How private equity firms succeed with the right team

In short

The problem: Despite Hong Kong’s strong appeal as a private equity hub, many new firms underestimate how critical the right talent and operating structure are to meeting regulatory demands, earning LP trust and scaling successfully beyond an initial launch.

The solution: Successfully starting a private equity firm in Hong Kong requires building the right specialist talent across compliance, finance, operations and investor services to establish credibility, meet regulatory expectations and scale with confidence.

The result: Hong Kong’s status as a premier private equity hub creates a time-sensitive opportunity for new fund managers to establish and scale successfully, provided they build the right talent, governance and operational foundations from the outset.

The teams you need when forming a private equity firm

Compliance and regulatory oversight
Finance, fund accounting and reporting
Risk management
Fund operations and middle office
Investor services and client reporting
Transfer agency and investor onboarding
Trade support, settlement and post-trade
Internal audit

Author bio: As Associate Director at Robert Half, Jessica Yeung manages the financial services team covering the finance and accounting, risk and compliance, internal audit and actuarial recruitment services for financial and professional services clients in Hong Kong. Since joining Robert Half in 2013, Jessica has built a strong track record for matching outstanding candidates with companies based on their unique hiring requirements. She also focuses on placing C-suite level roles including Heads of Finance and Heads of Risk and Compliance within the financial services industry. The past few years, Jessica has consistently ranked amongst the most successful Robert Half recruiters in Asia and has proven herself to be an expert within financial services.

As one of Asia’s most established global financial centres, Hong Kong continues to attract the world’s economic elite, and I see this firsthand in my work every day. From private equity and venture capital firms to family offices, sovereign wealth funds and multinational banks, Hong Kong’s deep capital markets, strategic location and favourable business environment make it an exceptionally compelling base for international investment. Its long-standing rule of law, transparent regulatory framework and simple tax regime remain key reasons global investors choose to establish here.

Hong Kong also serves as a gateway to Mainland China and the broader Asia-Pacific region, offering direct access to the world’s second-largest economy. This connectivity is a genuine differentiator and one that continues to set Hong Kong apart from other financial hubs in the region.

Private equity is a core part of Hong Kong’s financial ecosystem. The city has around 650 private equity and venture capital firms operating locally, making it one of the largest private fund ecosystems in Asia outside Mainland China.

If you’re considering Hong Kong as an investment destination, you should be. With many international fund managers already establishing a presence in Hong Kong and broadening their focus, it’s time to strike while the iron is hot.

If you are wondering how to start a private equity firm and what talent you need to succeed, this guide is for you. I will walk through the key roles required in private equity, explain why they matter, and show how the right team can sharpen your competitive edge.

How to start a successful private equity firm in Hong Kong

A comprehensive business plan and strong capital backing are essential, but they are not enough on their own. In my experience, people are the defining factor in whether a private equity firm establishes itself successfully or struggles to scale.

I am an Associate Director at Robert Half Hong Kong and have spent more than a decade recruiting across financial services. One thing is clear: the right talent goes a long way in establishing and elevating a private equity firm.

Hong Kong’s private equity market is dynamic and competitive. The right team helps firms navigate regulatory complexity, investor expectations and operational pressure, all while remaining focused on performance. My recommendation is always to build a strong talent network early. Recruiting a skilled local team that understands the Hong Kong market can make a meaningful difference when it comes to scaling, maintaining discipline in investment strategy, building regional networks and ensuring strong legal and compliance support.

Below are the key professionals you will need when starting a private equity firm in Hong Kong.

1. Compliance and regulatory oversight

Private equity firms operate in a heavily regulated environment, particularly around investor protection, AML and fund governance. Getting the compliance function right early is essential to meeting regulatory obligations and establishing credibility with investors and regulators alike.

From my perspective, compliance underpins investor confidence, fundraising momentum and long-term scalability. Firms that treat compliance as a strategic function early are far better positioned to grow without disruption.

The core roles needed are:

General Compliance Associate/Manager

Senior General Compliance Manager

General Compliance Director

Head of Compliance/Chief Compliance Officer

Why?

To design and maintain the firm’s compliance framework (licensing, codes of conduct, conflicts of interest).

To ensure compliance with AML, KYC, investor onboarding and ongoing monitoring.

To liaise with regulators and manage regulatory filings.

To support fundraising by meeting institutional investor due diligence expectations.

In early-stage firms, responsibilities are often consolidated under a Head of Compliance or Chief Compliance Officer. However, I often caution firms against underestimating the workload. Stretching compliance too thin can quickly become a bottleneck during fundraising or regulatory reviews, and building the right capability early avoids costly fixes later.

2. Finance, fund accounting and reporting

Critical for credibility with Limited Partners (LPs).

Accurate financial reporting sits at the heart of trust, valuation integrity, and successful capital raising in private equity. For Limited Partners (LPs), the finance function is often the clearest signal of whether a firm is institutionally ready.

