fostering a more patient investment mindset within the industry [9][10]. - However, the challenge of ensuring successful exits remains critical, as unresolved exit issues could lead to a backlog of projects [9][10]. - The natural conflict between long-term fund durations and the short-term focus of local officials may pose ongoing challenges for the effective management of these funds [9].
深度丨“长续航版”政府引导基金频出,创投“募投管退”更从容
证券时报·2025-08-15 02:27