Hong Kong-based private equity fund First Eastern Investment Group plans to strengthen its European portfolio by increasing its investments in small- and medium-size enterprises that provide services sectors such as mobile banking and logistics, as opportunities are emerging amid the worsening sovereign debt crisis.

"We have been investing in Europe in the past two to three years and we've been very happy with our investments and we'll do more," Chairman Victor Chu said Friday on the sidelines of the World Economic Forum in Dalian, China.

"In terms of opportunities for investors, now is a good time," Chu said, without disclosing the amount First Eastern plans to invest.

The group invests in small- and medium-size enterprises in Europe and help develop their products or services in Asia.

The markets have yet to see decisive action to solve the euro zone debt crisis, he said.

"In the next few months, there will be extreme volatility both in the U.S. and Europe, less so in Asia... We hope there won't be contagion, but there definitely will be impact on Asia," Chu said.

So far, the E.U. has been able to "muddle through" but it's now crunch time, said Chu. "It is challenging for Greece to deliver the package and therefore we need to start thinking about the unthinkable."