PE recruiting restarted after a months-long pause sparked by pressure from Wall Street banks. The pause meant candidates were sharper and more experienced, insiders said. The process's familiar chaos was back, with interviews starting at 7 a.m. stretching into the night. After a roughly six-month pause, private equity's on-cycle recruiting machine roared back to life last week. The process was just as frenzied, but recruiters said the extra time produced an unexpected upside: sharper, better-prepar ...

Core Insights - Bertram Capital has promoted Chris Brown to Partner, recognizing his significant contributions to the firm since rejoining in 2019 and his previous tenure from 2010 to 2015 [1][2][3] Group 1: Promotion and Contributions - Chris Brown has been involved in 15 platform investments and over 60 add-on acquisitions, contributing to sourcing, execution, and portfolio management [2] - He currently serves on the Boards of Directors of several companies, including AFC Industries and Applied Adhesives, and has played a key role in managing investments in Flow Control Group and Solo Stove [2][3] - His promotion reflects his strong judgment, deep transaction experience, and collaborative mindset, as noted by Jeff Drazan, Managing Partner at Bertram Capital [3] Group 2: Professional Background - Prior to rejoining Bertram, Chris Brown worked in corporate development at Micron Technology, focusing on M&A transactions and corporate strategy [4] - Earlier in his career, he was part of the Syndicated and Leveraged Finance group at J.P. Morgan, where he specialized in structuring leveraged loans and high-yield bonds [4] Group 3: Company Overview - Bertram Capital is a private equity firm that targets investments in lower middle-market companies and has raised over $4.0 billion in capital commitments since its inception in 2006 [6] - The firm employs a value-creation strategy called SMBertram High-5, which includes management augmentation and operational initiatives, supported by its in-house technology team, Bertram Labs [7] - Bertram Capital V focuses on control investments in business services, consumer, and industrial sectors with EBITDA above $7.5 million, while Bertram Ignite I targets both control and non-control investments with a minimum EBITDA of $3 million [8]

Core Insights - The private equity securities industry is experiencing rapid growth in 2025, with product scale surpassing 7 trillion yuan and a significant increase in product registrations, nearly doubling from 2024, becoming the core engine of industry growth [1][2] - Nearly 90% of private equity securities products achieved positive returns, indicating a strong performance and increasing market recognition, leading to a more stable and sustainable growth trajectory for the industry [1][5] Product Registration and Strategy - A total of 12,645 private equity securities products were registered in 2025, a 99.54% increase from 6,337 in 2024, with stock strategies being the preferred choice, accounting for 65.86% of all registered products [2] - Quantitative products showed remarkable growth, with 5,617 registered, reflecting a 114.31% increase and making up 44.42% of total registrations, up from 41.68% in 2024 [2][3] Performance Metrics - Among the 9,934 private equity securities products with performance records, 8,915 achieved positive returns, resulting in a positive return rate of 89.74% and an average return rate of 25.68% [5] - Combination funds demonstrated strong performance, with 96.19% achieving positive returns and an average return rate of 18.30%, while multi-asset strategies also performed well with a 90.61% positive return rate [5] Industry Trends - The private equity securities industry is characterized by a solid core position of stock strategies, while multi-asset and derivative strategies are rapidly emerging, optimizing the strategic structure of the industry [4] - The rise of quantitative investment is becoming a strategic focus for leading institutions, with future competition expected to concentrate on specialization and refinement in niche areas [4][6]

