• There was an uptake in open-ended funds being launched in Q1. This was driven by fund managers based in Hong Kong and Japan, who were looking to take advantage of volatility in the secondary market. At the same time, we identified a drop in deal flow and closings, partially due to investors being unable to conduct on-site due diligence due to COVID-19, as well as uncertainty surrounding valuations.
• During Q2 and moving into Q3, we have seen a solid pipeline of new fund launches, which was particularly apparent in the real estate, pharmaceutical, technology, and infrastructure sectors.
• Regulatory change which has affected the offshore landscape over the last couple of years has been positively received by the Asia market, providing additional assurance and transparency for investors, managers, and for Harneys’ business partners alike.
• BVI and Cayman offer complimentary fund products, with a versatile range of products on offer for every type of manager. With the BVI offering cost-effective and flexible solutions for start-up managers and Cayman remaining the first choice for those managers wanting to attract more institutional investors.
• Domestic fund vehicles in Asia, such as the VCC in Singapore, as well as those under the HK Partnership regime, can happily co-exist with offshore vehicles, and potentially feature in the same fund structure.

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