Hong Kong Limited Partnership Fund (LPF)

The Hong Kong Limited Partnership Fund (LPF) is a fund structure introduced under the Limited Partnership Fund Ordinance (LPFO), which came into effect on August 31, 2020. This regime allows for the registration and operation of limited partnership funds in Hong Kong, enhancing the region’s attractiveness as a global asset and wealth management hub. It enables fund managers to establish and manage investment funds in a limited partnership format, offering a vehicle that is competitive with similar structures in other jurisdictions.

Key Features: 

• No separate legal entity
• No minimum capital requirement
• No regulatory restriction on the investment scope, strategy and number of investors
• Freedom to conclude contracts among partners

Advantages:

Hong Kong Open-Ended Fund Company (OFC)

An Open-Ended Fund Company (OFC) is a structure for investment funds established in Hong Kong, introduced to enhance Hong Kong’s competitiveness as a global asset management center. It complements the existing unit trust structure, providing a new, corporate alternative for fund managers who wish to domicile their funds in Hong Kong. As an open-ended structure, it allows investors to subscribe and redeem shares at their net asset value on an ongoing basis. The OFC regime supports various investment strategies and is well-suited for both public and private funds, including hedge funds, private equity funds, and real estate funds.

Key Features:

• An investment fund structured in corporate form
• Not subject to restrictions under Companies Ordinance on capital reduction and distribution out of capital
• Can be used for both listed or unlisted funds
• Can be used for both public and private funds
• Can be used for closed-ended funds

Advantages:

• Cost-savings over offshore structure, including management time and costs by dealing with one jurisdiction instead of two
• Can be used for different types of fund, including public, private, open-ended, closed-ended, listed or unlisted funds
• Tax incentives, with profits tax exemptions