Insurance funds team up to expand equity investments, with registered capital reaching 8.6 billion yuan. Seven insurance companies, including Taikang Life and Great Wall Life, participated.

Everyday Economic News Reporter | Yuan Yuan Everyday Economic News Editor | Huang Bowen

In the context of medium- and long-term capital entering the market, insurance companies are continuously expanding their private equity fund arrangements.

Tianyancha information shows that Tianjin Lanqin Equity Investment Partnership (Limited Partnership) (hereinafter referred to as “Tianjin Lanqin”) was recently established, with multiple insurance companies such as Taikang Life appearing among its partners. The Daily Economic News reporter noted that since 2025, insurance funds have frequently participated in private equity fund investments, with leading insurers like China People’s Insurance Company (PICC) launching new projects.

Industry insiders say that under the policy environment that continues to encourage “long-term capital investment,” insurance funds are accelerating their involvement in national strategic emerging industries and sectors that align with their core insurance businesses through private equity fund arrangements. It is understood that private equity investments mainly focus on early-stage equity and primary markets, leveraging the long-term and patient capital characteristics of insurance funds, especially life insurance funds.

Registered capital reaches 8.6 billion yuan, with seven insurance companies involved

Tianyancha publicly available information indicates that Tianjin Lanqin’s registered capital is 8.601 billion yuan, registered in Tianjin, with Gao Hemin De (Beijing) Enterprise Management Service Co., Ltd. as the executive partner. Its business scope includes engaging in equity investments, investment management, and asset management activities through private funds, but it must complete registration and filing with the Asset Management Association of China before conducting business activities, and it is prohibited from investing in sectors listed in the Negative List for Foreign Investment Access.

It is worth noting that the team behind Tianjin Lanqin is quite “luxurious.” Besides Gao Hemin De (Beijing) Enterprise Management Service Co., Ltd., it also includes Zhuoling Sheng Enterprise Management Service (Shanghai) Co., Ltd., Orchid LP HK Limited, and seven insurance institutions: Taikang Life, Great Wall Life, AIA Life, Zhonghong Life, Zhongyi Life, China United Tai Metropolitan Life, and Taikang Pension. Although the shareholding ratios of each company in Tianjin Lanqin have not been disclosed, based on the ranking in this public information, Taikang Life, Great Wall Life, AIA Life, and Zhonghong Life are major shareholders.

From the scope of business, Tianjin Lanqin will conduct equity investments and other activities through private funds. An industry insider told reporters that private equity funds mainly invest in early-stage equity and primary markets, characterized by long investment cycles, high investment thresholds, and high returns, aligning with the long-term and patient capital features of insurance funds, especially life insurance funds.

The reporter notes that this is not the first time insurance funds have teamed up for major projects. In May 2025, PICC Capital, Zhongyi Asset, and Zhongcheng Capital jointly established Beijing Baoshi Chengyuan Equity Investment Partnership (Limited Partnership), with a total investment of 13.001 billion yuan.

“Forming a team reduces the risk of failure for individual projects and allows for larger total investment, greater tolerance for errors, and potentially higher long-term investment returns,” said an industry insider. Small and medium-sized companies have limited funds to invest in private equity funds, and cooperation can achieve win-win outcomes for multiple parties.

Industry: Insurance participation in private equity fund strategies is expected to iterate and optimize

The increased involvement of insurance funds in private equity is driven both by policy guidance and by the asset allocation needs of insurance companies themselves.

In 2025, policy documents such as the “Notice on Adjusting the Regulatory Ratio of Equity Assets of Insurance Funds” and the “Notice on Further Expanding the Pilot Program for Equity Investment by Financial Asset Investment Companies” were issued, signaling encouragement for insurance funds to participate in equity investments.

Additionally, many regions are actively introducing insurance funds and other long-term capital through government-guided funds to participate in equity investments. For example, the “Shenzhen City Action Plan for Promoting High-Quality Development of Venture Capital and Private Equity (2025–2026)” proposes encouraging financial asset investment companies, insurance companies, and asset management institutions to participate in venture capital, aiming to establish a fund cluster worth hundreds of billions of yuan in Shenzhen, mainly investing in integrated circuits, biomedicine, artificial intelligence, and other fields, as well as key industries like electronics, life health, high-end equipment, advanced materials, and new energy vehicles.

Wang Dufu, Secretary of the Party Committee and Chairman of ICBC-AXA Life, pointed out that insurance funds are typical “long-term institutional investors,” with long investment horizons and large capital volumes. Private equity funds serve as “professional capital” that directly finance enterprises and help real economy companies grow stronger. The cooperation between the two can effectively utilize the investment expertise of private equity funds and leverage the capital advantages of insurance funds, improving returns and increasing the proportion of direct financing to better serve the real economy.

Wang Dufu stated that as single growth-oriented investment strategies can no longer meet the complex needs of insurance funds, their participation in private equity strategies will further iterate and optimize. For example, using secondary market transactions of private equity to optimize portfolios, maintain liquidity, and seize discounted investment opportunities. As Chinese companies accelerate their globalization and insurance institutions enhance their global asset allocation capabilities, cross-border private equity investments by insurance funds will become a long-term, ongoing innovation direction. In the future, insurance private equity will become more adept at employing a combination of “primary investments + S-funds (secondary market private equity funds) + cross-border allocation + ESG (Environmental, Social, and Governance) integration” strategies to seek the best balance between excess returns, risk diversification, and liquidity.

(Edited by: Qian Xiaorui)

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