Patrick Liu of Broadfield Hong Kong contributed the Hong Kong chapter to Lexology’s 2026 Private Equity (Fund Formation) Panoramic guide, offering a comprehensive overview of the key legal and regulatory considerations for fund managers and investors operating in the jurisdiction.
The guide covers the full lifecycle of a Hong Kong private equity fund, from formation to dissolution. The Limited Partnership Fund Ordinance (LPFO), operational since August 2020, provides the primary framework for fund formation, enabling private funds to register as limited partnerships in Hong Kong. The LPFO offers a flexible structure that delineates the rights and responsibilities of general and limited partners, and permits re-domiciliation of overseas funds into Hong Kong, increasingly relevant as managers look to establish a local presence in light of the tax incentives.
On the regulatory side, the Securities and Futures Commission (SFC) plays a central oversight role. Fund managers must navigate licensing requirements, conduct obligations, and ongoing reporting duties. The guide also addresses investor restrictions, anti-money laundering obligations, and the conditions under which private equity funds may be offered without full regulatory authorisation.
From a tax perspective, Hong Kong’s territorial tax system and its profits tax exemption for qualifying transactions make it an attractive base for fund managers. The guide also highlights a November 2024 consultation paper proposing meaningful enhancements to carried interest tax concessions. If enacted, these changes would extend benefits to a wider range of strategies including hedge funds, venture capital, and private credit.
Hong Kong continues to establish itself as a leading hub for private equity fund formation, supported by a clear regulatory framework, a favourable tax environment, and active government investment. Against this backdrop, Patrick’s contribution reflects Broadfield’s deep expertise in advising fund managers and investors on structuring and operating private equity funds.
About Broadfield:
Founded in 2024, Broadfield is an international law firm dedicated to the highest-quality, multi-faceted value-driven legal services. Combining local insight with global resources, Broadfield offers innovative solutions tailored to the needs of clients across industries and jurisdictions. With presence in the United Kingdom and Hong Kong, Broadfield’s growing team of over 400 professionals is committed to fostering long-term client relationships based on trust and excellence.
About Liu, Patrick Ling & Co. LLP
PLL is a Hong Kong-based law firm specializing in investment fund formation, private equity and venture capital M&A transactions, disputes resolution and restructuring services. PLL offers unparalleled regional expertise backed by global resources and delivers tailored, client-centric solutions to meet the region’s complex demands. PLL operates in association with Broadfield.
About SHP Legal Services (SHPLS):
Founded in 2024, SHPLS provides strategic support to law firms, offering solutions in technology, operations, and talent acquisition. As a subsidiary of LSS Strategic Partners, LLC, an A&M Inc. company, SHPLS is dedicated to driving innovation, operational efficiency, and sustainable growth in the legal sector.
