Core Viewpoint - The investment institutions, particularly small and medium-sized General Partners (GPs), are adopting a "lightweight" operational strategy to reduce costs and adapt to a challenging fundraising environment [3][6][10]. Group 1: Cost-Saving Strategies - Many small and medium-sized GPs are outsourcing non-core functions such as finance, legal, and investor relations to lower operational expenses [3]. - There is a trend of remote communication and online research instead of on-site due diligence to save travel budgets [3]. - Some GPs are collaborating to share project sources and investment teams, which helps in maintaining project development capabilities while distributing due diligence and management costs [3][4]. Group 2: Team Structure and Office Space - A significant portion of investment teams in small institutions consists of part-time members, which is a cost-effective choice given the current market conditions [4]. - Many GPs are simplifying their organizational structures, reducing office space, and moving to co-working spaces to cut fixed costs [4][5]. - The shift to shared office spaces has not negatively impacted business operations, and many institutions report normal business continuity despite these changes [5]. Group 3: Investment Pace and Fundraising Challenges - A slowdown in investment pace, focusing on managing existing projects, and extending the capital usage cycle have become common strategies among many GPs [7]. - The fundraising environment remains under pressure, with a significant decline in the number of new private equity and venture capital funds established in 2024, down 44.1% compared to the previous year [8]. - The average fund size has decreased to 1.338 billion yuan, marking a ten-year low, indicating a challenging fundraising landscape [8]. Group 4: Management Fee Adjustments - The management fee structure is becoming stricter, with new regulations limiting fees to a maximum of 2% of actual investment amounts [9]. - There is a noticeable downward trend in management fees, with many funds now charging between 1% and 1.5% [10]. - The shift towards a "light asset, heavy performance" model is evident, as GPs focus on cost reduction, structural optimization, and core investment capabilities to navigate the competitive landscape [10].