Paris-based private equity firm Ardian has opened a 4,000 sq ft office in Hong Kong’s main business district to grow its $3 billion investment out of its $200 billion in assets under management. The new office marks the company’s fifth location in Asia and will initially have eight permanent staff.
The company aims to be close to its investors, including important insurance companies, to further develop in Hong Kong. Private wealth is a significant source of capital for the secondary business. Ardian has about 50 long-standing clients in the Greater China region, including insurance firms, sovereign wealth funds, private wealth investors, and endowments.
Ardian’s expansion reflects the robust growth in Hong Kong’s private banking and wealth management sectors. Major private banks have seen a 14% rise in assets under management in the first half of the year. However, 17.1% of the city’s prime offices were empty in the third quarter, with the number likely to hit a record 19% by year-end.
Despite office vacancies, the Hong Kong stock market has topped global rankings for initial public offerings, with 66 companies raising $23.27 billion on the main board in the first nine months of the year. The government continues to attract affluent investors through its cash-for-residency scheme.
Ardian’s decision to establish an office in Central was driven by the falling office rental prices in Hong Kong. The company sees great potential to double investments from Hong Kong-based clients by next year. The office location in Central provides proximity to peers, investment banks, lawyers, and a view of Victoria Harbour. Ardian sees recent departures as a natural transition, with a commitment to staying in Hong Kong for the next 20-30 years. The firm views Hong Kong as a key opportunity for growth and expansion in the region. This article was originally published in the South China Morning Post, a well-respected source for news in China and Asia. Stay updated with SCMP stories by downloading the SCMP app or following them on Facebook and Twitter.
Read more at Yahoo Finance: European private equity firm Ardian eyes fresh growth at new office in Hong Kong’s Two IFC