Why we chose the Hong Kong LPF

Where you domicile a fund is not an administrative detail. It is a statement about whose trust you are trying to earn and which problems you intend to solve. For a fund that has to satisfy Nordic institutional standards on one side and reach Hong Kong capital and markets on the other, the choice of home is the first real test of the strategy. We chose the Hong Kong Limited Partnership Fund, and the reasoning is worth being explicit about.

Start with what Nordic investors need: a system they recognise and trust. Hong Kong runs on common law, operates in English, and offers free movement of capital and a long-established framework for private funds. Capital can come in, and — just as importantly for a Nordic limited partner — returns can be cleanly repatriated. None of that can be taken for granted in a cross-border Hong Kong structure, and all of it is foundational to trust.

Then the Hong Kong side: Hong Kong is not a neutral island bolted onto the mainland but a genuine gateway to it, including the Greater Bay Area. It lets offshore Hong Kong capital be deployed and lets the fund sit close to the market its portfolio companies are trying to enter.

The LPF regime itself, introduced in 2020, was purpose-built for this kind of work. It is a flexible, internationally recognised private-equity and venture structure, designed expressly to channel capital into innovation companies. It is tax-efficient — qualifying funds benefit from profits tax exemption, and eligible carried interest from a concession — without the offshore opacity that makes sophisticated investors uneasy. And Hong Kong's standing as one of the world's leading IPO markets gives the fund a natural, credible exit path rather than a theoretical one.

We considered the usual alternatives. Each solves one side of the problem and not the other. Hong Kong is the rare domicile that speaks to both — Western-standard trust and direct Hong Kong access in the same jurisdiction.

One last point on how we use it. We are not raising a large blind-pool fund on day one. We begin with a selective, deal-by-deal syndicate model to establish a track record, and transition to the full LPF once the bridge is proven. The structure is chosen for where we are going; the sequencing is chosen for where we are.