The new phase S Continuation Fund under Jing Shui Lake has been oversubscribed and established.

Recently, Jingshui Lake Venture Capital’s new S continuation fund, Suzhou Industrial Park Jingshui Lake Sairui Venture Capital Partnership (Limited Partnership) (referred to as “Jingshui Lake Sairui”), was oversubscribed and successfully completed all capital contributions and investment closings.

This is the second S continuation fund recently established by Jingshui Lake Venture Capital. During its initial fundraising phase, the fund received oversubscription commitments from multiple investment institutions within a short period. Ultimately, the fund closed at a size three times larger than the previous S continuation fund (“Jingshui Lake Dingchen”). The Jingshui Lake team also completed the fund setup and investment closing efficiently and at a fast pace.

Investors in Jingshui Lake Sairui include well-known, experienced professional investment institutions and parent funds, such as Yuanhe Chenkun, China Ship Insurance, Xichuang Venture Capital, Boxuan Capital, Huikai Investment, Huicui Hengyi, Kaitai Yuanjing, and GuangFOF. The professional capabilities of all participants in areas such as S transactions, industry understanding, and project evaluation have been a key foundation for the efficient fundraising and investment closing of this S continuation fund. Notably, Yuanhe Chenkun, as a core investor in Jingshui Lake Dingchen, re-invested based on their deep understanding of Jingshui Lake, their long-term optimism about related project development, and their strong partnership with Jingshui Lake Venture Capital, leading the fund as a major investor.

With the completion of this S transaction, along with several previous exit dividends and ongoing holdings in projects under review for IPO, Jingshui Lake Venture Capital’s first blind pool fund has returned significantly more than its total principal and threshold returns to investors, while still maintaining assets capable of generating higher excess returns. This blind pool fund has achieved core performance metrics significantly exceeding the returns of comparable vintage year funds in the market.

It is worth noting that Jingshui Lake Sairui’s investor composition, trading style, and decision-making mechanisms are more diverse. It includes market-oriented parent funds, insurance capital, as well as support from central, local state-owned assets, and dollar-based institutions. More importantly, the transaction amount for this S continuation exceeded the total size of the target asset fund, which is a significant exit transaction for funds in the exit phase. This required investors to be more cautious, and it posed more complex and detailed demands on transaction design, communication, and compliance processes.

In response to these new challenges, the Jingshui Lake team quickly completed tasks such as transaction scheme design, due diligence coordination of underlying assets, balancing the quotas of all participants, and driving decision-making. Meanwhile, the team maintained intensive communication with investors in the exit-phase fund, achieving unanimous approval from all LPs, aligning schedules, and ensuring the transaction was executed efficiently, resulting in a mutually satisfactory outcome. In terms of execution intensity and complexity, Jingshui Lake Sairui far surpassed the previous S continuation fund. Throughout this process, the team gained practical experience handling complex transactions, significantly enhancing their capabilities in S continuation deals, and providing valuable reference points for future diversification of exit strategies.

Zhang Yi, Founding Managing Partner of Jingshui Lake Venture Capital, stated: “This continuation fund, with its large scale, multiple participating institutions, and rapid transaction pace, represents a new, efficiently completed S transaction based on our prior experience. It is also a significant milestone for Jingshui Lake Venture Capital as a fund manager. The returns distributed to investors from our first blind pool fund have already far exceeded its total principal. Our first blind pool fund has weathered two major capital downturns in 2018-2019 and 2023-2025, achieving these milestone results, which is no small feat. We are especially grateful for the efforts and achievements of the entrepreneurs we invested in, and for our team’s execution ability to seize fleeting investment and exit opportunities. Additionally, the oversubscription of this S continuation fund further confirms investors’ high recognition of Jingshui Lake Venture Capital and the quality of our past investments. As the artificial intelligence industry continues to flourish, with related applications gradually being implemented and market demand expanding, we look forward to related projects maintaining rapid growth and delivering substantial returns to investors.”