Abstract: Recently in China, industrial investment fund as a new kind of investment tool has played an increasingly important role in enriching the endowments of certain industries and stimulating certain industries. Past literature lacks discussion on the role that industrial investment fund play in the adjustment of industry structure. Considering investment purpose, we start with two modes of the industry fund: financing and M&A. We study the impact on industry structure based on the search and matching idea. Using the search and matching model, we find the industry fund with M&A will get better matching results for both sides of the investment. Besides, we analyze the relationship between the industrial investment fund and the adjustment of the industrial structure from the perspective of industry specialization and diversification. The results show M&A mode contributes to industry specialization while decreasing industry diversification and relatively financing mode contributes to industry diversification.