The "Star Special" Fund is being fiercely competed for by LPs.

Author | Chen Mei                   Editor | Wang Qingwu                   Source | Tianzhong.com

At the end of the year, when I meet with primary market investors, they once again bring up a hot industry topic: specialized funds are making a comeback. According to this investor, last year a leading GP was very active in specialized funds. “Many projects are backed by specialized funds, rather than traditional blind pool funds.”

In fact, since the IPO market warmed up, the market temperature for star specialized funds has clearly risen. Recently, I also heard that many LPs are proactively inquiring about certain top star projects, explicitly stating they are only interested in these “star projects.”

“Because, from these LPs’ perspective, compared to blind pool funds, star projects are more certain and aligned with industry development directions, and their exit paths are also clearer in the future,” said the investor.

“Star projects, just go in blindly”

During the conversation, the investor mentioned that LPs are keen on investing in star projects because of “lower cognitive costs.” “These projects are highly recognizable and align with policy guidance, so there’s no need for lengthy due diligence or repeated explanations. LPs who want to get involved understand this.”

More importantly, for most external LPs, although they are interested in certain star projects, it’s often difficult to participate in new financing rounds through conventional channels. Generally, new funding rounds are prioritized for existing shareholders or strategic partners, and some star projects may even select their funding partners, making it hard for external capital to squeeze in.

For this reason, star specialized funds have become a “hot commodity” in the eyes of LPs. Specialized funds are usually set up to invest in a specific project; they generally do not participate in new financings but enter through acquiring old shares. In many LPs’ view, this has almost become one of the main ways to participate in top projects.

Regarding valuation, the investor gave me an interesting analogy: “For example, a humanoid robot company that has appeared on the Spring Festival Gala multiple times is valued at about 12 billion yuan after investment; another leading company with a different technical route is valued at nearly 21 billion yuan. If your relationship with me is good, I can give you a discount, and the latter’s old share valuation would be around 18 billion yuan—it’s up to you whether you want to take it.”

To some extent, star project specialized funds also involve “face recognition” to grab quotas and leverage connections to secure top-tier projects. Such star specialized funds with old shares available are often seen in the industry as “blindly investable” rare opportunities.

“It’s like Yu Shu Technology—if there’s a chance to get on board, would you? So, there’s no need to doubt,” said the investor.

IR professionals also confirmed to me the prosperity of specialized funds. One IR person lamented: “In the past, when raising funds, I would have several dinners with high-net-worth clients, but there was no movement afterward; now, they contact us proactively without us needing to schedule meetings.” The same applies to county LPs—if the fundraising message is simple enough, for example, translating ‘IRR, thresholds, redemptions’ into terms they understand like ‘capital preservation, interest, flexible withdrawal,’ then single investments of a few million to tens of millions are not uncommon.

Besides county LPs, local governments, family offices, and overseas capital are also major contributors. Especially local governments, an industry insider revealed, they prefer investing in such projects partly because of industry development relevance and partly because of higher certainty.

In terms of investment size, local governments are very “generous,” often investing several tens of millions to over fifty million yuan per deal—several times more than county LPs; overseas funds are limited by foreign exchange controls and structural requirements, usually participating indirectly through SPVs (special purpose vehicles). “Although the process is more complex, these capital sources are quite substantial and often target top-tier projects,” the insider added.

The revival of specialized funds has fully activated the long-dormant LP market, but for GPs, having star or top projects in hand is essential to share in this cake. Therefore, to some extent, only a few institutions are still at the top of the specialized fund game.

Star projects, better for fundraising

The boom in specialized funds reflects the market’s demand for certainty assets. But behind this certainty is continuous policy support and the rapid rise of hard-tech assets in the secondary market. Especially after several hard-tech companies went public, achieving high premiums in the secondary market, greatly boosting confidence in the primary market.

For example, two GPU chip companies listed at the end of last year, despite already having high valuations before IPO, saw their market caps soar over 300 billion yuan, with Moore Thread reaching as high as 440 billion yuan. There’s no highest, only higher.

Furthermore, in early January this year, several companies listed on the Hong Kong Stock Exchange—such as Bairui Technology, Zhipu, and MiniMax—had initial market caps exceeding HKD 100 billion. MiniMax, in late January, peaked at HKD 599, with a market cap approaching HKD 200 billion—doubling in less than a month after listing.

