HKVCA Christmas Cocktails 2018
11 December, 2018

The HKVCA’s healthcare and biotech seminar was held on November 30, 2018 at the offices of Deloitte. The event kicked-off with an update by Edward Au on the IPO market and a discussion of the opportunities for healthcare and biotech companies.  Au was followed by a panel discussion moderated by Judith Li of Lilly Asia Ventures and including panelists Vanessa Huang of BVCF Management and Bosun Hau of Sailing Capital. The panel engaged in a wide-ranging discussion on the investment outlook for healthcare and biotech. Both Huang and Hau spoke of their experiences investing in the sector and drew comparisons between the capital markets in the US and Asia. They also discussed the obvious benefits biotech can bring to Hong Kong and its entire ecosystem. They also gave their views on the most interesting and innovative technologies that have emerged in the past several years and how the overall regulatory environment (for example, CFIUS) will have an impact. The panel discussion ended with the panelists each offering their own advice on investing in healthcare. Close to 120 people attended the seminar and we would like to extend our thanks to Deloitte for sponsoring this very informative event.

An HKVCA members breakfast meeting was held at the Hong Kong Club on November 23, 2018. This was the Association’s last breakfast meeting of the year, and as has been the case in previous months, it was significantly oversubscribed. With more than 90 members registering to attend, our breakfast events are proving to be among our most popular activities for members. Hosted by our Vice Chairman, Rebecca Xu, members took full advantage of this valuable opportunity for networking and connecting with industry peers and fellow practitioners. We would like to thank each of our members for their enthusiastic participation as well as our sponsor, KPMG, for making this event such a success.

HKVCA Luncheon Talk: Strategic use of M&A insurance for PE and M&A dealmakers
22 November, 2018

The HKVCA hosted its latest luncheon talk on November 22, 2018 at the China Club. Noting the trend toward the use of insurance in M&A transactions, Terence Montgomery, Head of Mergers and Acquisitions, Asia Pacific from Willis Towers Watson, spoke about how warranty and indemnity and tax insurance can maximize strategic outcomes in M&A. The discussion was focused largely on providing dealmakers with a greater understanding of how utilizing insurance products can improve outcomes in the M&A process. With over 40 practitioners in attendance, the event received much positive feedback. We would like to thank sponsor Willis Towers Watson for making the event possible.

The HKVCA hosted a luncheon seminar on November 12, 2018 at the China Club. As many as 30 participants were in attendance to hear Dean Hill, Executive Director, and Michael Steinkuhl, Associate Director at Castle Integration, provide an overview of the On-Prem Infrastructure. Discussion was also had on the different cloud models that are available, and the speakers shared examples highlighting the security issues that users face. We would like to thank all the participants, and especially our sponsor, Eze Castel Integration, for their generous support.

The HKVCA Young Professionals Committee held a mixer on October 25, 2018 at the Liberty Exchange Kitchen & Bar in Central. This special event, which has always provided attendees with valuable networking opportunities in a fun and social setting, is aimed specifically at our younger members. This year more than 75 people attended representing a broad range of sectors from within the private equity and venture capital industries. The HKVCA would like to extend its most sincere appreciation to the sponsors, Ernst & Young and Shearman & Sterling, and to all participants who together made the evening one for the ages.

The HKVCA hosted its latest brownbag luncheon talk on October 25, 2018. Held at the offices of DLA Piper, as many as 40 participants were in attendance for a talk that covered the applicability and key changes to the Hong Kong Fund Manager Code of Conduct (FMCC) as well as issues around the role of fund managers. We would like to thank speaker Luke Gannon, and extend a special thanks for the generous support of event sponsor, DLA Piper Hong Kong.

This year’s Private Equity Fundamentals Course, our training program focused on the core fundamentals of private equity and venture capital, was held with the support of the Hong Kong Exchanges and Clearing Limited, Hong Kong University’s MBA program, and the MBA program at the Hong Kong University of Science and Technology.

The first two sessions, dealing with early stage investment and private equity basics, were completed on September 3rd. Modules covering investment decisions, valuation issues and ESG, post investment matters and transaction documentation were completed on September 10th and 11th, and October 9 and15th respectively. A tax and fundraising module, which was sponsored by KPMG, was completed on the 10th of October. The final module, a session dedicated to examining case studies, was held on October 23rd.

