On 20 March 2020, the Hong Kong Government published its long-awaited Limited Partnership Fund Bill to attract more private equity and venture capital funds to establish and operate in Hong Kong. Hong Kong has the second-largest private equity market in Asia, trailing only behind Mainland China.
In recent years, private equity funds have been playing a pivotal role in channelling much needed capital into corporates, especially start-ups in the innovation and technology field. The new limited partnership fund (“LPF”) regime will be an opt-in registration scheme administered by the Companies Registry. Although the Hong Kong private funds industry has traditionally relied on investment vehicles incorporated in offshore jurisdictions, these offshore jurisdictions inevitably involve a double layer of regulation and administration. THE LPF regime will make a local fund vehicle an attractive alternative.
For more information, please contact Alan Ang firstname.lastname@example.org or your usual Acclime client manager.