Smart News | Hong Kong ups its PE investment creds
Smart News | Hong Kong ups its PE investment creds
Hong Kong is one of the key jurisdictions for raising private equity (PE) funds in Asia. Many of these investments have traditionally been structured through funds located in one of the offshore jurisdictions.
The government has in recent years made efforts to make Hong Kong a more attractive location for establishing private equity funds. It has introduced a limited partnership fund structure specifically targeting PE funds and enacted new regulations governing open-ended fund companies (OFC). Hong Kong has also announced financial incentives for PE funds that onshore their investment vehicles. Finally it has adopted favourable tax policies including a tax exemption for carried interest.
These initiatives have increased Hong Kong’s appeal to PE funds looking for a favourable jurisdiction to set up in. You can discover some of these recent initiatives in our latest newsletter prepared by Nicolas Vanderchmitt, Partner, and Erik Leyssens, Of Counsel from our Hong Kong office.