Strong performance starts with strong reporting. If numbers are late, inconsistent or difficult to reconcile, confidence erodes quickly, regardless of how attractive the strategy looks on paper.

The core roles needed are:

Fund Accountant/Senior Fund Accountant

Assistant Finance Manager

Senior Finance Manager

Finance Director

Chief Financial Officer

Why?

To manage fund NAV calculations, capital calls, distributions and waterfalls.

To oversee portfolio company valuations and financial statements.

To ensure audit readiness and LP reporting accuracy.

To manage cash flow, treasury and financial controls at both fund and management company level.

In the early stages of a private equity firm, the structure is often lean. A Chief Financial Officer supported by a Fund Accountant is usually sufficient to meet regulatory, audit and investor expectations.

What LPs want to see early on is the right senior oversight. A credible CFO paired with a strong fund accountant shows discipline, control and readiness to scale.

3. Risk management

Risk management talent is increasingly non-negotiable for private equity firms, particularly as institutional investors apply bank-like scrutiny to governance and downside protection. While PE firms typically operate with leaner structures than banks, structured risk oversight is still essential.

The core roles needed are:

Risk Management Associate/AVP

Senior Risk Manager

Risk Management VP

Head of Risk Management

Why?

To monitor investment concentration, liquidity risk and leverage.

To oversee operational and counterparty risks.

To support investment committee decision-making with risk assessments.

To satisfy LP governance and ESG expectations.

Smaller firms often embed this under Compliance or Finance initially.

Even in smaller private equity firms, someone needs formal accountability for risk. It doesn’t have to mirror a bank’s structure, but it does need to be deliberate, documented and defensible.

4. Fund operations and middle office

Fund operations and middle-office professionals are critical to keeping a private equity firm operationally scalable and execution-ready. While these roles sit behind the scenes, they underpin everything from deal execution to investor confidence.

Core roles needed

Fund Operations Analyst/Associate

Fund Operations Manager

Fund Operations VP

Head of Fund Operations

Why?

To manage fund structures, SPVs and service providers.

To coordinate administrators, custodians and auditors.

To support transaction execution from close to settlement.

To maintain operational controls as assets and fund complexity grow.

Fund operations is where strategy meets execution. A strong middle office ensures that what is agreed in the investment committee can actually be delivered accurately, efficiently and on time.

Operational maturity is increasingly scrutinised by investors, even in early-stage funds. LPs may back the investment thesis, but they commit capital once they are confident the operational foundation is solid. Weak fund operations is one of the fastest ways to lose investor trust.

5. Investor services and client reporting

Private equity is fundamentally relationship-driven, and that does not stop once capital is deployed. Strong investor services and client reporting functions are needed to maintain trust, support future fundraises and meet institutional expectations.

The core roles needed are:

Client Services Analyst/Associate

Client Services Manager

Client Services VP/Director

Head of Client Services

Why?

To manage LP communications and reporting.

To handle investor queries, notices and fund documentation.

To support fundraising, closings and ongoing investor engagement.

To maintain service standards expected by global LPs.

The investor services team becomes the day-to-day face of the fund. In my experience recruiting these roles, it’s clear that timely communication and consistent reporting are often just as important as investment performance.

Strong client servicing can be a differentiator, particularly for emerging managers. LPs are comparing managers not only on returns, but on how easy they are to work with. Responsive investor services and well-structured reporting signal operational maturity and long-term credibility.

6. Transfer agency and investor onboarding

Transfer agency and investor onboarding functions sit at the intersection of compliance, operations and investor experience. They are responsible for managing investor onboarding, KYC and subscriptions, maintaining accurate investor registers, and ensuring clean, reliable data for capital calls and distributions.

The core roles needed are:

Transfer Agency/Onboarding Analyst/Associate

Transfer Agency/Onboarding Manager

Head of Transfer Agency/Onboarding

Why?

To manage investor onboarding, KYC and subscriptions.

To track investor registers and ownership changes.

To ensure clean data for capital calls and distributions.

For many private equity firms, this function is outsourced in the early stages to specialist administrators. However, as the LP base grows and fund structures become more complex, firms often bring onboarding and transfer agency capabilities in-house.

As scale increases, having direct control over investor data and onboarding workflows becomes a strategic advantage. It allows firms to move faster, respond to LP queries more effectively, and maintain stronger governance.

7. Trade support, settlement and post-trade

Trade support and post-trade functions play a critical role in ensuring execution risk does not undermine investment performance, particularly as private equity strategies expand beyond traditional buy-and-hold models.

The core roles needed are:

Trade Support Analyst/Associate/VP

Settlement Analyst/Associate/VP

Head of Trade Support

Head of Settlement

Why?

To support deal execution, settlements and reconciliations.

