Entering the Mainland Private Equity Space Becomes More Difficult Due to Fundraising Barriers; Hong Kong Is Expected to Remain the Asian Headquarter of Many Private Equity Funds

MoFo’s Global Co-Chair of Private Equity Group Marcia Ellis and Private Equity/M&A associate Yilong Luo were quoted in a Ming Pao article titled, “Entering the Mainland private equity space becomes more difficult due to fundraising barriers; Hong Kong is expected to remain the Asian headquarter of many private equity 美富：攻內地私募 融資難度增 料港仍屬很多私募基金亞洲總部.”

According to Marcia’s insights, Hong Kong is anticipated to remain the Asian headquarter of many private equity funds. She foresaw challenges in fundraising due to the changes in the market, and investors avoid getting involved in sensitive industries when participating in investments. She also highlighted the challenges of exiting through the stock market, but she believed that this would also be an opportunity for traders who are adept at handling complex situations to showcase their skills.

Yilong pointed out that the successful privatization of Hollysys by an external private equity fund is a rare example. Marcia mentioned that this is a challenging deal with obstacles like opposition from voting advisers, Glass Lewis and ISS, which resulted in a challenging process for the team to lobby investors.

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