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 met with primary market investors, he brought 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, he 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 aforementioned investor mentioned that LPs are keen on investing in star projects due to “lower cognitive costs.” “These projects are highly recognizable, align with policy guidance, and don’t require lengthy due diligence or repeated explanations. LPs who want to get involved all understand this.”

More importantly, for most external LPs, although they are interested in certain star projects, it’s 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 sources, making it hard for external capital to squeeze in.

For this reason, star specialized funds have become “hot commodities” in the eyes of LPs. A specialized fund usually refers to a fund established to invest in a specific project; they generally do not participate in new financings but enter through secondary sales of existing shares. In many LPs’ view, this has almost become one of the main ways to participate in top-tier 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 post-investment, while another leading company with a different technical route is valued at nearly 21 billion yuan. If you have a good relationship with me, I can offer you a discount; the latter’s old share valuation is around 18 billion yuan, so it depends on whether you’re willing 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 available old shares are often seen in the industry as “blind entry” 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 boom of specialized funds. One IR person lamented: “In the past, when raising funds, I’d have dinner with high-net-worth clients several times, but there was no progress; now, they contact us proactively without even needing to schedule meetings.” The same goes for county-level LPs—if the fundraising pitch is simple enough, for example, translating ‘IRR, thresholds, redemptions’ into terms they understand—‘capital preservation, interest, withdrawal at will’—single investments of a few million to several tens of millions are not uncommon.

Besides county LPs, local governments, family offices, and overseas capital are also major contributors. Particularly, local governments prefer investing in such projects, partly due to industry relevance and partly because of higher certainty.

In terms of investment size, local governments are quite “generous,” often investing several tens of millions to over fifty million yuan per deal—several times more than county LPs. Overseas capital is limited by foreign exchange controls and structural requirements, usually participating indirectly through SPVs (special purpose vehicles). “Although the process is more complex, these funds are also quite substantial, often targeting top-tier projects,” the source 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 the pie. Therefore, to some extent, only a few institutions are still playing at the specialized fund table.

Star projects, better for fundraising

The popularity of specialized funds reflects market demand for certainty assets. But behind this certainty are ongoing policy support and the rise of hard-tech assets in the secondary market. Especially after several hard-tech companies went public, they quickly achieved 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 only higher and higher.

Furthermore, in early January this year, several companies listed on the Hong Kong Stock Exchange—such as Bairui Technology, Zhipu, and MiniMax—initially had market caps exceeding 100 billion HKD. MiniMax, by the end of January, surged to 599 HKD, approaching a 200 billion HKD market cap, doubling in less than a month.

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

However, not all projects branded as “star” 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. But how things actually progress remains uncertain.”

It’s worth noting that these “immediate IPO” projects mostly aim for the Hong Kong market. On one hand, the STAR Market has high thresholds and a “recommendation system”; 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 Hong Kong IPO queue has been quite impressive. As of February 9, 2026, there were 386 companies waiting to IPO on HKEX, including 380 on the main board, 6 on the GEM. Among these, 115 are “A+H” companies, 43 are “18A biotech,” and 21 are “18C specialized tech.” This has often led to the HKEX’s bell ringing being a hot topic.

Regarding these projects, the investor believes there are risks too. He pointed out that SPV specialized funds are usually structured as limited partnerships, some not registered with the Asset Management Association. “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 with share price declines.”

“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 enthusiasm for specialized funds has made “star projects” a scarce resource in LP eyes; but who can stay ahead and enter the top tier remains uncertain. 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. The 2026 Spring Festival Gala, watched by over a billion viewers, became a battleground for humanoid robots. Among them, Yu Shu Technology, after debuting the robot “Benben” in 2021 and the “Yangbot” in 2025, made its third appearance on the Gala stage.

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 company Galaxy General, designated as the “2026 Spring Festival Gala’s official embodied large model robot,” participated in the New Year microfilm “My Most Unforgettable Night.”

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

Notably, Zhi Yuan Robot, which did not appear on the Gala, hosted a “Robot Wonderful Night” event 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 companies have all raised 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,” highlighting hardware control; others focus on “end-to-end large model-driven,” emphasizing AI-native capabilities; some demonstrate “entry into automotive factory trial production lines” to prove commercialization.

Although the stories differ, their goal is very similar: to secure an “irreplaceable top position,” maintain a competitive stance, 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 would officially enter 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 climb into the top tier 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.