What are possible licensing requirements for private equity?
Private equity funds are generally not licensed but the sponsors may be subject to licensing requirements. Depending on the structure of the sponsor's activities, the applicable license may be for Type 1 (dealing in securities), Type 4 (advising on securities) or Type 9 (asset management).
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SFC Licensing for Asset Managers in Hong Kong
Spotlight on Private Equity
Did You Know…
4 Facts Regarding SFC Licensing
Exemptions
Private Equity
Capital & Financial Requirements
Common Licensing Conditions
Private Equity
Historically, many private equity sponsors operating in Hong Kong did not hold a Type 9 license.
However, the introduction of the limited partnership fund (“LPF”) regime and its corresponding concessionary profits tax rate for carried interest has resulted in the use of LPF structures.
Under an LPF structure where an LPF or its general partner delegate investment discretion to a Hong Kong based asset manager holding a Type 9 license.