Core Viewpoint - The private equity market in China is experiencing a strong start in 2026, highlighted by the rapid fundraising success of Shanghai Fusheng Asset, which raised 1 billion yuan in a single day for its actively managed stock private equity product, indicating a renewed interest in high-quality subjective private equity products among high-net-worth individuals [1][3]. Group 1: Market Performance and Trends - In 2025, the private equity sector saw significant performance improvements, with an average return of 32.66% across 5022 private equity securities investment funds, and a 95.02% positive return rate, marking the best annual performance in nearly five years [6]. - The average return for 71 billion-yuan private equity firms was 33.59%, with 98.59% achieving positive returns, showcasing the strong performance of leading firms in the market [6]. - The stock quantitative long strategy led the performance with an average return of 45.02%, significantly outperforming the subjective long strategy, which had an average return of 29.51% [7]. Group 2: Fundraising and Product Performance - Fusheng Asset's product, which achieved a return of 80.19% in 2025, reflects the strong demand for high-performing private equity products, with its other product, Fusheng Positive Energy No. 3, achieving a remarkable return of 668.7% since its inception in 2018 [2][3]. - The rapid fundraising success of Fusheng Asset is indicative of a broader trend where subjective private equity is regaining market favor after a period dominated by quantitative strategies [5]. Group 3: Market Environment and Capital Flow - The A-share market has shown strong performance at the beginning of 2026, with the Shanghai Composite Index reaching a ten-year high of 4121.7 points, reflecting a 7.7% increase since January 5 [4]. - The total margin financing balance exceeded 2.62 trillion yuan, marking a historical high, and the trading volume in the Shanghai and Shenzhen markets has consistently surpassed 1 trillion yuan [4]. - The private equity fundraising event is seen as a manifestation of the trend of household savings shifting towards capital markets, with an expectation of over 2 trillion yuan in new capital entering the A-share market in 2026 [4]. Group 4: Industry Growth and Strategy Diversification - The private equity industry in China has reached a record management scale of over 22 trillion yuan, with private equity securities investment funds growing to 7.01 trillion yuan, a significant increase of 34% from the previous year [8]. - The number of newly registered private equity securities investment funds exceeded 12,000 in 2025, with stock strategy funds making up 65.8% of the total, indicating a strong focus on this investment strategy [7].

Core Insights - The private equity market in China has started 2026 with a strong performance, highlighted by the rapid fundraising success of Shanghai Fusheng Asset, which raised 1 billion yuan in a single day for its actively managed stock private equity product, marking it as the first "daylight" private equity product of the year [1][3] - The overall performance of private equity funds in 2025 was exceptional, with an average return of 32.66% across 5022 funds, and a staggering 95.02% of these funds reported positive returns [6][8] - The trend indicates a shift in investor preference back towards subjective private equity strategies, as evidenced by the strong performance of Fusheng Asset and other leading firms, which have regained market favor after a period dominated by quantitative strategies [5][6] Fundraising and Market Dynamics - Fusheng Asset's product was sold out within seconds, reflecting a renewed interest from high-net-worth individuals in quality subjective private equity products amid a recovering equity market [1][3] - The Shanghai Composite Index has shown strong performance, reaching a ten-year high of 4121.7 points, contributing to increased market activity and investor confidence [4] - The total margin financing balance exceeded 2.62 trillion yuan, indicating heightened market liquidity and investor engagement [4] Performance Metrics - Fusheng Asset's flagship products have demonstrated remarkable returns, with the "Fusheng Positive Energy No. 2" achieving an 80.19% return in 2025, and the "Fusheng Positive Energy No. 3" yielding a cumulative return of 668.7% since its inception in 2018 [2][3] - The average return for large private equity firms (over 10 billion yuan) was 33.59%, with 98.59% of these firms reporting positive returns, showcasing their robust performance in the market [6][8] Strategy Trends - The private equity landscape is witnessing a strategic shift, with quantitative strategies previously dominating now facing competition from subjective strategies, which are regaining traction due to their strong performance [5][7] - The average return for quantitative long strategies was 45.02%, significantly outperforming subjective long strategies, which averaged 29.51% [7] - The number of large private equity firms has increased, with 113 firms now managing over 10 billion yuan, indicating a growing trend towards larger, more established players in the market [7][8]

