31 July 2020
Hong Kong’s Legislative Council passed the long-awaited Limited Partnership Fund Bill 9 July 2020, with the Limited Partnership Fund Ordinance (“LPFO”) set to take effect 31 August 2020.
Why is this significant? Because prior to the LPFO, there is no suitable investment vehicle for establishing a limited partnership for private equity (“PE”) funds, which is a common structure globally for institutional investors. This is one key reason why PE funds in the region have always been domiciled in the Cayman Islands.
It is thus no overstatement that the LPFO enhances Hong Kong’s chance of being Asia’s premier PE funds hub, particularly as the city is also proposing a tax concession for carried interest issued by PE funds.
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For further information, please contact:
Jet Tang, Partner, Stephenson Harwood
Jet.Tang@shlegal.com
