Investment funds in Hong Kong

With strong local knowledge and also able to integrate cutting-edge techniques and know-how gleaned from the firm’s experience across other jurisdictions, Clifford Chance‘s Hong Kong office is a popular choice among fund sponsors seeking guidance across the range of open and closed-ended funds. Clients also gain comfort in the knowledge that the team has ‘very strong regulatory capabilities’ and benefits from a good working relationship with the relevant supervisory bodies. Team head Mark Shipman is a ‘market leader‘ in the space; as well as his role as a trusted advisor to financial services entities on standalone fund formation mandates, he is also regularly engaged by numerous trade bodies/committees to provide high-level insight into regulatory matters. Matthias Feldmann excels in open-ended funds and has been at the forefront of the establishment of many of the largest hedge fund launches in the region. Splitting his time between the firm’s Beijing and Shanghai offices, Ying White rounds out the firm’s Greater China offering at a senior level and has a particularly strong reputation among PRC financial institutions in relation to the structuring, establishment and operations of offshore private equity and hedge funds.

A mainstay of the local market, independent heavyweight firm Deacons is a popular choice among regional and international asset managers across a range of structuring, regulatory and ongoing operational work. Although it does handle some alternative funds matters, the team’s undoubted sweet-spot lies in the retail space and in this context it is ‘unmatched in its ability‘ to achieve the necessary regulatory authorisation, including in relation to Securities and Futures Commission (SFC) authorised Environmental, Social and Corporate Governance (ESG) funds. ‘Helpful and client-friendly’ team head Jeremy Lam oversees a vast array of retail funds offered in the Hong Kong market and is also appreciated for his ability to coalesce his legal and regulatory knowledge to good effect. Taylor Hui leads the China team and benefits from many years’ experience advising PRC fund managers on fund establishment in Hong Kong and on bringing RMB investment products into the Hong Kong market. ‘Familiar with all the latest trends’, Ming Chiu Li is also focused on China-related mandates particularly on bringing innovative fund products to the market.

While it is more one dimensional in scope than some of its peers, few in the market come close to matching Debevoise & Plimpton LLP for the quality of work it provides in the private equity fund formation sphere. The firm’s position at the pinnacle of the market is reflected in the calibre and range of clients it acts for, including many of the region’s largest and most sophisticated pan-Asian sponsor clients, as well as smaller sector or country-specific funds. In addition to fundraising, the team, which is led by the ‘technically brilliant’ Gavin Anderson , also advises on managed accounts, joint ventures, co-investments, carried interest planning and complex secondary transactions and investor-side negotiations. ‘Reliable, hardworking and creative’ international counsel Mai Shapiro is a pivotal member of the team, in light of her tax structuring aptitude, both on the intitial fund structuring front, as well as in the context of subsequent downstream investment work. Of counsel Andrew Ostrognai  is also recommended.

Acting on its own, as well as able to deploy additional resources from across its global network, including London and the US, the ‘experienced and knowledgeable‘ team at Kirkland & Ellis has a market-leading reputation across the spectrum of private equity work, including on fund structuring, co-investments, recapitalisations and secondaries. The firm receives a tremendous flow of mandates from both local sponsor clients, including Legend Capital, Long Hill Capital Partners and Tencent, and from core institutional international sponsors raising funds in the region. Justin Dolling has a primary focus on fund structuring for GP clients, however, his broader knowledge of the private equity ecosystem ensures that he also picks up work on the restructuring of funds, and buy-outs and spin-offs relating to the management houses. Mandarin-speaking China, Hong Kong and US-qualified “triple threat” Carol Liu leads the China private funds sub-group and has substantial expertise advising on the formation of an array of private funds across asset classes and strategies, including venture, growth, buy-out, real estate, infrastructure, secondary and private credit funds. Damian Jacobs is the other principal contact within the team, whose broad-ranging practice also includes a considerable amount of secondaries work.

Akin Gump Strauss Hauer & Feld LLP's one-partner team, led by Anne-Marie Godfrey, punches above-its-weight, due, in part, by its ability to work in an integrated fashion with practitioners based in situ in several key fund jurisdictions, including Singapore, New York and London. It is regularly instructed by a broad coverage of stakeholders in the funds space, including asset managers, trustees, custodians and institutional investors. The team is best-known for its hedge fund expertise, and is also active in the closed-end space, including in relation to offshore China and China-oriented US dollar private equity funds, as well as Hong Kong-based credit funds.

