Adams Street Partners is tracking increasing crosspollination between the Greater China and Southeast Asian private equity ecosystems as it opens a new office in Hong Kong.

Sunil Mishra, a Singapore-based partner at Adams Street, attributed the intra-regional activity in part to a trend of Chinese companies and investors looking to expand into international markets, especially in Southeast Asia.

“Many mainland Chinese businesses are choosing Hong Kong or Singapore as new bases, and the GPs directly investing in those businesses are very focused and thoughtful about how they should be engaging them,” he said.

“GPs that used to work from Singapore are adding Hong Kong coverage, and GPs that used to work from Hong Kong are adding Singapore coverage. As they build their presence across both cities, we want to cover that.”

Adams Street opened its Hong Kong office this week with a view to facilitating interactions and multiplying its touchpoints with Greater China and North Asian private equity fund managers. Mishra emphasised that the move does not signal specific plans to increase investment in the region, although there is a general interest in more exposure to Japan and South Korea.

For the foreseeable future, the opening is effectively a shifting and repositioning of regional resources rather than an expansion. Three existing investment professionals with several years’ experience in Greater China and North Asia will be relocated, most likely from the Beijing and Singapore offices, to comprise the initial Hong Kong team.

The as-yet unidentified professionals will retain their job descriptions and usual duties, but benefit from improved access to Greater China and North Asia fund managers. There are no plans to hire additional staff in the next 12 months. Long-term, the Hong Kong office will likely be built out with additional investment and IR professionals.

It is the firm’s sixth Asia office, including Singapore, Beijing, Seoul, Sydney, and Tokyo. There are more than 20 staff across the region. The Seoul and Tokyo offices are staffed with IR professionals but do not yet have investment professionals.

Adams Street made its first investments in the region in India and China in 2004 and 2005, respectively, going on to open a Singapore base in 2006. The Beijing office was launched in 2011, followed sequentially by Tokyo, Seoul, and Sydney.

The opening extends a spate of global investors setting up shop in Hong Kong in the recent term, notably Ardian and Partners Group. It also coincides with improved sentiment for China buoyed by rising domestic IPO markets and a perceived uptick in private equity appetite.

“The warming we’re seeing in the public and private markets is a step in the right direction. It gives investors confidence that the policy stability is there, and that GPs are active,” Mishra said. “So, I think we’re leaning into that trend and sustaining our coverage in the market.”