Chinese Equity Funds Shift Fundraising Efforts to Middle East, But Money is Hard to Come By(AI Translation)
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- Chinese VC/PE firms are increasingly exploring the Middle East for fundraising amidst challenges in both domestic and international markets, with over 200 firms visiting in 2023 despite few successful cases.
- Middle Eastern investors, including sovereign wealth funds, show interest in diversifying investments but are cautious and prefer building long-term relationships, contrasting with the quick fundraising expectations of some Chinese firms.
- Direct investment is becoming a preferred approach for Middle Eastern sovereign wealth funds in China, focusing on strategic sectors like green economy and technology, while also aiming to leverage Chinese expertise for their own economic diversification.
文｜财新周刊 岳跃 王婧 王力为
By Caixin Weekly's Yue Yue, Wang Jing, Wang Liwei
“没去过中东，都不好意思说自己是做投资的。”2023年以来，中国VC/PE机构纷纷赴中东“淘金”，尽管鲜有成功募资的案例，但丝毫不能阻挡中国GP（基金管理人）的热情。龙年春节刚过，又有不少机构远赴中东。清科集团董事长倪正东带领的参访团队，也即将开始中东之行。
"Without a trip to the Middle East, it's almost embarrassing to say you're in investment." Since the beginning of 2023, Chinese VC/PE firms have flocked to the Middle East in search of "gold". Despite few successful fundraising cases, this has done little to dampen the enthusiasm of Chinese GPs (General Partners). Right after the Spring Festival in the Year of the Dragon, many institutions made their way to the Middle East. A delegation led by Ni Zhengdong, Chairman of Zero2IPO Group, is also about to embark on a trip to the Middle East.
财新此前报道，中国VC/PE机构，尤其是以美元募资和新经济投资为主的机构，当下面临着境外上市退出渠道不畅、美元基金募集困难等多重挑战；境内市场，人民币基金募资环境未有改善，A股IPO收紧更让募资端雪上加霜（参见本刊2023年第30期《私募股权基金艰难转向》）。
Caixin previously reported that Chinese VC/PE firms, especially those focusing on dollar fundraising and investments in the new economy, are currently facing multiple challenges including difficulties in exiting through overseas listings, challenges in raising dollar funds; domestically, the environment for raising RMB funds has not improved, and tighter IPO regulations in the A-share market have further exacerbated fundraising difficulties (see issue no. 30 of 2023, "Private Equity Funds Struggle to Pivot").
投中数据显示，中国VC/PE在2023年完成募集的基金规模为1104亿美元，同比下降18.9%，连续两年下滑；全市场12893家VC/PE机构中，仅有3847家参与新设基金，占比不到三成；这3847家机构中，56%在2023年仅募集到一只基金，募集到两只基金的占22%，“LP（基金投资人）的钱袋子越发收紧”。
According to InvestData, China's VC/PE (Venture Capital/Private Equity) market saw a total of $110.4 billion raised in 2023, marking an 18.9% decline year-over-year and continuing a downward trend for the second consecutive year. Out of the 12,893 VC/PE firms in the entire market, only 3,847 participated in raising new funds, accounting for less than 30%. Among these 3,847 institutions, 56% managed to raise only one fund in 2023, while 22% raised two funds, indicating that "the purse strings of LPs (Limited Partners) are tightening."
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