Landmark Limited Partnership Fund Regime

The ACC Hong Kong Board of Directors invites you to the following presentation, jointly delivered by Sidley Austin. 

On 31 August 2020, Hong Kong will introduce a Landmark Limited Partnership Fund (LPF) Regime which will be enacted as the Limited Partnership Ordinance (Cap 367).

A range of important regulatory, licensing, and tax implications will flow from the LPF Regime in Hong Kong. These will have a significant impact on private fund managers who use traditional offshore fund structures, including those domiciled in the Cayman Islands. With the passing of the legislation, this long-anticipated development will fundamentally change the way private funds are structured in Hong Kong.

The LPF Regime will provide a much-needed option for private funds to be established in Hong Kong. The landmark legislation will have far reaching implications for private equity, venture capital, real estate, infrastructure, credit and special situations funds that traditionally use a limited partnership form.

The regulatory reform is a vitally important aspect of the continuing development of Hong Kong as a globally competitive asset and wealth management center. Local and international fund managers are expected to make wide use of the regime with significant interest already evident in the market to adopt the LPF for upcoming fund launches, replacing traditional offshore structures such as the Cayman limited partnership.

Why use an LPF?

• What are benefits of an onshore vehicle over traditional offshore alternatives?
• Why move onshore?

How to establish an LPF?

• Legal structure
• Registration and timeline
• Audit, administration, custody and ongoing compliance

What are the tax implications of using an LPF?

• Hong Kong Unified Fund Tax Exemption Regime and its application to the new LPF regime
• Stamp duty and capital duty implications

What types of funds and investments are suited to the LPF?

SPEAKER:

Effie is a member of Sidley’s Executive Committee and a co-leader of the global Investment Funds Group. She focuses on investment fund formation transactions, particularly the development of innovative investment fund structures and financial products, including private equity funds, real estate, infrastructure, credit and hedge fund arrangements. Effie has been recognized as a leading authority in the private fund formation area in Asia for many years by Chambers Asia-Pacific, IFLR 1000, Legal 500 Asia Pacific, AsiaLaw Profiles, and the International Who’s Who of Business Lawyers. Euromoney Legal Media Group, 100 Women in Finance and IFLR1000 Asia Best Lawyers have each conferred industry leadership awards in recognition of her leadership and achievement in the fund management industry in Asia over many years. She has also been listed by Legal Media Group’s Expert Guides as one of the world’s leading lawyers for investment funds.