Over the past two decades, the improving business environment and the opening up of the financial sector have boosted the growth of the private equity (PE) industry. PE firms have increased confidence in the China market and been increasing investment stake in China. Moreover, domestic PE firms are gaining a strong ground and expanding overseas.
Along with the growth, we also observe PE operations have been facing the following challenges:
- Various regional incorporation and compliance requirements across China
- Complex tax and financial incentive programs by local governments
- Practical variations over cross-border transaction registration and filing
The PE fund is experiencing a situation where the development of professional services, particularly supporting services for mid-office and back-office processes, is relatively lagging behind the industry development. Among most of the mid-office and back-office processes, fund formation and compliance, taxation, as well as cross-border investments and exit are the three China-specific areas that many private fund managers would like to focus on.
With years of experience in serving PE firms in China, this white paper highlights some of the insights and views on these three areas from our team of experts.