# Prospect Avenue Capital

Prospect Avenue Capital is a Private Equity based in Beijing, China.

## Overview

- **Organization type:** Private Equity
- **Headquarters:** Beijing, China
- **Region:** Asia
- **Address:** Beijing, China
- **Founded:** 2018
- **Assets under management:** Undisclosed
- **Website:** pac.fund
- **LinkedIn:** https://www.linkedin.com/company/prospect-avenue-capital

## Regulatory record

- **Reports private funds:** No

## About

Prospect Avenue Capital is a private equity firm based in Beijing, China. It focuses on venture capital investments. The firm oversees approximately $300 million in assets.

## People

- Liao Jieyuan — Founding Partner & CEO

## Questions

### Does Prospect Avenue Capital make pure equity investments or primarily use structured instruments?

The firm uses both. Prospect Avenue Capital evaluates growth-stage companies for minority-equity stakes but is structurally able to pivot to convertible notes, preferred equity, or warrants when traditional equity terms cannot be agreed. This flexibility is a legacy of Liao's background in credit, not a recent pivot, and defines the firm's identity. Pure equity deals are done when a company's revenue trajectory supports standard VC pricing.

### What is Prospect Avenue Capital's relationship with broader Chinese private capital markets?

The firm is a domestic Beijing-headquartered manager but has historically raised capital from foreign institutional LPs, including European allocators. That cross-border funding model places it among a cohort of mid-sized independent China managers that must navigate both onshore regulatory complexity and offshore LP expectations. The firm has not publicly announced a RMB-denominated fund.

### What sectors does Prospect Avenue Capital explicitly avoid?

The firm does not publish a negative sector list. But based on its disclosed activity and team expertise, it is not known to invest in consumer internet, heavy manufacturing, real estate development, or companies with state-linked ownership structures. The focus stays on enterprise software, fintech, and healthcare technology where growth can be modeled on ARR or revenue multiples rather than on gross merchandise volume.

### How does Prospect Avenue Capital structure downside protection?

The firm structures downside through convertible instruments with ratchet mechanisms, liquidation preferences, and occasionally collateralized terms when dealing with asset-heavy technology companies. This is an unusual skill set for a manager with a venture mandate: the team can hold a portion of the investment in instruments that outperform common stock in flat or down exits, creating an asymmetric risk profile that LPs in standard China VC funds do not receive.

## Related profiles

- [ProPE Beijing Venture Capital](https://altss.com/profile/prope-beijing-venture-capital)
- [Prosper Oak Capital](https://altss.com/profile/prosper-oak-capital)

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Last updated: 2026-06-03T20:00:00.000Z

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