California-headquartered Matthews International Capital Management announces transition in controlling equity partnership and makes senior hire.

Matthews International Capital Management, a privately owned boutique investment management firm focused on Asia and emerging markets, on Friday said that Paul Matthews, who founded the firm in 1991, and Mark Headley, who joined Matthews soon after its founding and returned as executive chairman last year, will acquire controlling ownership interest of the firm, known more usually as Matthews.

The ownership move is subject to customary closing conditions, including applicable board, regulatory and shareholder approvals, the firm said in a statement.

Alongside this, as the firm’s ownership transitions, several of the firm’s long-time partners will increase their equity ownership.

“It is a privilege to become a controlling shareholder of Matthews, alongside my longtime partner and colleague Paul Matthews,” Headley said. “This decision reflects the deep conviction we share in the future of the firm we have built together and our continued commitment to serving clients with independence and focus. The appointments of Tiffany Hsiao last fall and now Kathy Xu as portfolio managers strengthen the firm’s investment leadership.”

Kathy Xu joins Matthews and will be based in Hong Kong. Xu was most recently with APG Asset Management, where she served as director of North Asia and senior portfolio manager of China equities. Earlier in her career, she was an investment manager at Aberdeen Asset Management, specializing in Chinese A-Shares. She will join Headley - who was named portfolio manager on the Matthews Pacific Tiger Fund and the Matthews Pacific Tiger Active ETF - effective March 9, 2026. Xu will work alongside Headley on the fund and the active exchange-traded fund (ETF).

“In an increasingly volatile world, I believe the case for international diversification is as compelling today as it was 35 years ago,” Paul Matthews said.

(The business was formerly known as Matthews Asia. It dropped the “Asia” handle to reflect a wider focus in 2023.)