Core Insights - Hopu Investment Management Co. is facing challenges with leadership changes and fundraising, leading to concerns among investors like Temasek Holdings and GIC Pte [1][2][5] - The firm is preparing to raise a new fund of $1.5 billion to $2 billion in 2026 under the leadership of Gunther Hamm, the son-in-law of founder Fang Fenglei [2][29] - The private equity landscape in Asia is becoming increasingly difficult, with many investors hesitant to commit new capital due to past losses and geopolitical risks [5][29] Leadership and Management - Fang Fenglei, the founder, is known for his relationship-based approach and has been a significant figure in China's investment landscape for decades [6] - Gunther Hamm, who has a more Western-style management approach, has faced internal tensions as he takes over leadership responsibilities [7][9] - The firm has experienced significant turnover in its senior leadership, with original managers of its flagship funds departing [18][25] Fund Performance - Hopu's last flagship fund, Fund III, raised $2.63 billion in 2018 but has delivered mediocre returns, generating about 1.25 times its capital as of March 2025 [4][14] - Fund II, which closed in 2014, has returned over 60% of investors' cash but has underperformed, largely due to a $310 million investment in New Age African Global Energy Ltd. that has been mostly written off [20][21] - The firm has not made significant new investments since mid-2022, which Fang argues was a prudent decision given market volatility [4][12] Investment Strategy and Future Plans - Hopu is focusing on returning capital to investors from existing funds, with a goal of distributing 66% of Fund III's investments by the end of 2025 [15][13] - The firm is shifting its strategy to position Fund IV as an Asia fund that includes China, rather than being solely China-focused [29] - Hopu plans to establish its headquarters in Singapore and is awaiting regulatory approval for a license [29] Market Context - Global asset allocators are reducing their exposure to China due to concerns over economic growth and geopolitical risks, impacting fundraising efforts for private equity firms [5] - The competitive landscape for private equity in Asia is challenging, with many firms facing similar issues of investor hesitance and performance concerns [2][5]

Core Viewpoint - In December 2025, the Asset Management Association of China approved the registration of 8 new private equity and venture capital fund managers, including 6 state-owned and 2 market-oriented institutions [5][6]. Group 1: Fund Managers Overview - Beijing Hairuo Private Fund Management Co., Ltd. was established on August 7, 2025, with a registered capital of 10 million RMB, primarily owned by individuals and a state-owned enterprise [7]. - Guoxin Chuantou Private Fund Management (Beijing) Co., Ltd. was established on September 30, 2025, with a registered capital of 100 million RMB, focusing on green development projects for central enterprises [7]. - Yangzhou Chuantou Private Fund Management Co., Ltd. was established on September 19, 2024, with a registered capital of 15 million RMB, controlled by the Yangzhou Municipal Government [8]. - Ningbo Yongyuan Private Fund Management Co., Ltd. was established on July 29, 2025, with a registered capital of 20 million RMB, operating under a state-owned investment group [8]. - Shanghai Electric Private Fund Management Co., Ltd. was established on October 10, 2022, with a registered capital of 10 million RMB, serving as an investment platform for Shanghai Electric Group [9]. - Changzhou Hengsheng Private Fund Management Co., Ltd. was established on April 15, 2025, with a registered capital of 20 million RMB, focusing on smart manufacturing and digital economy [9]. - Guangdong Hengqin Helium Private Fund Management Co., Ltd. was established on April 15, 2025, with a registered capital of 10 million RMB, primarily owned by individuals [9]. - General Technology BRICS (Xiamen) Private Fund Management Co., Ltd. was established on February 5, 2024, with a registered capital of 50 million RMB, aiming to establish a technology innovation fund [9]. Group 2: Registration and Capital Analysis - Among the 8 newly registered fund managers, 7 have a paid-in capital ratio of 100%, while General Technology BRICS has a lower ratio of 40% [14][15]. - The average time taken for the registration process was 87 days, with the fastest being General Technology BRICS at 21 days and the slowest being Guangdong Hengqin Helium at 194 days [16][17]. Group 3: Legal Services - A total of 7 law firms provided services for the registration of the new private fund managers, with Beijing Deheng Law Firm serving 2 of the new registrants [18][19].

