Fuelling Startup Success: Attracting and Cultivating Home-based Alternative Investment Funds
10 Jun 2025
As global investment preferences shift towards private markets, Hong Kong has solidified its position as a cornerstone of this dynamic landscape. As of June 2024, Hong Kong ranks second in Asia and fifth globally, with fund managers overseeing US$240 billion in assets under management across private equity, venture capital, and private debt (including private credit). A robust private market enables the city to capitalise on the powerful interplay between capital formation and entrepreneurial ventures. Startups, scale-ups, and innovative technologies increasingly rely on private capital to drive growth, and Hong Kong’s vibrant investment landscape provides a strong foundation to support this momentum, fuelling innovation, growth, and economic resilience in the Asia-Pacific region and beyond.
Despite these strengths, persistent gaps remain—particularly in funding early-stage ventures, commercialising innovation, and refining regulatory frameworks for alternative investments. These challenges point to a need for stronger collaboration among stakeholders to build a dynamic, inclusive, and future-ready alternative investment ecosystem. As a leading international financial hub, Hong Kong is uniquely positioned to bridge these divides and elevate its leadership in the private markets sector.