Asia's high growth, and Hong Kong's strategic position within the region, make the city the ideal Asian hub for regional and international private equity (PE) activities.
According to the Hong Kong Venture Capital and Private Equity Association (HKVCA), with about US$60 billion, the city is home to the largest available pool of capital for private equity investment in the Asia-Pacific region.
The figure has grown from virtually nothing in 1997, following the Asian financial crisis which sparked the growth in private equity investments.
However, as HKVCA co-president Chia Kok-onn points out, only a small part of this money is actually invested in Hong Kong, which acts as a regional entrepot rather than a destination for investment.
'Hong Kong has nearly all the necessary ingredients to attract and administer PE funding,' Chia says.
Highlighting Hong Kong's strengths, he says conducive laws and tax regulations, technical, banking and financial expertise, and a pool of PE professionals and entrepreneurs are vital requirements to execute and maintain deal flows.