What is Lian Kai Capital's analysis of S Fund?

In the process of participating in the opportunity exploration and transaction execution of S fund, Lian Kai Capital found that since the second half of 20021,S fund transactions are no longer dominated by LP-led share transfer, but with the gradual increase of GP-led S fund transactions, the demand is more diversified. The main types include:

Continuous funds of the same GP: Most of these transactions occur when the funds initiated by GP enter the exit period, but some projects in the portfolio have not achieved the maximum value release or are in a low valuation state due to the secondary market. At this time, GP has a great incentive to reorganize old funds and realize time for space.

Another GP-led S transaction is mainly the contribution to the fund at the end of the investment. The main reason is that due to the adjustment of internal and external policies, the original promised investor failed to pay in full. After GP completed the investment in the first phase of subscription funds, the second phase of funds failed to arrive in time, which led to its motivation to seek new investors.

Then there is the transfer of old shares of existing portfolio projects. More and more GPs began to seek to increase the return of DPI in advance through the transfer of old shares.