The stock market is booming, and private equity MOM is gradually emerging as a “new favorite” for external funds. According to market insights, two significant sources of capital—bank wealth management and insurance funds—are becoming key target groups for brokerages in the private equity MOM arena, initiating a new competitive landscape. Analysis reveals that this year, 58 private equity MOM products containing “MOM” in their names have been filed, marking the highest number in nearly six years. Among these, 10 MOM products explicitly indicate that their funding sources come from wealth management firms, showing that wealth management capital is being allocated to various asset classes through MOM products.
Industry insiders indicate that since the beginning of the year, the robust stock market has encouraged wealth management companies to invest in MOM products. On one hand, MOM products serve as a channel for market entry, and bank external funds particularly favor quant hedge funds with stable performance due to their preference for traceable investment targets. On the other hand, wealth management companies can convenient connect with multiple private fund managers through collaborations with single brokerage asset management and futures asset management firms. In this scenario, brokerages and futures asset managers benefit significantly from transaction fees based on the size of wealth management entrusted funds.
The latest data shows a record number of filers for private equity MOM products this year. In December 2019, the CSRC released the "Guideline for Management Organizations of Investment Fund Managers (MOM Products) (Trial)", which defines MOM as an arrangement where the parent manager allocates raised fund assets into two or more independent units and appoints multiple third-party asset management institutions as investment advisors (sub-managers). Put simply, the parent manager is responsible for fundraising and hiring advisory institutions, dividing the fund assets into multiple units for investment according to various advisors' recommendations.
MOM products are categorized into public and private equity MOMs based on their fundraising methods. Private equity MOMs must file with the Asset Management Association of China after establishment and must be managed by qualified securities and futures firms. Advisors can include securities and futures firms, commercial bank asset management, insurance asset management, or other qualified private equity fund managers. According to publicly available data from the Asset Management Association of China, a total of 115 private equity MOM products have been filed since the guideline was issued, with 58 filed in 2025, the highest in nearly six years, representing over half of the total filings, indicating that private equity MOM is increasingly favored by external funds.
Analysis of private equity MOM filing names shows that Xinyin Wealth Management has been using private equity MOMs for external investments since 2021. Meanwhile, Everbright Wealth Management has been the most frequent participant in private equity MOMs, with an unprecedented number of participations this year, collaborating with Guotai Junan Futures and Everbright Futures to jointly engage in four private equity MOM investments.
For private equity MOMs, the main investors are bank wealth management subsidiaries and insurance funds. Bank wealth management prefers to select management entities from trust plans, brokerage asset management, futures asset management, and appoint private fund managers as consultants. Regarding investment strategies, institutions like brokerages and futures asset managers are expected to implement neutral, subjective, or long quantitative strategies and must maintain a robust trading risk control system.
Due to the unified regulatory framework of the financial supervision agency, wealth management firms favor collaborating with trust companies. According to regulations governing banking wealth management subsidiaries, if wealth management companies appoint private fund managers, they need to ensure that at least three investment managers have a track record of over three years in traceable securities and futures investment without any negative professional records.
Insurance companies, on the other hand, tend to collaborate with brokerage asset management. In late September last year, the Central Financial Office and the CSRC issued a joint opinion on promoting long-term funds into the market, highlighting the importance of constructing a market environment supportive of long-term investments, boosting the urgency of insurance funds entering the market. Unlike wealth management companies, insurance funds tend to invest through individual asset management plans, such as the asset management plan for the combined investment in the Ping An Fund-Ping An Life Mixed Configuration No.5 MOM filed in March this year.
Why is private equity MOM gaining popularity? According to Sun Haibo, founder of the financial research institution Faqin Financial, the reason for the heightened attention on MOM products following new asset management regulations is primarily due to the strict limit on nested structures; hence, future collaborations among different types of managers will mainly take the forms of FOF, MOM, and investment advisors. He further stated that MOM is designed for major asset allocation, serving as a specialized type of standardized advisor. MOM's core function is to dynamically adjust the asset allocation and entry list of sub-fund managers according to performance evaluation systems.
Compared to FOFs, the key advantage of MOM products is the ease of replacing managers, thereby avoiding being tied to poorly performing assets. Furthermore, unlike FOFs that are purely result-oriented and lack process management, MOM allows for uniform risk control which must pass through the parent manager’s risk control system. Additionally, MOM products provide greater transparency in investment traces, continuous tracking of investment strategies, and objective evaluation of investment performance.
Industry experts claim that MOM serves as a bridge between institutional capital and quantitative strategies, providing dual benefits of enhancing overall return stability through diversified allocations and efficient internal adjustments while helping large-scale bank wealth management and insurance funds mitigate the risks associated with “betting on a single investment,” facilitating effective index-based allocations.