Articles

CFN Lawyers LLP is proud to announce that our partners, Keith Yuan and Bowie Fung, has authored the Hong Kong chapter of the 6th Edition of the Legal 500: Alternative Investment Funds Comparative Guide. This prestigious publication showcases leading legal perspectives from around the world, and we are honoured to represent Hong Kong’s evolving alternative investment funds (AIF) landscape.

Their contribution offers a comprehensive overview of the legal and regulatory framework governing AIFs in Hong Kong. The chapter provides valuable insights into:

• Fund Structures: Analysis of key vehicles including Limited Partnership Funds (LPFs), Open-ended Fund Companies (OFCs), and offshore structures.
• Investor Protections: Examination of liability safeguards and passive investor roles.
• Market Preferences: Trends in fund structuring across asset classes, with emphasis on Greater China.
• Regulatory Environment: Interpretation of the Securities and Futures Ordinance (SFO) and its implications for fund operations and marketing.
• Liquidity Management: Tools for managing redemption and illiquidity risks.
• Tax Treatment: Overview of the Unified Funds Exemption (UFE) and its impact on fund domiciliation.
• Fee Structures: Commentary on management and performance fee models, including waterfall and hurdle rate mechanisms.
• Licensing & Marketing: Guidance on licensing requirements and marketing strategies for professional and retail investors.
   

The Legal 500 is a leading legal industry research and ranking firm based in London. It has been publishing Comparative Legal Guides for various practice areas for decades, by inviting top-ranked law firms and lawyers from different jurisdictions to share their insights and expertise in specific practice areas.

Mr. Keith Yuan is a seasoned lawyer with over 20 years of legal practice experience. He is qualified to practice law in Mainland China, the Hong Kong SAR, and England & Wales. Mr. Yuan specializes in the establishment and compliance of investment funds, private equity investments, and corporate financing. He has extensive practical experience in fund structuring and transaction execution. Recognized for his expertise in the investment funds sector, Mr. Yuan has been repeatedly ranked as a Highly Recommended Lawyer in the Greater China region by The Legal 500 and IFLR1000.

Bowie Fung is a founding partner of CFN Lawyers LLP.   She has over 20 years of working experiences in advising high net worth individuals, listed companies and licensed corporations in corporate finance, trust establishment, equity and debts investments, M&A, IPO, corporate governance, ESG, regulatory compliance, internal control and company secretarial matters. She is the first batch of lawyers who passed the 2021 Examination for Hong Kong Legal Practitioners to Practise Law in the Greater Bay Area. While devoting to her practising solicitor career, Bowie is also committed to contributing to society. She has been appointed by the Hong Kong Government as a member of the Hong Kong Air Transport Licensing Authority since 2022.  Bowie also acts as the HK Legal Adviser of International Association of Registered Financial Consultants of Hong Kong and Macau, as well as the member of Advisory Board of Global Family Office and Wealth Management Hub (established under the Institute of Knowledge Exchange) of The Hang Seng University of Hong Kong. She is currently a member of the Family Office Practice Committee of the Law Society of Hong Kong. Bowie is awarded as “A List – China's Elite Lawyer” by China Business Law Journal in 5 consecutive years (2019 to 2024).

Paula Yang from the investment fund department of CFN Lawyers LLP has also contributed to the draft.

This milestone reflects CFN Lawyers LLP's commitment to thought leadership in the alternative investment space and our dedication to supporting innovation, inclusive finance, and global capital flows. This milestone underscores our commitment to shaping the future of alternative investments in Hong Kong and beyond.

We extend our sincere thanks to The Legal 500 for the opportunity.

To read the full chapter, please visit: https://www.legal500.com/guides/chapter/hong-kong-alternative-investment-funds/