New HK LP funds tipped to attract China state capital

There are still issues to be resolved in respect of Hong Kong’s planned limited partnership for funds (LPF), for which a proposal is due to be submitted in the first half of this year. Perhaps the biggest question is to what extent tax concessions will be applied to carried interest under the regime. Alternative investment managers would be more inclined to make use of the LPF structure if it offered substantial tax relief – but that may not be the only attraction of the new frame…