Hong Kong Investment Corporation Limited announces the appointment of fund managers and service provider for asset management administration and related services of the Investment Portfolio under the New Capital Investment Entrant Scheme (December 2024)
(Hong Kong, 30 December) The Hong Kong Investment Corporation Limited (“HKIC”) today announces the appointment of fund managers and service provider for asset management administration and related services (“Administrator”) of the Investment Portfolio (“CIES IP”) under the New Capital Investment Entrant Scheme (“New CIES”).
The HKIC has previously issued Invitation for Proposals (“IFPs”) for fund managers and the relevant service provider for the first batch of capital of the CIES IP under the New CIES. Decision was made to appoint four institutions as the relevant fund managers following the selection process. They are Betatron Venture Group, Inno Angel Fund, MindWorks Capital and Radiant Tech Ventures Limited.
The above fund managers provided concrete Hong Kong development plans in their proposals, illustrating their commitment to the long-term development of Hong Kong. They also demonstrated clear investment strategies with proposed investment themes including low-altitude economy, gerontechnology and smart living technologies, technology-driven cultural and entertainment experience, etc.
For asset management administration and related services, decision was made to appoint BOCI-Prudential Trustee Limited (“BOCI-Prudential”) as the Administrator following the selection process. BOCI-Prudential will issue notifications to the New CIES applicants regarding the capital injection and transfer in the first quarter of 2025, and closely coordinate with the aforesaid fund managers.
The aforementioned IFPs and relevant selection processes were supervised by KPMG, with Clifford Chance providing legal advice.
This inaugural invitation for fund managers and the Administrator for the CIES IP under the New CIES arranged by the HKIC was well received by the market. This demonstrated the market’s confidence in the future development of Hong Kong. The incoming proposals articulated investment areas with significant potential and high quality industry trends. The HKIC looks forward to collaborating with different enterprises and partners in the future, crossing-over with institutions having varying background and strengths, with a view to leveraging the HKIC’s professional acumen and network as well as contributing to the development of Hong Kong’s economy and society.
The Government of the Hong Kong Special Administrative Region announced the details of the New CIES early this year and has started to accept application since 1 March. An eligible applicant under the New CIES must make investment of a minimum of HK$30 million in the permissible investment, including placing HK$3 million into the CIES IP. The HKIC will set up and oversee the management of the CIES IP. The relevant capital will be used to accelerate the promotion of cutting-edge industries or new applications, which are being shaped and at the initial stage of development. According to the latest estimation of the HKIC, the capital size of the CIES IP under the New CIES is expected to be at least HK$600 million by the end of this year. The capital will be evenly allocated to the four appointed fund managers. The relevant investment work will commence in the first quarter of 2025. The HKIC will closely monitor the operation of the CIES IP and make announcements in due course.
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About HKIC
The HKIC was established and is wholly owned by the HKSAR Government. As Patient Capital, it carries a dual mandate - seeking reasonable financial return in the medium to long term through optimizing the use of fiscal reserves, and leveraging its ability to guide and channel capital to build a more vibrant innovation and technology ecosystem and industry chain. The HKIC manages HK$62 billion currently, covering the “Hong Kong Growth Portfolio”, “Greater Bay Area Investment Fund”, “Strategic Tech Fund” and “Co- Investment Fund”. At this stage, it is focusing on three key sectors, namely Hard and Core Technology, Biotech, and New Energy/Green Technology. Visit the website for more information: https://www.hkic.org.hk/