The HKVCA was very pleased that more than 90 delegates attended the course and we would like to extend a very special thanks to the following people, our hard working and incredibly knowledgeable course instructors: 

• Pratima Divgi, Investment Manager, Aberdeen Standard Investments
• Joseph Ferrigno, Managing Partner, AMCG Partners
• Miranda Tang, Managing Director & Head of ARIA, CLSA Capital Partners
• Alvin Lam, Principal, CVC Capital Partners
• Patrick Yip, National M&A Leader, National Financial Services Tax Leader & Deputy Tax Managing Partner, Deloitte China
• William Lee, Director, International Tax, Deloitte China
• Roy Phan, Director, International Tax, Deloitte China
• Robert Kwok, Managing Director, Transaction Advisory Services, Ernst & Young
• K.O. Chia, Director, Grace Financial
• Natalie Chan, Assistant Vice President, Issuer Services, Market Development, HKEX
• Roger King, Adjunct Professor of Finance, HKUST
• Winnie Peng, Adjunct Assistant Professor in Finance, HKUST
• John Levack, Vice Chairman, HKVCA
• Andrew Wong, CFO, Hong Kong Broadband Network Limited
• Rocky Lee, International Partner, King & Wood Mallesons
• Arion Yiu, Partner, KPMG
• Malcolm Prebble, Partner, KPMG China
• Maurice Conway, Associate, Latham & Watkins
• Simon Cooke, Partner, Latham & Watkins
• Gwenlynne Lee, Associate, Latham & Watkins
• Ivan Chan, Executive Director, Morgan Stanley
• Marcia Ellis, Partner & Co-Head of Asia Private Equity practice, Morrison & Foerster
• Catherine Liu, Associate, Morrison & Foerster
• Dennis Kwan, Managing Director and Head of Asia, MVision
• Betty Yap, Partner, Paul, Weiss, Rifkind, Wharton & Garrison
• Oscar Chow, Managing Director, Polaris Holdings
• Michael Chow, General Partner, Radiant Tech Ventures
• Sean Murphy, Counsel, Shearman & Sterling
• Anil Motwani, Associate, Shearman & Sterling
• Stephen Howard, Counsel, White & Case
• Andrew Cohn, Counsel, White & Case

The HKVCA hosted a luncheon seminar titled “Polishing the Crystal Ball: Demystifying the Complex Business Ecosystem in India”, which was held on October 11th, 2018 at the China Club. Abhijit Yadav, a principal from Berkeley Research Group, delivered a briefing on the latest economic outlook for India and on the country’s latest policy and regulatory changes. He also forecasted that healthcare, energy and retail would be strongest sectors in the coming 5 years and beyond. He noted that India continued to face a number of challenges and offered tips on how to prevent being tripped up by some of those issues when engaged in transactions on the ground.

With close to 50 HKVCA members attending the event, we would like to thank all the participants, and especially our sponsor, Berkeley Research Group, for their generous support.

The HKVCA’s 31st Annual General Meeting (AGM) was held on September 28, 2018. More than 50 members attended this year’s gathering, which saw the election of a new Chairman and the election of 24 Board Members. Outgoing Chairman Eric Mason (2015-2018) delivered his report summarizing the Association’s great work over the course of the last year. He then formally recognized and welcomed the HKVCA’s new Chairman, Chin Chou. We would like to extend our appreciation to members of the Board of Directors and to all members who gave of their time to attend this important Association event.

The HKVCA's monthly breakfast meeting was held at the Hong Kong Club on Friday, August 24, 2018. More than 80 members attended the event, most of whom took advantage of the excellent opportunity to network and reconnect with their colleagues and fellow industry practitioners. We would like to especially thank EY for their participation and generous sponsorship. 

HKVCA Luncheon Talk: What the Hack is the Difference? Understand the differences between a Cyber Policy and a Computer Crime Policy
7 August 2018

The HKVCA hosted a special luncheon seminar on August 7, 2018 at the China Club. Naureen Rasul, Senior Vice President and Regional Financial Institutions Industry Leader for Asia at Marsh, discussed the important distinction between cyber policy versus computer crime policy, and the differing protections each offers. Using a wealth of statistics, she stressed the necessity of having a robust system of cyber security in place, pointing out the most common cyber incidents and crimes companies are most vulnerable to as well examples of breaches that have actually occurred. The presentation ended with the audience joining in for a pop quiz.
 
