Gottex Fund Management, a $7.6bn fund of hedge funds manager, has agreed to buy an Asian alternatives boutique, as hedge funds continue to expand in China.

Gottex has agreed to acquire the entire share capital of Penjing Asset Management, a $434m Hong-based alternatives manager, according to a statement from the firm. Ronnie Wu, founder and chief investment officer of Penjing, will join Gottex as a senior executive in Asia.