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The Limited Partnership Fund Ordinance comes into operation

  • Hong Kong
  • Investment funds and asset management
  • Financial institutions

31-08-2020

The long awaited Limited Partnership Fund Ordinance comes into operation today, adding a vital new structure to the array of Hong Kong fund structures available to asset managers. Close-ended investment funds, particularly private equity and venture capital (“PE/VC”) funds, are expected to be the main beneficiaries of the limited partnership fund (“LPF”) structure. With the greater China and Asia market more generally remaining one of the most robust growth centers globally, the LPF structure is an attractive option for Asian PE/VC fund managers.

In our four-part series analyzing some of the more important elements of the LPF, we have demonstrated that the LPF structure is equal to, and in certain regards, better than, comparable structures offered by the Cayman Islands and Singapore.

Hong Kong offers one other key advantage over the Cayman Islands in addition to a world class fund structure, which is that it will also satisfy international demands to prevent base erosion and profit shifting. We see the introduction of the LPF as an opportune occasion for PE/VC funds to reassess their traditional use of Cayman-domiciled fund vehicles.

To read our full series, please use the below links:

Part 1How does Hong Kong match up to the Cayman Islands and Singapore?

Part 2LPF Registration 101

Part 3Safe harbors for limited partners

Part 4So long, partner-ship – dissolution and winding up options

Please contact Paul Moloney or Helen Wang if you would like to discuss utilizing the new LPF.