Although state-backed limited partners (LPs) are reshaping China’s PE-VC landscape, contributing to 26.9% of the total RMB fundraising in 2022, not all fund managers or GPs are enthusiastic about taking on government capital after weighing the pros and cons.
To make it clear, some GPs are turning down a pool of LPs who have collectively committed hundreds of billions of RMB – or an equivalent of tens of billions in US dollars – within one year when the overall fundraising sentiment remains bleak.