Private Equity Finder's Fee Agreement Template for Hong Kong

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.

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