Paragon Capital Expands to Hong Kong Amid Booming Wealth Management Market

Singapore-based asset management firm Paragon Capital Management has established its first overseas office in Hong Kong, joining the wave of foreign money managers seeking to serve affluent clients in the financial hub. The firm, which oversees $880 million in assets, announced on Tuesday that it had received licensing from Hong Kong’s Securities and Futures Commission, enabling it to offer a broad range of services to clients in the Greater China region.

Paragon stated that its Hong Kong team would act as a bridge connecting clients across North and Southeast Asia. Co-founder, CEO, and Chief Investment Officer Paul Lee highlighted Hong Kong’s status as an ideal wealth management hub, citing its strategic location and robust financial ecosystem.

Hong Kong’s asset and wealth management industry has been thriving, with total assets under management growing 2% in 2023 to $3.99 trillion, according to data from the Securities and Futures Commission. In September 2024, Hong Kong reclaimed its position as Asia’s leading financial center, a title it had lost to Singapore during the COVID-19 pandemic.

Paragon, whose leadership includes alumni of global financial institutions like Credit Suisse, Bank Julius Baer, and UBS, manages a variety of hedge funds, equity funds, and real estate funds. The firm’s flagship hedge fund, Paragon Alpha I, led by Lee, has delivered a 132% return to investors since its inception, showcasing its investment prowess.

Arthur Fong, CEO of Paragon Capital Management (HK), stated that the Hong Kong office would offer clients a globalized and diversified platform aimed at preserving and growing wealth. He emphasized that the firm plans to leverage opportunities arising from synergies between Hong Kong and Singapore.

Hong Kong continues to solidify its position as a wealth management powerhouse, hosting more than 2,700 single-family offices. The city is well-connected to the mainland’s affluent population through initiatives like the Wealth Management Connect scheme. The Hong Kong government has also implemented measures to attract global family offices.

To further entice investors, the government recently announced plans to relax the threshold for calculating individual net assets under its cash-for-residency program. Arnold Lau, Associate Director-General of Investment Promotion at InvestHK, noted that Hong Kong remains Asia’s largest international asset management hub and an excellent location for firms like Paragon to expand their regional presence.

According to InvestHK and Hong Kong’s statistics department, the city hosted 9,960 firms with parent companies based outside Hong Kong in 2024. This included 520 Singaporean companies, making Singapore the largest foreign contributor after mainland China, Japan, the United States, and the United Kingdom.

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