Private Equity Finder's Fee Agreement Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that establishes the terms and conditions under which a finder or intermediary will source and introduce potential investment opportunities to a private equity firm or investment fund. The document details the scope of services, fee structure, payment conditions, and compliance requirements while addressing specific Hong Kong regulatory considerations, particularly those under the Securities and Futures Ordinance. It includes provisions for confidentiality, representations and warranties, and liability limitations specific to the Hong Kong legal framework.

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What is a Private Equity Finder's Fee Agreement?

The Private Equity Finder's Fee Agreement is essential for structuring relationships between private equity investors and intermediaries in Hong Kong's dynamic financial market. This document is typically used when investment firms seek to expand their deal pipeline through external sources, establishing clear terms for compensation and defining what constitutes a qualified introduction. The agreement must carefully navigate Hong Kong's regulatory environment, particularly regarding licensed activities under the Securities and Futures Ordinance. It includes detailed provisions on fee calculations, payment triggers, and compliance obligations, while addressing potential conflicts of interest and confidentiality requirements. The document is particularly relevant in Hong Kong's competitive private equity landscape, where network-based deal sourcing remains crucial for investment success.

What sections should be included in a Private Equity Finder's Fee Agreement?

1. Parties: Identification of the principal and the finder, including full legal names and registered addresses

2. Background: Context of the agreement, including the principal's desire to identify investment opportunities and the finder's capability to introduce potential deals

3. Definitions: Key terms used throughout the agreement, including 'Successful Transaction', 'Target Company', 'Finder's Fee', and 'Qualified Introduction'

4. Appointment and Scope of Services: Details of the finder's appointment and specific services to be provided

5. Finder's Obligations: Specific duties and responsibilities of the finder, including reporting requirements and compliance obligations

6. Fee Structure: Detailed explanation of how and when finder's fees are calculated and earned

7. Payment Terms: Timing and method of payment, including any conditions precedent to payment

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Representations and Warranties: Standard representations from both parties, including regulatory compliance and capacity to contract

11. Regulatory Compliance: Specific obligations regarding compliance with Hong Kong securities laws and regulations

12. Limitation of Liability: Caps on liability and exclusions of certain types of damages

13. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment

What sections are optional to include in a Private Equity Finder's Fee Agreement?

1. Exclusivity: Used when the finder is granted exclusive rights for certain introductions or territories

2. Non-Circumvention: Include when there's risk of the principal bypassing the finder for future transactions

3. Tail Period: Add when fees may be payable for deals completed after agreement termination

4. Foreign Currency Provisions: Include when deals or payments may involve multiple currencies

5. Anti-Corruption Provisions: Enhanced provisions for deals involving public companies or government entities

6. Force Majeure: Include when needed for long-term arrangements or in uncertain market conditions

7. Data Protection: Enhanced provisions when significant personal data processing is involved

What schedules should be included in a Private Equity Finder's Fee Agreement?

1. Fee Calculation Examples: Detailed examples showing how fees are calculated in various scenarios

2. Approved Form of Introduction Notice: Template for formal introduction documentation

3. Excluded Opportunities: List of pre-existing relationships or opportunities excluded from the agreement

4. Compliance Requirements: Detailed regulatory compliance checklist and requirements

5. Required Information for Introductions: Specific information needed for each introduction to qualify

6. Authorized Representatives: List of authorized contacts for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Equity Agreement

Cost

Free to use

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