Chicago-based Adams Street Partners launched its Hong Kong office on Monday, joining a wave of Western investment firms setting up to take advantage of the city’s position as a gateway to international capital and cross-border deal making.
“There’s an increasing number of private equity firms, growth equity [and] venture capital, that have a reason to be here in Hong Kong – kind of a Hong Kong nexus,” said Jeffrey Diehl, the firm’s managing partner and head of investments, in an interview.
With more companies establishing a presence in Hong Kong, either by setting up operations or preparing to list on the city’s stock exchange, opening an office in the city made sense, he added. “We want to be closer to both our investors and the investment opportunities that are presenting themselves here,” he said.
The office, to be staffed by three investment professionals, joins a worldwide network of 15, including Asia-Pacific locations in Beijing, Seoul, Singapore, Sydney and Tokyo. Globally, the firm manages US$65 billion in assets.
Hong Kong has rebounded from its quiet days during the Covid-19 pandemic, with capital market financing proceeds rising 2.6 times year on year as of late October, according to JPMorgan. Equity capital raised in Hong Kong reached HK$422 billion (US$54 billion), representing the highest level since 2021.
Assets under management in Hong Kong also climbed to HK$35.14 trillion in 2024, just shy of the all-time high of HK$35.55 trillion recorded in 2021. The rebound was supported by a surge in net fund inflows, which rose 81 per cent from a year earlier to HK$705 billion.