These cases have fueled market imagination about the future performance of these certain assets post-listing, making pre-IPO star projects and top companies highly sought after by LPs.

However, not all projects branded as “stars” can successfully go public. One investor admitted: “In reality, almost all specialized funds claiming to invest in star projects say they will apply for IPO immediately after this round of financing. But how things actually progress remains uncertain.”

Most of these “immediate IPO” projects aim for listing in Hong Kong. On one hand, the STAR Market has a “recommendation system” with high thresholds; on the other hand, the HKEX’s 18A and 18C rules are designed for unprofitable biotech and specialized tech companies, providing a path for many loss-making robotics and AI firms.

Data shows that over the past year, the number of companies waiting in IPO queues at HKEX has been astonishing. As of February 9, 2026, there are 386 companies queued, including 380 on the main board and 6 on the GEM. Among these, 115 are “A+H” companies, 43 are “18A biotech” firms, and 21 are “18C specialized tech” companies. This has often led to the HKEX ringing the bell less frequently, becoming a hot topic.

Regarding these projects, the investor believes there are risks too. He said that SPV specialized funds are generally structured as limited partnerships, and some are not registered with the Asset Management Association of China. “If disputes arise later, it could be difficult to handle, risking LP rights. Also, looking at the market trend, some star projects have experienced IPOs that failed to sustain their initial hype.”

“But overall, the market still buys into this certainty because only ‘star projects’ are good for fundraising,” he concluded.

Under the surface, star projects are also bubbling with undercurrents

The popularity of specialized funds has made “star projects” a scarce resource in LP eyes; but who can stay ahead and enter the top tier remains uncertain, and the market is still “watching.” An invisible competition is unfolding among these leading projects.

For example, in the commercial aerospace field, the competition involves recoverable rocket technology, satellite manufacturing, and supply chain integration. So far, LandSpace and Long March 12A have achieved some technological breakthroughs, including satellite mass production, miniaturization, intelligence, as well as inter-satellite laser communication and high-precision sensors.

In humanoid robots, the arena is even larger. Take the 2026 Spring Festival Gala, which attracted over a billion viewers—this has become a key battleground for humanoid robots. Yu Shu Technology, after debuting the robot “Benben” in 2021 and the “Yangbot” humanoid robot in 2025, has appeared on the Gala stage for the third time.

Magic Atom, as a “strategic partner for intelligent robots,” showcased humanoid robots Magic Bot Z1, Magic Bot Gen1, and quadruped robot Magic Dog at the Gala; the Galaxy General, declared as the “designated embodied large model robot for the 2026 Spring Festival Gala,” participated in the New Year microfilm “My Most Unforgettable Night.”

Songyan Power, a partner in the Gala humanoid robot project, performed a skit “Grandma’s Favorite” with Cai Ming. For these companies, the Gala is not just a show; it’s an important signal to LPs, local governments, and industry partners that they have entered the national mainstream spotlight.

Notably, Zhi Yuan Robot, which did not appear on the Gala, hosted a “Robot Wonderful Night” just before the Spring Festival. During this “Wonderful Night,” nearly all performance categories—dance, skits, magic, martial arts, songs, fashion shows—were performed by Zhi Yuan robots, demonstrating that robots have entered a new stage of “stage-level system intelligence.”

Thus, the exposure from top-tier Gala traffic, the ability to host their own robot shows, and the technical competition among various companies all indirectly raise the threshold for “top star projects.” One investor believes this may amplify the head effect and accelerate the clearing of bubbles.

In terms of technological narratives, competition is fierce: some emphasize “full self-developed joint modules” to control hardware; others focus on “end-to-end large model-driven” AI capabilities; some demonstrate commercial viability by “entering automotive factory trial production lines.”

Although the stories differ, their goal is very consistent: to anchor an “irreplaceable top position,” maintain a competitive advantage, and increase certainty.

Of course, this competition has also extended externally. In January 2026, Li Xiang, CEO of Li Auto, announced in an internal letter that the company is officially entering the humanoid robot field, aiming to launch a “humanoid robot with complete life features” by 2030.

Looking ahead, competition among various humanoid robot companies will intensify, and star companies must also rise to the top to stay in the game. Specialized funds, as the most direct link between star narratives and real capital, will also redistribute resources and flows in the primary market.