To ensure timely and accurate transaction processing.

To manage counterparties and custodians.

As private equity firms move into credit, secondaries, and hybrid strategies, operational execution becomes just as important as the investment thesis. A delayed settlement or reconciliation issue can quickly erode trust with investors and counterparties.

8. Internal audit

Internal audit plays a critical role in establishing credibility and trust, particularly as a private equity firms scale and engage with institutional investors.

The core roles needed are:

Auditor/Audit Manager

Senior Audit Manager

Head of Internal Audit

Chief Auditor

Why?

To independently test controls, governance and processes.

To support regulatory inspections and LP due diligence.

To identify operational and compliance gaps early.

For private equity firms, internal audit is less about box-ticking and more about proving that decision-making, controls and oversight are robust enough to stand up to regulatory scrutiny and investor expectations.

Practical takeaway: minimum viable PE team

When launching a private equity firm, the priority is not scale but credibility. Most successful PE launches focus on a lean but defensible operating model that satisfies regulators, investors and service providers without overbuilding too early.

At launch, most PE firms cover essentials with:

Chief Compliance Officer

Chief Financial Officer

Fund Accountant

Head of Fund Operations

Client Services / Investor Relations lead

It’s all about having the right control points covered so investors and regulators can see that the firm is institutionally sound, even if it’s still lean.

In short: my advice is start lean, but start right. A well-structured minimum team provides the foundation for trust, scalability and long-term fundraising success.

How to recruit the right talent when starting a private equity firm

Specialised financial services recruitment

If you’re wondering how to start a private equity firm, you might be unsure about where to begin. Jessica says it’s important to prioritise talent acquisition.

Talent is fundamental to the success of your firm. The savviest firms make a conscious effort to delve deep into what prospective candidates can offer. Don’t be afraid to ask direct questions about their unique value proposition. For example, a strong network of contacts in the investment community can be invaluable for sourcing deals and building relationships with investors.

Depending on the firm's focus, having professionals with specific industry expertise can be beneficial. For instance, if your firm focuses on technology investments, engaging professionals with tech experience would be advantageous.

I believe local experts are the key to smooth operations, strategic investment decisions and sound compliance. Professionals with experience in the Hong Kong financial market should possess a deeper understanding of Hong Kong’s private equity regulatory framework. This is essential in ensuring compliance and avoiding legal issues.

If you want to optimise the recruitment process, consider connecting with Robert Half.

With a range of private equity recruitment solutions available, we’ll work with you to simplify the process and get your firm up and running sooner. Our team of dedicated experts will help to recruit the most skilled local candidates to lead your firm forward. 

There’s never been a better time to step into Hong Kong’s private equity arena. Sure, business plans and capital are important, but if you’re wondering how to start a private equity firm, start with the right talent. A carefully curated team will be your secret weapon when it comes to establishing your firm, scaling it and helping it succeed.

Related: Technology and the future of private equity funds

Frequently Asked Questions (FAQs)

Why is having the right management team critical to a private equity firm’s success?

Having the right management team is critical to a private equity firm’s success because it underpins investor confidence, regulatory compliance and execution quality. A strong team ensures capital is deployed responsibly, risks are properly managed and reporting meets institutional standards, which are all essential for attracting and retaining limited partners. Even the strongest investment strategy will struggle without a management team that can govern, operate and scale the business effectively.

How do private equity firms build strong teams after an acquisition?

Private equity firms build strong teams after an acquisition by aligning leadership capability with the value-creation plan from day one. This often involves retaining high-performing executives, upgrading or supplementing roles where gaps exist, and using specialised recruitment firms to bring in proven leaders with sector and scale-up experience. Clear governance, performance incentives and regular talent reviews help ensure the management team remains focused, accountable and equipped to deliver growth.

What leadership qualities do private equity firms look for most?

Private equity firms prioritise leaders who can execute under pressure and adapt quickly to change. The most valued qualities include strong commercial judgement, accountability, decisiveness and the ability to lead through transformation rather than steady-state operations. Firms also look for leaders who communicate clearly with investors, build high-performing teams and stay disciplined in capital allocation while driving growth.

How important is teamwork and collaboration in private equity?

Teamwork and collaboration are paramount in private equity because value creation depends on tight coordination between investors, management teams and external advisers. Deals move quickly, decisions are highly interdependent, and execution risks increase when functions operate in silos. Firms that have strong collaboration tend to make better decisions, resolve issues faster and deliver more consistent outcomes across the investment lifecycle.

Why do some private equity deals fail due to team issues?

Some private equity deals fail due to team issues because the leadership in place cannot execute the value-creation plan at the pace or scale required. Common problems include misaligned incentives, weak decision-making, lack of collaboration between new owners and management, or resistance to change following the acquisition. When capability gaps are identified too late, operational momentum slows and value is eroded before corrective action can be taken.