Taiwan’s Financial Supervisory Commission will allow private equity funds to be operated by securities investment trust and consulting firms (SITCs) for the first time, as it seeks to encourage domestic LPs to invest in public infrastructure and renewable projects, the regulator said.
Currently, investment funds managed by a SITC are limited to investing in publicly listed securities. The new rule, however, will allow SITCs to acquire stakes in infrastructure projects.
The private equity funds set up by a SITC must be structured as a limited partnership. The GP should be represented by a subsidiary of the SITC, which would manage and invest LPs’ capital to avoid conflicts of interest between the SITC and the private equity fund, the regulator said.
The private equity fund offerings cannot be generally advertised, according to Taiwan’s Financial Consumer Protection Act.
The regulator began accepting applications this week, with JPMorgan Asset Management Taiwan and Cathay Securities Investment Trust said to be early applicants, the Taipei Times reported.