Private Fund Total Scale Reaches New High of 22.6 Trillion Yuan

Reporter: Chang Xiaoyu, Fang Linglin

On the evening of March 24, the Asset Management Association of China released data showing that as of the end of February 2026, the total size of private equity funds reached 22.6 trillion yuan, a record high. Since January 2025, the industry has grown by over 2 trillion yuan; after surpassing 22 trillion yuan for the first time at the end of October 2025, it has continued to set new records for five consecutive months, maintaining this level.

By type, as of the end of February 2026, there were 81,500 active private securities investment funds with a combined size of 7.35 trillion yuan; 29,900 active private equity funds with a total of 11.16 trillion yuan; and 28,100 active venture capital funds with a total of 3.80 trillion yuan.

Mengxi Investment officials told Securities Daily that externally, the rebound of the A-share market and some growth-style assets has increased the “book assets” of private funds. Meanwhile, as overall yields from deposits decline, some high-net-worth clients and institutional funds are shifting toward private quantitative neutral, index-enhanced, or multi-strategy products, creating incremental allocation demand. This has accelerated fundraising and issuance by private institutions, directly boosting the total size of private funds. Internally, some quantitative private firms are speeding up strategy iteration and technological upgrades, especially in AI-powered research and investment, significantly enhancing their ability to generate excess returns.

Li Chunyu, FOF fund manager at Shenzhen Rongzhi Private Securities Investment Fund Management Co., Ltd., told Securities Daily that the resilience of the economic fundamentals, deepening reforms in the capital markets, and ongoing regulation of the private fund industry have collectively strengthened confidence in long- and medium-term capital allocation through private funds, driving the total size to new highs.

While the total size of private funds continues to hit new records, industry segmentation is also ongoing—risk institutions are accelerating cleanup, and the number of billion-yuan private funds is increasing. The number of private fund managers decreased from 20,300 at the beginning of 2025 to 19,100 by the end of February 2026, indicating a clear trend of industry “survival of the fittest.” Meanwhile, the number of billion-yuan private funds continues to grow, with data from Puhuiwang showing that as of the end of February 2026, there were 126 such funds, a record high.

In response, Inno Asset officials stated, “This is a natural result of recent regulatory efforts to eliminate ‘fake, inferior, chaotic’ private funds and promote high-quality industry development. At the same time, the long-term accumulation of top institutions in talent, data, technology, risk control, and branding has further strengthened the scale clustering effect.”

“This reflects the industry’s transition from a relatively extensive development stage to a new stage centered on refined operations, which is also an inevitable step toward maturity,” said a related person from Mengxi Investment. They added that with the continuous improvement of relevant laws and regulations and the gradual maturity of investors, institutions with weak risk control, distorted strategies, and poor governance are being phased out; meanwhile, leading institutions with stable excess return capabilities, drawdown control, and strong systematic research platforms and client service capabilities are more likely to attract capital.

Regarding future focus areas for private institutions, Inno Asset officials believe that the key lies in enhancing professionalism and differentiation, such as increasing multi-strategy and low-correlation allocation capabilities, integrating research, trading, and risk control across the entire chain, and promoting frontier technologies like AI and large models to serve research and real trading.

For quantitative private funds, Mengxi Investment emphasizes that talent is especially critical. Institutions that can attract and retain top talent are more likely to gain a competitive advantage. In recent years, many quantitative private firms have strengthened their “soft power” through institutional and cultural development. Meanwhile, technology is the “moat” of quantitative private funds, and in the future, more institutions will increase investment in technology, especially in AI.

(Edited by: Wen Jing)

Keywords: Private Equity