Say goodbye to IPO dependence; exit routes in the equity market are becoming more diverse

Recently, with Suzhou Industrial Park Qichen Hengyuan Equity Investment Partnership (Limited Partnership) officially taking control of Tianmai Technology, this year-long acquisition has finally been finalized. This transaction marks the first successful market-based venture capital institution to gain control of a listed company following the release of the “Opinions on Deepening the Market Reform of Mergers and Acquisitions of Listed Companies” (commonly known as the “Six Mergers and Acquisitions Rules”). It is not only a transfer of control but also reflects a profound shift in the exit logic of PE/VC institutions under the current market environment. Looking back to 2025, driven by policy incentives and industrial upgrades, China’s M&A market has experienced a revival. PwC’s “2025 China Corporate M&A Market Review and Outlook” shows that the total disclosed transaction value for the year exceeded $400 billion, a year-on-year increase of 47%. Meanwhile, with the adjustment of IPO pace and increased demand for the revitalization of existing assets, the exit paths for private equity firms are also changing: M&A exits are becoming an important option, and S funds are gradually gaining attention. The equity investment market is gradually reducing its reliance on IPOs, moving toward a more diversified and professionalized exit stage. (China Securities Journal)