TAIWAN Trends and Developments Contributed by: Lihuei Mao (Grace), Derrick Yang, Rose Huang and Yu-Ting Su, Lee and Li Attorneys-at-Law
Requirements for private equity funds The PE Guidelines outline the requirements for pri - vate equity capital size and professional standards: (i) the total amount of the company’s or the limited partnership’s contractual capital contribution must be at least TWD1 billion, and (ii) the private equity must be managed by a team of three or more professionals with expertise in the management of equity funds or the investment industry. These professionals should be capable of evaluating potential target businesses, making informed investment decisions and conduct - ing post-investment management. Significant strategic industries The significant strategic industries in which the pri - vate equity funds can invest include (i) information and digital services, information security, precision health, national defence and strategy, green energy technol - ogy, public welfare and defence, Asia Silicon Valley, biotechnology and medicine, intelligent machinery, recycling or circular economy and new agricultural industry, (ii) forward-looking infrastructure projects, (iii) infrastructure, (iv) industries needing upgrading or restructuring, and (v) any other industries identified by the central government authority for purpose-built businesses as being in line with policy direction. The NDC has designated a wide range of strate - gic industries suitable for private equity investment with the aim of significantly expanding the sources of private equity capital and actively fostering overall industry growth. Although not legally binding, the PE Guidelines serve as regulatory standards for private equity funds registered in Taiwan. Taiwan Private Equity Association established in 2023 In June 2022, private equity fund operators applied to the Ministry of Economic Affairs to add “Private Equity Industry” as a group sector and business scope in order to organise a business trade association. In January 2023, the Taiwan Private Equity Association was officially established, with members comprising private equity firms, securities firms, investment trusts and venture capitals. Since then, the Taiwan Private Equity Association has issued the “Self-Regulatory Guidelines for Private Equity Funds Competing for and
Acquiring Insurance Funds”, which have been signed by a number of private equity fund practitioners. In April 2023, the NDC became the competent author - ity for the Taiwan Private Equity Association, extend - ing its role beyond merely providing consultation and guidance. Through collaborating with relevant min - istries to review and publicly disclose private equity funds, the NDC aims to proactively channel institution - al investment capital into significant strategic indus - tries in Taiwan, promoting industrial and economic development. Overall, these efforts have resulted in a clearer structure and regulatory framework for private equity funds to operate in Taiwan. Life insurers’ investments in infrastructure and strategic industries through private equity In the past, life insurers’ funds were strictly regulated by the Financial Supervisory Commission (FSC). After the FSC relaxed the restrictions on life insurers’ funds and open to invest private equity funds in domestic public infrastructure and core strategic industries, the insurance industry’s investment in private equity funds had reached TWD91.8 billion by the end of 2023. As of the end of March 2025, the insurance industry’s investment in six core strategic industries (ie, infor - mation and digital services, information security, pre - cision health, green power and renewable energy, national defence and strategy, public welfare and national defence) amounted to around TWD1.6851 trillion in total. Conclusion The Taiwan market offers a wide range of opportu - nities fuelled by government policies, technologi - cal advancements, renewable energy initiatives and healthcare innovations. Despite global and regional challenges, the local market still presents a welcom - ing environment and opportunities for private equity investments. In recent years, there has been rising interest from global investors looking to invest in Tai - wanese businesses, as well as an increasingly positive attitude from local private equity funds and industry players. The establishment of the Taiwan Private Equity Asso - ciation is a significant milestone for local private equity funds, which serves not only as a platform for interac -
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