Core Viewpoint - The article discusses the challenges and requirements for General Partners (GPs) in fundraising, emphasizing that the era of simply presenting a PowerPoint to raise funds is over. It outlines the preferences of market-oriented Limited Partners (LPs) and the importance of establishing trust through direct investment projects before considering blind pool funds [3][10]. Fundraising Challenges - GPs often seek assistance in connecting with market-oriented LPs, particularly when they have secured government funding but lack the remaining 10-20% from market sources. The difficulty in fundraising is highlighted, especially for market-oriented funds, which have become scarce [5]. Key Preferences of Market-oriented LPs 1. **Fund Size** - Market-oriented LPs, particularly family offices, generally do not invest in funds larger than 1 billion, with some preferring funds not exceeding 500 million. Larger fund sizes are perceived to negatively impact returns and increase the likelihood of suboptimal project selection due to investment deadlines [6]. 2. **GP Co-investment** - There is a growing expectation for GPs to invest 5-20% of their own capital in the fund. This alignment of interests is crucial for LPs, as it demonstrates the GP's confidence in their own fund. If GPs do not invest, it raises concerns about their commitment and the potential for moral hazard [7]. 3. **Government Funding Proportion** - If a fund has more than 30% of its capital from government sources, many family offices are likely to avoid investing. The perception is that high government involvement may not align with the financial return objectives of market-oriented LPs [8]. 4. **Performance History** - Historical performance, particularly the DPI (Distributions to Paid-In capital) of blind pool funds established before 2018, is a critical factor for LPs. Funds that do not demonstrate strong past performance are unlikely to attract market-oriented capital [9]. 5. **Trust Building through Direct Investments** - Many family offices now require GPs to provide 1-2 direct investment projects as a means to assess the GP's project selection capabilities and the potential for a smooth long-term partnership. This trust-building process can take 1-2 years before considering investments in blind pool funds [10]. Summary of Key Points - Fund size should not exceed 1 billion, ideally between 100-300 million [12] - GP co-investment should be in the range of 5-20% [12] - Government funding should not exceed 30% of the total fund [12] - Historical blind pool funds (pre-2018) should have a DPI above 1 [12] - GPs should provide direct investment projects to establish trust before LP investment [12]

Core Viewpoint - Increasing attention from primary market institutions towards the secondary market due to challenges in fundraising and investment exits [1][4][10] Group 1: Market Trends - Many primary market investors are now actively participating in the secondary market, with a notable increase in the number of General Partners (GPs) engaging in this strategy [3][11] - The liquidity of the secondary market and the potential for higher short-term returns are key reasons for this shift, especially as fundraising in the primary market becomes increasingly difficult [4][5] Group 2: Fundraising Challenges - In 2024, the number of newly established private equity and venture capital funds dropped by 44.1% year-on-year, with total fundraising amounting to 412.14 billion yuan, a decrease of nearly 40% compared to 2023 [5] - The average size of individual funds has fallen to 133.8 million yuan, marking a ten-year low, indicating significant challenges in the fundraising environment [5] Group 3: Management and Regulatory Landscape - In 2024, only 116 private equity fund managers completed registration, while 928 institutions were deregistered, highlighting a significant contraction in the number of active fund managers [6][7] - Over 100 private equity and venture capital fund managers have been deregistered due to not having any managed funds for 12 months, emphasizing the critical nature of fundraising for survival in the industry [7][8] Group 4: Investment Environment - The investment landscape has shifted away from the rapid valuation increases seen in the internet and model innovation era, with a focus now on hard technology requiring patience for longer-term returns [9][10] - Many investment institutions are currently facing a "zero investment" scenario, not due to a lack of desire to invest, but because of fierce competition and high valuations in strategic emerging industries [10]