Hong Kong-based investment firm Sun Hung Kai & Co saw its investment profits in the first half of the year driven mainly by its alternatives portfolio, according to its latest half year results released on Wednesday.

The firm said its investment profits were driven evenly across Private Equity, Special Situations & Structured Credit and Hedge Funds.

It said gains were driven by IPO and M&A activity during the period, portfolio markups through new financing rounds of technology investments as well as ongoing distributions.

During the period, the firm said it made new investments focused on secondaries, special situations and buyout strategies.

Mr. Seng Huang Lee, Sun Hung Kai & Co executive chairman, said: “While the macro environment remains complex, our over half-century track record and disciplined capital allocation give us the resilience to navigate market cycles.”

“By leveraging our integrated credit, investment management, and alternative solutions businesses, we will continue to deepen strategic partnerships and expand co-developed solutions, driving powerful flywheel and network effects across our platform, positioning us to capture high-conviction opportunities and deliver sustainable shareholder value.”

The firm’s alternative solutions platform, Sun Hung Kai Capital Partners Limited, recorded a nominal pre-tax loss of HK$0.9m which it said was driven by higher operating expenses.

However, the platform saw fee income grow 24.7% year-over-year to HK$21m ($2.68m), and its AUM grow 17.7% to HK$29.2bn ($3.7bn).

The firm also said strategic partnerships in its alternatives solutions platform is unlocking proprietary deal flow and providing “compelling” co-investment opportunities for its investment management business.