Small and medium-sized insurance companies test the waters of private equity quantification and attract attention through MOM investment channels.

"Some insurance companies are trying, and this matter has spread quickly within the industry. Many private equity firms and securities firms have approached us, hoping that insurance funds can invest a bit," said an insurance investment professional. "In the past two years, insurance funds have indeed been investing, and the trend is very obvious," said a person from a private equity firm with a hundred billion assets under management. An investment officer from a small and medium-sized insurance company that has already invested in private equity products remained secretive about the matter, saying, "This matter cannot be discussed at the moment." The "matter" mentioned by the three individuals above refers to insurance funds investing in private equity quantitative products. Recently, the market has seen significant positive changes since the start of the "924" market in 2024. Private equity quantitative, especially quantitative index-enhanced products, have performed well, attracting investments from several small and medium-sized insurance companies. As regulatory agencies have not yet clarified the matter of insurance funds investing in private equity products, most insurance funds do not directly invest in private equity quantitative products, but instead invest indirectly through Managed Account Program (MOM) arrangements. In this structure, insurance funds directly invest in a single asset management plan managed by a securities firm, while private equity firms act as investment advisors, effectively allowing insurance funds to purchase a private equity strategy. The current trend of insurance funds investing in private equity quantitative products is gradually attracting market attention, along with some controversy. Some believe that this type of investment is still in a gray area, facing risks related to policies, compliance, and conflicts of interest. However, some investors believe that one should not throw the baby out with the bathwater, as this is a proactive attempt by small and medium-sized insurance companies in a low-interest environment, aligning with the direction of increasing long-term capital in the market.