Led by Michael Wong, Dechert provides ‘professional and pragmatic advice’ to hedge, private equity and registered funds.  The team has been particularly successful in gaining significant market share for China-based hedge fund managers, which are appreciative of its ability to provide Hong Kong, US and European regulatory advice – of particular importance for managers offering their funds in Europe and the US. Clients also benefit from the office’s ability to leverage the expertise of practitioners spread across the firm’s international network on cross-border mandates.

DLA Piper has a strong reputation advising a sponsor/fund manager-focused client base on the establishment of some very sizeable alternative investment funds. Although it is well-versed across the panoply of alternative asset/investment classes, including private equity, venture capital and hedge funds, the team has recently been particularly active in advising regional fund managers on the establishment of real estate credit funds, an area of notable growth in the market as banks have decreased their lending activity in the sector. The firm has also begun to grow its investor profile and has recently advised UBS Asset Management Switzerland on its investment in GLP Japan Income Fund, one of the largest private open-ended logistics real estate income funds. Vastly experienced team head Luke Gannon is particularly experienced in advising GPs and LP investors across a range of mandates, including real estate, digital technologies and securities.

With a sizeable team in Hong Kong and able to tap into the expertise of lawyers based in key international fund centres, including London, Luxembourg and New York, Goodwin is regularly instructed on fund structuring mandates with a cross-border complexion. The alternative fund sector is the firm’s sweet spot, including private equity and credit funds, while the firm’s overarching tech and life sciences proficiency ensure that it picks up a considerable amount of venture capital and growth capital mandates in the space. ‘Calm, practical and approachable’ team head Gregory Barclay is recommended for advising on the establishment of closed-end fund structures and strategies, and advising fund managers in the region drawing in capital from a global investor client base. Phil Culhane and native Mandarin speaker Elyn Xing joined the team in October 2021 from boutique firm Culhane & Associates LLP and Debevoise & Plimpton LLP respectively; both with a wealth of experience in advising private funds operating in Asia and beyond.

Led by the ‘solutions-oriented’ Serena Tan and Nicholas Sheets, Morrison Foerster‘s 13-strong team has the depth of knowledge to handle a significant range and volume of work for a GP-focused client base within the closed-end alternative fund space. It acts for some large global funds on their Asia-focused work, and is particularly prolific in advising regional private equity and venture capital funds, including Hony Capital and Soft Bank Ventures Asia. It also handles investor work and has strong relationships with numerous leading regional insurance companies, acting in their capacity as LPs. Tan ‘is a leading Chinese speaking fund formation lawyer’ and is highly recommended for advising in the formation of, and investment in, private funds (including USD funds, RMB funds, and dual-currency funds).

Led by the ‘hardworking, tenacious and knowledgeable’ Lorna Xin Chen, Shearman & Sterling has developed a particularly impressive reputation advising institutional investors, including regional sovereign wealth funds investing into a myriad private funds, as well as in cross-border co-investment projects. It is also very adept at handling fund structuring work for GP clients, as well as on the attendant operational work. Chen is involved with numerous major industry associations and is consequently well attuned to market trends and regulatory changes, including on regulatory reform issues relating to the private equity industry. Sean Murphy joined Cooley LLP‘s Singapore office in January 2021.

Leveraging its strong ties with many regional asset managers and institutional investors, White & Case is adept at handling open and closed- ended funds structuring work for a balanced mix of GP and LP client base. The ‘business and legally savvy’ Anthony Wong heads the team and his prior M&A/private equity background enables the practice to effectively service both GP and LP clients in downstream co-investment, project fund and secondaries work. Counsel Ilan Wong‘s arrival in March 2021 from Ropes & Gray LLP bolsters the team on the investor side, in light of her strong ties with institutional investors throughout Asia, Europe and North America.

Acting on a standalone basis and also forming an integral part of the firm’s broader global investment funds offering – which includes key offices in Singapore and London, Ashurst’s Hong Kong team advises sponsors and investors across the gamut of transactional and regulatory issues associated with private closed-end funds. The team is particularly accomplished at structuring funds in heavily regulated sectors, including infrastructure and healthcare. ‘Responsive’ team head Dean Moroz focuses on advising GP clients on fund structuring, co-investment platforms and JVs, as well as acting for institutional clients, including sovereign wealth funds and pension funds on their pan-Asian investments.

Strengthened by the arrival of ‘innovative thinker’ Scott Peterman and the ‘commercial’ Sook Young Yeu, from Orrick, Herrington & Sutcliffe LLP in August 2020, K&L Gates is increasingly well-positioned to provide ‘expert advice with up-to-date understanding of market trends at a cost-effective rate’. The team handles both LP and manager mandates and is ‘particularly strong in the private equity space’. Asia managing partner David Tang heads the team.