Tiang & Partners advises on the launch of a Hong Kong umbrella Open-ended Fund with its first sub-fund structured as a closed-ended PE fund

March 2022

Tiang & Partners has recently advised our client on the successful launch of their first Open-ended Fund Company ("OFC"), with its first sub-fund structured as a typical closed-ended PE fund.

Tiang & Partners worked closely with PwC Hong Kong Tax team (Fund Tax advisor) to provide a novel approach which allows the client to take advantage of both the OFC subsidy from the Securities and Futures Commission (“SFC”), and Carried Interest Concession under the Hong Kong Inland Revenue Ordinance (“IRO”). Tiang & Partners acted as the legal counsel to the client, advising on the fund structuring, operations, regulatory issues as well as drafting all the fund documents.

The Tiang & Partners team was led by Gaven Cheong (Partner, Head of Investment Funds) and supported by David Law (Senior Solicitor) and Stephanie Chen (Solicitor). The PwC Hong Kong Tax team was led by Rex Ho (Partner).

Commenting on the deal, Gaven said, “We are very excited to have supported our client on this project, which demonstrates Tiang & Partners’ unique strength in working with the PwC network to provide integrated advice and seamless support to fund managers from a legal, regulatory and tax perspective. Our in-depth industry knowledge and expertise in specialist areas allow us to advise on a full range of issues relevant to hedge funds, private equity, crypto, real estate and hybrid funds.”