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UG Investment eyes onshore growth in Taiwan with long short strategy
UG Investment has a $3.7bn hedge fund manager footprint and last month completed its first distribution partnership with E.Sun Commercial Bank to sell to Taiwanese investors under existing rules for alternative products.
Singapore-based hedge fund manager UG Investment Advisers is targeting Taiwan’s growing pool of wealthy investors, aiming to raise onshore capital as the island’s artificial intelligence boom creates new private fortunes, according to Bloomberg and summarized by Hedgeweek.
UG Investment, a $3.7bn manager, said it has signed an agreement with E.Sun Commercial Bank to distribute one of its long-short equity strategies to Taiwanese investors. The deal was completed last month and marks UG Investment’s first distribution partnership with a domestic bank, following its history of sourcing capital offshore, including from family offices across Asia and Europe.
Hedgeweek reports that Taiwanese banks and asset managers are increasingly looking to alternative investment products for high-net-worth clients as demand for semiconductors and other technology businesses strengthens the local economy and stock market. Other international managers have also entered Taiwan’s wealth-management market, including Carlyle via Cathay United Bank and Ardian via CTBC Bank.
Under Taiwan’s current rules, offshore hedge funds, private equity, and private credit products must be distributed to individuals through licensed banks or asset managers, and funds are capped at 99 investors. Participants must hold at least TWD30m, or about $953,000, and the Financial Supervisory Commission has signaled it intends to ease some restrictions as demand grows; private funds sold to high-net-worth investors account for a small share of the market, with outstanding value of TWD7.38bn earlier this year, about 0.3% of wealthy-client assets.