Jack Ma, China’s most iconic entrepreneur, whose swift fall from grace with government authorities captivated the country and broader business world, has a new problem: Chinese investors are afraid to give him money.

Yunfeng Capital, a private equity firm Ma co-founded in 2010, is having difficulty raising capital from domestic investors concerned about the political risks of backing him, raising questions about its long-term viability, according to three people briefed by the firm’s managers and its existing investors. Yunfeng is one of the country’s most important tech-focused investors, with more than $10 billion in assets under management, according to Chinese media reports. Its previously unreported struggles could aid rival firms such as Sequoia Capital’s China affiliate, Hillhouse Capital Group and Source Code Capital if domestic tech investments recover from a recent downturn.