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in august, the vc/pe market has seen a long-awaited warming. according to cvsource data, the number of newly established funds in august has slowly recovered, totaling 419. the investment market has also recovered slightly, with 595 investment cases and an investment scale of us$11.753 billion, both year-on-year and month-on-month growth.

the current market has high hopes for m&a exits. in august, the number of completed transactions in the chinese m&a market increased significantly, with four m&a transactions exceeding us$100 million completed. 29 private equity funds exited through m&a, with the fund recovering 2.341 billion yuan. the fund's recovered funds are increasing exponentially.

the number of newly established funds has rebounded, with zhejiang having the largest number

according to cvsource data, in august this year, the number of newly established funds in china's vc/pe market totaled 419, a year-on-year decrease of 47% and a month-on-month increase of 6%. the number of newly established funds has slowly recovered. a total of 361 institutions participated in the establishment of funds, and the activity of institutions has increased compared with last month. among them, xinding capital, xide investment and junshi zhenghe are relatively active in fundraising, and the number of newly established funds is 3 or more. among the newly established funds, the largest one is the science and technology innovation mother fund announced by the bank of china with a total target scale of 30 billion yuan. this is the first science and technology innovation mother fund promoted by a large state-owned commercial bank. from the perspective of the future investment direction of the newly established funds, the new energy field is quite popular.

in terms of regional distribution, zhejiang, guangdong and shandong ranked the top three in terms of the number of newly established funds, with 72, 59 and 52 funds respectively. compared with the previous month, except for jiangsu, shanghai and beijing, the performance of newly established funds in august in other provinces was better. in terms of subdivided city-level regions, qingdao, shenzhen and guangzhou ranked the top three. compared with the previous month, qingdao, hefei and ningbo have seen rapid growth, while shenzhen and jiaxing have slightly cooled down.

in addition, there are qflp funds launched in august. for example, zhangjiagang heshun venture capital partnership (limited partnership), a joint venture between zhang venture capital group and lightspeed, has completed its industrial and commercial registration, and the initial investment of the fund of us$9 million has been paid in full. this is the first qflp fund launched in zhangjiagang. qflp funds, or qualified foreign limited partnership funds, are a form of foreign investors participating in the investment of non-listed equities in china. under the current foreign direct investment management policy, qflp funds are an important channel for foreign investors to participate in equity investment in china. in recent years, shenzhen, hubei, jiaxing and other provinces and cities have actively promoted the development of qflp pilot projects. since the beginning of this year, the first qflp funds have been launched in many places such as shaoxing and xuzhou.

the investment market has recovered slightly, and the funds returned from m&a exits have increased significantly

the investment market also rebounded slightly in august. according to cvsource data, the number of investment cases in august was 595, up 4.39% month-on-month and 30.20% year-on-year; the scale of investment was us$11.753 billion, up 7.39% month-on-month and 12.67% year-on-year. the number of investment cases has continued to grow in the past three months, and the investment market has rebounded slightly.

from the perspective of industry distribution, the electronic information industry retained the top spot, followed by the advanced manufacturing and medical health industries, which ranked the top three with 167, 90 and 86 cases respectively. among them, the investment scale of the electronic information and advanced manufacturing industries performed outstandingly, both exceeding us$2 billion. from the perspective of sub-sectors, semiconductors attracted widespread attention, with an investment scale of over us$1 billion.

the top three regions with active transactions are zhejiang, guangdong and jiangsu. the number of investment cases in zhejiang and guangdong is 88 each. the transaction scale in shanghai, guangdong, zhejiang and other regions is leading. the transaction scale in guangdong reached us$2.735 billion, making it the city with the largest transaction scale and the highest average transaction value in august.

in the current market, vc/pe has high hopes for m&a exits. according to cvsource data, a total of 237 m&a transactions were completed in august 2024, up 35.43% from the previous month and down 12.87% from the previous year. among them, 129 transactions disclosed the amount, with a total transaction amount of us$4.782 billion, down 27.90% from the previous month and down 48.08% from the previous year. there were 4 m&a transactions with a scale of over us$100 million, of which the largest transaction was chongqing jianghe shunsui enterprise management co., ltd.'s acquisition of 100% equity of chongqing jianghehui enterprise management co., ltd. held by geely technology group co., ltd., with a transaction price of us$340 million.

in terms of exit, a total of 29 private equity funds successfully exited through mergers and acquisitions in august, with a total amount of 2.341 billion yuan in cash returned, a figure that was nearly five times the 481 million yuan in july.

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