A US dollar-denominated private equity firm has opened an office in Hong Kong.

Recently, Adams Street Partners held an opening ceremony for its new office in Central, Hong Kong, marking the official debut of the new workspace. According to investment industry sources, the office is located on the 16th floor of Winch Place in Hong Kong. This is the sixth office that Adams Street Partners has opened in Asia.

At the opening ceremony of the new office: Ben Hart, Partner and Head of Investor Relations for Asia at Adams Street Partners (left); Wong Shun-sing, Chief Investment Officer (Private Markets) of the Exchange Fund Investment Office of the Hong Kong Monetary Authority (middle); Jeffrey Diehl, Managing Partner and Head of Global Investments at Adams Street Partners (right)

The venture capital circle is no stranger to this veteran private equity firm. Dating back to 1972, the predecessor of Adams Street Partners established the world's first private equity fund - of - funds, earning it the reputation of being the "pioneer of fund - of - funds" in the industry. To date, its total assets under management are approximately $65 billion.

When the global valuation system for technology assets is being reconfigured, the choices of US - dollar funds may just be the prelude to a larger wave.

Managing $460 billion, a veteran PE opens another office in China

Adams Street Partners has left a significant mark in the venture capital and private equity industry.

This veteran PE firm traces its roots back to 1972, when its predecessor was the equity investment department of the First National Bank of Chicago. As early as the 1970s and 1980s, this department made history by establishing the world's first private equity fund - of - funds and participating in the launch of the earliest S - funds, thus earning the title of "pioneer of fund - of - funds" in the industry.

In 1989, Gary P. Brinson, the key figure of the team, spun off the predecessor and established Brinson Partners, which was later acquired by the UBS Group. In 2000, George Spencer and T. Bondurant French, the founding members of Brinson Partners, spun it off from UBS, giving rise to the current Adams Street Partners.

Today, Adams Street Partners manages assets worth $65 billion, covering various investment strategies such as primary market investments, S - funds, growth - stage equity, credit, and co - investments.

"Over the past 15 years, our investment footprint has been mainly concentrated in Beijing, Shanghai, and Hangzhou," said Ben Hart, Head of Investor Relations for Asia at Adams Street Partners. "Establishing an office in Hong Kong now is of great significance. Not only does it present numerous opportunities on its own, but it is also adjacent to Shenzhen, Guangzhou, and the entire Guangdong - Hong Kong - Macao Greater Bay Area - the opportunities are just 'across the road'."

According to investment industry sources, the Hong Kong office of Adams Street Partners is located on the 16th floor of Winch Place in Central, Hong Kong. This is the sixth office of the institution in the Asia - Pacific region, following those in Beijing, Seoul, Singapore, Sydney, and Tokyo. With this addition, the total number of its global offices has increased to 21.

At the opening of its Hong Kong office, Adams Street Partners stated that it is optimistic about the private equity market in Hong Kong and Asia.

"More and more private equity and venture capital firms are flocking to Hong Kong," said Jeffrey Diehl, Managing Partner and Head of Investments at Adams Street Partners. "Currently, many Chinese companies are accelerating their expansion overseas, and Hong Kong is playing a crucial connecting role - the opportunities here are continuously expanding. Setting up an office here is undoubtedly a wise move in line with the trend."

Diehl also revealed that the institution manages assets worth $7.5 billion in Asia, with nearly half of the investments directed towards the Chinese mainland market.

Sunil Mishra, a partner at Adams Street Partners, added, "In the past, we have witnessed significant evolution in the Asian private equity market ecosystem. Investors here highly value quality, corporate governance, and long - term partnerships - these values are highly consistent with our investment philosophy. Establishing an office in Hong Kong will enable us to cooperate more directly with leading fund managers and discover investment opportunities that we believe can create lasting value for our clients."

US - dollar funds are becoming active again

The actions of these PE giants seem familiar as they "vote with their feet" once again.

At the end of last month, Ardian, a veteran European investment institution, officially announced the opening of a new office in Hong Kong to further strengthen its business layout in China and the Asia - Pacific region. According to investment industry sources, the office is located in Two International Finance Centre in Central, Hong Kong.

Initially, Ardian was just a business unit of the multinational insurance company AXA Group. It became independent in 2013 and now manages assets worth $192 billion (approximately RMB 1.3 trillion). Over the years, Ardian has gained a reputation for its S - business. More than a decade ago, Ardian established a team in Beijing.

Similar signals are not isolated. Recall that in June this year, Hans (Shanghai) Private Fund Management Co., Ltd. completed the registration as a private fund manager, with its shareholder being Hines, a globally renowned real - estate operator. Subsequently, Kaide Shipu (Shanghai) Private Equity Investment Fund Partnership (Limited Partnership) completed the fund filing with the Asset Management Association of China. This is an on - shore private equity investment entity under KKR.

A more significant change is quietly taking place in the fundraising segment. US - dollar funds, which had been dormant in the domestic primary market for some time, are regaining their activity. In just a few days, Monolith Capital and Source Code Capital announced the successful fundraising of their dual - currency funds, causing quite a stir in the industry.

It is also reported that Blue Pool Capital, supported by Joseph Tsai, co - founder and chairman of Alibaba Group, has launched a new round of fundraising, aiming to raise $750 million for its funds to directly invest in global consumer, financial, and technology companies, covering the Chinese market.

It can be seen that after a series of adjustments, US - dollar funds are making a comeback to the Chinese market. The driving force behind this return is not only the restoration of market sentiment but also the strategic opportunities arising from the reshaping of the global valuation system for technology assets.

"The world is re - evaluating Chinese technology assets," said more than one foreign investor. Since the beginning of this year, the venture capital circle has clearly felt that foreign limited partners are showing a strong interest in Chinese assets. Research teams from Middle Eastern sovereign wealth funds, Southeast Asian family offices, and European pension funds are conducting intensive research in innovative regions such as the Yangtze River Delta and the Greater Bay Area.

Under the calm surface, the tide may be approaching.

This article is from the WeChat official account "Investment World" (ID: pedaily2012). The author is Wang Lu, and it is published by 36Kr with authorization.