With over 40 HKVCA members attending the event, we would like to thank all the participants, and especially our sponsor, Marsh, whose generous support made this event possible.

The fifth annual HKVCA Hong Kong Venture Capital Forum, which was held under the name “Venture” this year and co-organized with HKEX and RISE, was held on July 9, 2018 and by all measures was an unprecedented success.

This year, the main topic of the forum was venture capital in Asia. Charles Li, Chief Executive of HKEX, kicked of the discussions with a keynote address on HKEX’s role in the new economy. The keynote was followed by two fireside chats, the first featuring Kenny Man, Head of International Investment, Ant Financial; and the second with Alan Feld, Founder and Managing General Partner, Vintage Investment Partners. There were also several panels differentiated by investor niche and geographies, and also a number of roundtables running simultaneously.

The by invitation only event brought together close to 450 investors and entrepreneurs from around the world at the newly renovated HKEX Connect Hall. We received a tremendous amount of positive feedback following the event. Its tremendous success would not have been possible without the generous participation and involvement of the audience, expert speakers and the sponsors, KPMG and King & Wood Mallesons.

HKVCA Luncheon Talk: Technological Improvements in Private Equity
28 June 2018

The HKVCA hosted a luncheon seminar on technological improvements in private equity on June 28th, 2018 at the China Club. Ajay Narang, Head of Asia Sales on Preqin’s data team, began by reporting on the latest buyout and venture market trends, as well as on investment sentiment in Asia, in particular China. Henry Wadsworth, Head of Business Development in Asia Pacific at Preqin Solutions, then shared his observations and views with respect to LP expectations and requests, while Andrew Kehl, Global Head of Sales at Preqin Solutions, then introduced the firm’s portfolio manager solution which, he explained, helps private equity managers function more effectively.   
 
With close to 40 HKVCA members attending the event, we would like to thank all the participants, and especially our sponsor, Preqin Solutions, for their generous support.

HKVCA Brownbag Luncheon Talk: Extracting value through an Initial Public Offering (IPO)
21 June, 2018

The HKVCA hosted its latest brownbag luncheon talk on June 21st, 2018 at EY’s Hong Kong offices. EY’s Keith Pogson, Global Assurance Leader Banking & Capital Markets, Eugene Goyne, Executive Director of APAC Regulatory Services, and Sarah Chan, Senior Manager of China Tax and Business Advisory Services, all shared their practical insights on how to effectively and efficiently navigate the regulatory, accounting and tax landscape during an IPO exit. They also discussed the myriad of tax issues financial sponsors might encounter during the IPO process.  

Over 50 HKVCA members attended the event and we would like to thank the participants, and especially sponsors EY, whose support made the luncheon possible.

The 17th China Private Equity Summit, organized by the Hong Kong Venture Capital and Private Equity Association (HKVCA), took place on 5 June, 2018. Attracting close to 600 venture capital and private equity practitioners, leading corporations, and other industry professionals and participants from across the region, the Summit discussions focused on the latest developments and trends in the private equity market in China.    
      
Held at the Hong Kong Convention and Exhibition Centre, distinguished guests at this one-day event included: James Henry Lau Jr, JP, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government; Forest Lin, Managing Partner, Tencent Investment; Roger Luo, President, DJI; Chris Ip, Senior Partner, McKinsey & Company; Ivo Naumann, Partner, McKinsey & Company and member of its leadership team in its Private Equity Practice in Asia and leader of its Recovery & Transformation Services Practice in Greater China; and Johan Bygge, Chairman, Asia Pacific, EQT Partners Asia Limited.     
      
The theme this year highlighted the strength of China’s PE/VC industry, with M&A activity and control deal volumes at record highs. Leading industry experts addressed such topics as the impact of China’s structural reforms, new policies on regulating overseas investment and what opportunities and challenges lie ahead for cross-border deals. There was also discussion about China’s domestic capital market and other sectors, including technology and innovation.
       
We would like to thank our extremely knowledgeable audience of attendees who came from across the Asia region, making this year’s Summit a most profitable and valuable networking opportunity for participants. Thank you also to our media partners and supporting organizations. Finally, the HKVCA would like to express our sincere thanks to our sponsors, whose substantial contributions and support made the event not only possible, but indeed an unprecedented success.

