Core Viewpoint - The recent surge in the Hong Kong IPO market and steady progress in A-share listings, particularly among leading technology companies on the Sci-Tech Innovation Board, has reignited interest in specialized funds among investors [2][4]. Group 1: Market Dynamics - The popularity of specialized funds has increased due to the underperformance of blind pool funds and a growing focus on underlying assets by LPs [2][3]. - Specialized funds are characterized by smaller scales and targeted investments, making them more appealing to LPs seeking lower commitment amounts and higher certainty [2][6][7]. - The IPO market has seen significant activity, with a total of 191 IPOs in A-shares and Hong Kong from January to November 2025, involving 1,114 investment institutions and an average IRR of 47.14% [4]. Group 2: Characteristics of Specialized Funds - Specialized funds emphasize certainty by pre-defining investment projects, primarily targeting mature companies with growth potential [6]. - They provide LPs with more control and project selection options compared to blind pool funds, which enhances decision-making participation [6]. - The establishment and initiation of specialized funds are quicker due to simplified documentation and reduced due diligence requirements [6]. Group 3: Challenges and Considerations - Despite their advantages, specialized funds face challenges in fundraising, particularly due to the scarcity of quality projects and the competitive nature of popular sectors [9]. - The inability to expand funds or redeem investments post-formation limits the flexibility of specialized funds, potentially increasing operational costs [7][10]. - The risk profile of specialized funds can be higher in certain sectors, as they are more susceptible to market shocks compared to blind pool funds, which can diversify their investments [8][10].

Core Insights - The new fund has received support from both state-owned capital and market-oriented investors, achieving a reinvestment rate of approximately 70% [2] - The fund continues to focus on key areas such as smart energy, industrial technology, and algorithm technology (artificial intelligence) [2] - The successful establishment of the new blind pool fund marks a significant milestone in the development of the company and validates the performance of previous investments [2] Fund Strategy - The fund size is consistently controlled within 500 million, enhancing overall fundraising and investment efficiency while allowing ample time for post-investment management and exits [2] - The company aims to identify high-growth potential "alpha" companies in the technology investment sector, leveraging its established expertise in energy and industrial fields [2] Investment Focus - The company prioritizes investments in technology innovation companies that have commercialized products or services, rather than solely relying on technological innovation [2] - Investments are typically made at the B-round stage, where core technologies are maturing and market demand is being rapidly validated [2] Portfolio Performance - The investment strategy of balancing technology and commercial viability has proven effective, with 95% of portfolio companies successfully completing subsequent financing rounds [2] - Over 60% of portfolio companies have grown into nationally recognized "little giants," with several entering the IPO process in A-shares, Hong Kong, and U.S. markets [2]

Core Insights - The article discusses the resilience and growth of Jingshui Lake Venture Capital, a relatively young VC firm that has successfully navigated industry challenges and established a stable position in the market [1][2][4] Fundraising and Strategy - Jingshui Lake has raised over 1 billion RMB in the past year, including new S funds and FOFs, indicating a significant achievement in a challenging market environment [2][3] - The firm employs a PSD (Primary+Secondary+Direct) strategy, which has evolved in response to LP demands and market conditions, rather than being a pre-planned approach [2][21] - The fundraising process has seen strong participation from existing LPs, with about two-thirds of the new fund coming from familiar investors, reflecting a solid trust base [5][9] Market Position and Adaptation - The firm has adapted to the changing market by exploring alternative exit strategies, such as equity transfers and S transactions, to provide liquidity to LPs amid delayed IPOs [3][24] - Jingshui Lake's successful transactions have improved the DPI of its first fund, showcasing its ability to navigate the current market landscape effectively [3][24] LP Relationships and Dynamics - The firm has established strong relationships with LPs, with approximately 30% of its old LPs being those with guiding fund attributes, which allows for greater investment flexibility [8][12] - New LPs are characterized by their clear investment preferences and understanding of the market, facilitating straightforward communication and collaboration [6][10] Investment Focus and Philosophy - Jingshui Lake focuses on early-stage investments in sectors like smart energy and industrial technology, maintaining a disciplined approach to avoid overextending into high-valuation areas [19][20] - The firm emphasizes a long-term investment strategy, aiming for sustainable growth rather than chasing short-term gains, which aligns with its overall investment philosophy [25][26] Future Outlook - The firm is cautious about expanding its scale, preferring to maintain a manageable fund size that allows for focused investment in quality projects [18][19] - Jingshui Lake's approach to investment is rooted in a deep understanding of market cycles, allowing it to make informed decisions about sector opportunities and risks [26][27]

Core Viewpoint - The article discusses the dynamics between General Partners (GPs) and Limited Partners (LPs) in investment projects, highlighting the complexities of communication and decision-making in investment scenarios. Group 1: Investment Process - The primary operation model in the primary market involves GPs raising funds from multiple LPs and subsequently investing in various projects [1] - After several years, projects may go public, be repurchased, or undergo subsequent financing rounds, allowing GPs to return funds to LPs [2] - The company acts as a GP in this investment structure [3] Group 2: Communication Dynamics - LPs do not simply hand over funds to GPs; there is significant communication regarding project evaluations [4] - In some cases, LPs seek positive feedback from GPs to validate their investment decisions [5] - There are instances where LPs wish to invest directly or through blind pool funds, but GPs may have reservations based on project quality [6][20] Group 3: Project Case Studies - **Project A**: An LP expressed interest in a project but was uncertain about its quality, prompting the company to provide a cautious assessment [10][11][12] - **Project B**: An LP was keen on a project and wanted the company to invest using blind pool funds, but the company preferred to allocate those funds to projects it deemed more promising [18][19][20] - **Project C**: The company informed LPs about a new project, and the LPs requested investment allocations, but the company was reluctant to share limited investment capacity [26][27][29]