The Asian hedge fund market has grown at an unprecedented rate in the last five years. At the end of 2002, the Asian hedge fund industry was managing 249 funds worth US$21 billion and as of mid 2007; the portfolio has grown to 928 funds managing about US$168 billion.

As the nature of hedge fund companies are ever evolving and as most hedge fund companies are not from Asia, starting out in the Asian region involves a number of relatively complex tasks.

One of the most primary considerations for hedge fund companies is to take into account the high rents in Hong Kong and specifically in Central, the financial district of Hong Kong. In 2007, rent prices have escalated by 35% and the average price of a Grade A building in Central is now approximately HK$123.00 per square foot. As the nature of hedge fund companies is constantly evolving, they need an office solution that is quick, flexible, strategically located and technologically well-equipped.

In order to attract significant funds from the region, international hedge fund companies need to be increasingly Asian based. They thrive on entering new markets in a timely manner along with the ease of setting up. Regional wise, Hong Kong still ranks as one of the most appealing places for hedge fund companies as it the financial hub of Asia and the Securities and Futures Commission has loosened the process of setting up a presence. The typical time frame of setting up in Hong Kong is about 6-8 weeks.

In the 6-8 weeks duration, companies will usually start looking to secure an office and with the vacancy factor of 1.9% in the Central district, there are not many options in the market. In a competitive market as such, many hedge fund companies would start off with a serviced office option.

When a hedge fund makes the decision to use a serviced office, they are opting for flexible lease terms between 1-12 months and hence avoid being tied down by a typical lease term of between 24-36 months for a traditional office space. Using a serviced office space also means getting first-rated convenience as serviced office options come fully furnished and equipped with IT & Communications infrastructures. Best of all, hedge fund companies can take up space at a Grade A iconic building that is conveniently located and have in place a full team of secretarial & IT support and pay a fraction of the cost.

Entering a new market is an inevitable process of trials and errors, what might typically work in the US or European market may not work in Asia so hedge fund companies might use the initial few months to learn about the marketplace. They can choose to start out small and then time to hire a team that is familiar to the Asian market. With the help of a serviced office, companies can choose to upgrade to a larger facility as serviced offices cater to offices of all sizes and price range. In a volatile market, companies can even choose to downgrade their offices and this is something that companies can do if they were to take on a traditional space.

Using a reputable and reliable serviced office provider should give companies the freedom and flexibility in customizing their own office as one client's need is different from another. Nowadays, when companies enter the Asian market, they would have identified several other Asian cities to expand to and an international serviced office should have an extensive network of centres backed by a sophisticated IT & Communications network that enables companies to control their offices remotely. Most importantly, what companies really need is a serviced office provider that is able to fully customize an office solution that fulfils all of their needs.