The HKVCA’s Education Committee believes in the importance of portfolio management and a 100-day plan is key for achieving operational alpha. Accordingly, the HKVCA held its first 100-day plan module as part of its advanced series of courses for senior and mid-level private equity and venture capital professionals. The half-day educational course was held on May 29th at KPMG’s offices. Joseph Wan, a senior advisor from Cinven, and Ben Jelloun, a director from KPMG’s deal strategy and advisory team, addressed the nine levers that form a 100-day plan, as well as the keys to balancing expectations. Wan emphasized the importance of designing the scope of the plan, and Jelloun identified several issues that need to be addressed during the course of the first 100 days. He also provided a number of tools that may help participants as they put their plans into effect. More than 30 members of the HKVCA participated in the module, making it a valued segment of the Association’s new advanced level educational program.

HKVCA Brownbag Luncheon Talk – Gender Equality in PE: Has There Been Progress?
17 May 2018

Another of our popular brownbag luncheon talks was held on May 17, 2018. The talk was on the issue of gender equality in the private equity industry and was held at the offices of KPMG, who also generously sponsored the event. More than 50 participants were in attendance. We would like to extend our thanks to KPMG, as well as to our expert speakers: Judith Li from Lilly Asia Ventures; Denise Mak from CVC Asia Pacific; Bonnie Lo from NewQuest Capital Partners; and Iris Zhao from GCM Grosvenor.

The HKVCA’s Education Committee held its first ever negotiation module as part of its advanced series of courses for senior and midlevel private equity and venture capital professionals. The one-day intensive course was held on May 14th at the Aberdeen Marina Club and Jamie Barr, an instructor from Summit Professional Development, addressed the effective ways to plan and run the many different types of negotiations. He emphasized in particular the “TKI model” in which the parties understand how to define the negotiation styles as well as behavioral skills for negotiating themselves. Barr also discussed the importance of stakes and relationships through leveraging a game theory matrix to achieve the best outcome. Finally, he provided the participants the opportunity to engage in group discussions and role playing using specific case studies. Sixteen HKVCA members participated and it proved to be an excellent start to the Association’s new advanced level educational program.  

The HKVCA’s PRC Committee hosted its latest luncheon on May 4, 2018 at the Morrison & Foerster’s Boardroom. Serena Tan, a funds partner in the firm’s Hong Kong office, discussed the recently released Circular 11, which deals with the “Administrative Measures for Outbound Investments by Chinese Enterprises”. The Circular, published by China’s National Development and Reform Commission (NDRC), addresses issues related to Chinese enterprise investors’ direct investments as well as offshore private equity fund commitments. A number of GPs who attended the luncheon noted their concern over several recent cases and Tan reminded the audience that certain specified investments require reporting and filing with the NDRC. She also discussed fundraising and negotiations under the new rule.
 
Close to 40 GPs and LPs attended the event and both the HKVCA and PRC Committee would like to thank the participants, and especially sponsors Morrison & Foerster, whose support made the luncheon possible.

Australian agriculture: how technology and science is creating investment opportunities
16 April 2018

The HKVCA hosted its latest Brownbag Luncheon Talk on April 16, 2018 at the offices of Macquarie Hong Kong. Elizabeth O’Leary, Global Head of Agriculture from Macquarie Infrastructure and Real Assets, and Sean O’Reilly, Asset Director at Macquarie Agricultural Funds Management and head of its Crop Australia, discussed the latest trends in Australian agricultural investment. O’Leary noted that agricultural investments are tied to weather with a positive correlation between population growth and food production. O’Reilly spoke about the latest technology being utilized in the sector, including GPS guidance, traffic control systems and other innovations that are working to resolve issues and optimize operations and production.  
   
The HKVCA and the Real Assets Committee would like to thank the many members who were able to take the time from their busy schedules to attend the lunch and take advantage of the opportunity to network with their colleagues. We would also like to extend a special thank you to our speakers and our sponsor, Macquarie Infrastructure and Real Assets, who made this event possible.

The HKVCA held its annual Golf Day on March 2, 2018 at the Hong Kong Golf Club in Fanling. The event was a tremendous success with perfect weather bringing blue skies and a brilliant sunny day.

Close to 90 people attended the event, including a number of attendees who were non-golfers.

There was a total of 19 teams competing in the tournament, with each team comprised of various GPs, LPs, and professional services providers serving the private equity and venture capital industry. More than 70 golfers teed off and all seemed to enjoy the challenging 40-year-old course and the truly great weather on the day. The tournament was followed by a buffet lunch.