Core Insights - 26North and TJC have invested $1 billion in Bruin Capital, a sports-focused investment firm founded by George Pyne [1][2] - Bruin Capital has raised over $2 billion since its inception, operating as a holding company that raises capital for individual platforms rather than having a dedicated fund [2] - The new investment will be used to target middle market sports businesses globally [3] Company Overview - Bruin Capital was founded in 2015 and is one of the first private equity firms to focus exclusively on the sports industry [4] - The firm has invested in over 50 companies and has launched various initiatives, including a sports agency and investments in technology related to sports [4] - George Pyne, the founder, has a background as a former COO of NASCAR and ex-president of IMG [4] Investment Context - The investment from 26North comes as the firm is fundraising for its debut private equity fund, which has exceeded its initial target of $4 billion, raising $4.3 billion [6] - Harris, a notable figure in private equity, co-founded Apollo Global Management and has significant stakes in sports franchises [5]

Core Insights - Blackstone's energy transition arm has acquired Alliance Technical Group (ATG) from Morgan Stanley Capital Partners, enhancing ATG's capabilities in environmental testing and compliance services [4][5] - ATG, founded in 2000, operates over 60 offices in the U.S. and Canada, providing solutions for emissions reduction, waste abatement, and environmental consulting across various industries [3][5] - Morgan Stanley's investment in ATG has significantly scaled the company, positioning it as a leader in emissions testing and monitoring [4][5] Company Overview - ATG provides a range of services including compliance, auditing, reporting guidance, and on-site testing and emissions monitoring to help companies meet sustainability goals [5] - The company serves clients in diverse sectors such as building and construction, energy and power, food and consumer goods, oil and gas, and data centers [3] Investment and Growth - Morgan Stanley's private equity division acquired a controlling interest in ATG in 2021, which has facilitated substantial growth for the company [4] - Blackstone's acquisition aligns with its strategy of investing in energy transition-focused companies, leveraging its scale and resources to support ATG's growth in the power, energy, and industrial sectors [4][5]

Core Insights - The private markets are experiencing a shift towards larger firms, with a focus on differentiation and scale for survival [2] - Private equity is expected to see a 20% increase in transaction volume in 2026 compared to 2025, driven by favorable market conditions [3] - Venture capital is consolidating around mega-funds and niche specialists, leaving generalist firms at risk [4] Private Equity - In 2026, private equity firms will prioritize capital return over capital growth, leading to increased M&A and IPO activity [3] - The decline in interest rates is expected to enhance liquidity and market activity, with a more stable environment for long-term value creation [3] - Sectors with defensive demand and operational upside will attract more capital, with returns driven by execution rather than multiple expansion [3] Venture Capital - Major venture firms are expected to launch mutual funds to gather more assets, capitalizing on regulatory changes [4] - The "generalist middle" is collapsing, with capital consolidating around larger funds and niche specialists [4] - LPs will have increased negotiating power due to a smaller number of active allocators, impacting fundraising for emerging managers [5] Startups - Many AI startups are facing challenges due to market saturation and price wars, with few expected to succeed [6] - Founders are advised to focus on operational discipline and fundamentals as the market resets [6] - A significant increase in startup formation and product releases is anticipated, driven by easier access to technology [6] Recent Deals - xAI raised $20 billion in Series E funding, indicating strong investor interest in AI [8] - Hg is acquiring OneStream for approximately $6.4 billion, highlighting ongoing consolidation in the private equity space [10] - PicPay filed for an IPO on Nasdaq, reporting $1.7 billion in revenue for the year ending September 30 [16] Funds - BV Investment Partners raised $2.5 billion for its seventh fund, focusing on business services and IT sectors [17]