In addition to the golf tournament, the HKVCA also held two special events: a hole-in-one challenge and a lucky draw. The lucky draw top prize was a Tudor Heritage watch, which was won by Andrew Koo from EY.  A total of HK$33,800 was raised through raffle ticket sales and was donated to the Hong Kong Society for the Protection of Children and the Hong Kong Golf Association's junior development program.

We would like to thank our generous sponsors, specifically our Platinum Sponsors Citigroup, Morgan Stanley and White & Case; our Gold Sponsors Ernst & Young, Lexington Partners and Vistra; our Breakfast Sponsor, AON; our Watch Sponsor, Oriental Watch Holdings Limited; our Hole-In-One Prize Sponsor, Mercedes-Benz; our Wine Sponsor, AOC Would Wine; and Lucky Draw Prize Contributors, The Golf Association, Paul Andersson of the Golden Bay Distillery and The Boars Club. We would also like to thank the HKVCA’s Golf Committee - Varun Bery, Chin Chou, Bob Partridge, Sunil Chandiramani and Adam Goern - for their support and leadership.

HKVCA Seminar: The Case for Listed Private Equity in Hong Kong
7 February 2018

The HKVCA hosted a seminar on Wednesday, February 7, 2018 on the subject of listing private equity funds on the Stock Exchange of Hong Kong Exchange (HKEx). Held at the offices of Neuberger Berman, the seminar attracted more than 25 members of the HKVCA.

The HKVCA’s annual Asia Private Equity Forum (APEF) was held on 17 January, 2018 at the Hong Kong Convention and Exhibition Centre. The focus of this year’s event was on the many challenges - but also the many opportunities - that exist for value creation within the industry. It featured more than 80 expert speakers and panelists representing general partners, limited partners and advisors. There were more than 700 delegates, most of whom were senior level and c-suite executives investing across all stages and geographies in Asia.

   
As it has in previous years, the 2018 Forum brought together diverse and experienced groups of private equity and venture capital practitioners, including private equity real estate and private debt. Among the topics discussed as part of the event’s programme were the key issues emerging in fundraising, investor relations, performance reporting and investor demands for greater attention to environmental, social and governance standards. There was robust discussion on key issues facing investors in private markets, including the making, managing and exiting of investments across key markets.  

 
Among the distinguished guests who participated in APEF 2018 were Paul Chan Mo-po, GBS, MH, JP, Financial Secretary of the Hong Kong SAR; Jonathan Zhu, Managing Director of Bain Capital; Rebecca Xu, Co-founder of Asia Alternative; and Suyi Kim, Head of Asia for Canada Pension Plan Investment Board. A copy of Paul Chan’s speech, as well as associated media coverage, photographs and video highlights, may be found by clicking on the relevant link noted immediately below:

Paul Chan's speech: http://www.info.gov.hk/gia/general/201801/17/P2018011700497.htm
Media coverage: https://www.hkvca.com.hk/upload/APEF2018/Media-Coverage.pdf  
Photographs: https://www.hkvca.com.hk/en/APEF2018.aspx
Video highlights: https://www.youtube.com/watch?v=1Eqk8ow8YRQ&feature=youtu.be
      
We would like to extend our sincere appreciation to our valuable media partners and supporting organizations, and, finally, to our generous sponsors, whose contributions and support made this year’s Forum so successful.

The HKVCA held its annual Gala Dinner on the evening of Tuesday, 16 January at the elegant Hong Kong Country Club. This always popular event, which was again oversubscribed this year, was attended by close to 200 guests who gathered to enjoy an evening of great food, robust conversation and excellent entertainment. With the Chinese New Year just around the corner, each of the tables were decorated with displays celebrating the upcoming year of the dog. But it was perhaps the evening’s entertainment that stole the show, featuring a fantastic performance by two young Hong Kong students playing the erhu, a traditional Chinese stringed instrument.  

The HKVCA was also pleased to make a special donation during the dinner to the Baptist Oi Kwan Social Service, which provides a diverse range of social services for the elderly, those struggling with mental illness, children and families in a holistic, caring manner. The evening also featured a presentation providing an outline of the many successful activities of the HKVCA during 2017.  

We would like to extend our special thanks to our cocktail sponsors, King & Wood Mallesons, and to MVision for supporting this very special event. Thank you also to all of our guests who helped to make our annual dinner an unforgettable evening.