Ｗebinar: Recent regulatory developments in Hainan

22 December, 2020

December 22, 2020 saw the HKVCA hold its final event for the year 2020. Hosted by Vice Chairman John Levack, the webinar examined recent regulatory developments in Hainan and featured speakers Zhen Chen and Flora Qian, partners with Fangda Partners; Nicole Zhang, Partner-in-Charge of Hainan Business and colleague Henry Wong, Partner, Tax, at KPMG China; and Huang Cui, Chief Representative, Beijing Office at Hainan IEDB. Much of the discussion focused on recent qualification requirements and application procedures for QFLP managers, QFLP/QDLD funds and investors. The participants also discussed QFLP fund structures, which they highlighted by illustrating foreign versus domestic LP models, and touched on the different ways foreign investors can participate in PIPE deals, specifically QFLP versus QFII versus FSI. Finally, the tax specialists gave their views on Hainan’s preferential tax polices, typical QFLP/QDLP structures and other tax considerations.

The HKVCA extends its warmest thanks to John Levack who has so generously given of his time and experience as host of our extensive webinar series this year. Our thanks of course also to all of our speakers at this event, and to Fangda Partners for their sponsorship.  

Webinar - Fund financing solutions: recent market trends and insights

8 December, 2020

Fund financing solutions was the subject of a recent HKVCA webinar held on December 8, 2020. More than 120 people registered to attend with a number of them actively participating in the virtual discussion by submitting questions and comments for the speakers. 
 
Vice President of AlpInvest Partners, Joe Ma, acted as moderator. He was joined by Vjerana Burleigh, a principal at AlpInvest Partners, and Stefan Singer, an executive director and the Head of Fund Financing Solutions within Cross Asset Structuring at J.P. Morgan.
 
The speakers discussed the most recent market trends and insights around fund financing, including financing options available to funds, and as capital providers, characteristics they look for in a potential deal. They also examined the advantages of fund financing solutions and what kind of track record they look for before engaging with a new manager. Finally, the speakers shared their own experiences of deals that have “gone wrong” and offered their perspectives on why. 

Webinar: Proposed SFC regulations on climate-related risk

2 December, 2020

The HKVCA held a webinar on December 2, 2020 on the SFC’s consultation paper dealing with climate-related risk requirements for fund managers in Hong Kong. Responses to the SFC paper are due by January 15, 2021.

HKVCA Vice Chairman John Levack hosted the online discussion. He was joined by Ernst & Young partners Charlotte Hui, Wealth Asset Management Assurance and Judy Li, Climate Change and Sustainability Services Leader, as well as Su Cheen Chuah, a partner at law firm Deacons.   

In addition to discussion around the issues of management and disclosure of climate risk by fund managers, the speakers also examined possible changes to the Fund Manager Code of Conduct (FMCC), and broader ESG issues around governance, investment management, risk management and disclosure.

More than 70 people registered for the event. The HKVCA extends its sincere thanks to Ernst & Young for their generous sponsorship, and to John Levack and all the speakers for their participation.

Webinar: Update on Structuring for Asian Funds: Hong Kong, Luxembourg and Beyond?

17 November, 2020

Gavin Anderson and Christopher Dortschy, partners at global law firm Debevoise & Plimpton, were the speakers at an HKVCA webinar providing attendees with an update on structuring for Asian funds. Held on November 17, 2020, and hosted by Association Vice Chairman John Levack, more than 160 people registered for the event. Among the topics discussed were considerations around the legal framework of funds, relevant tax issues, investor perceptions and how a fund entity is formed under a limited partnership. The speakers also examined the common jurisdictions for Asian funds, including management of Luxembourg funds by Asian managers and Hong Kong’s new limited partnership fund regime.

The HKVCA extends its thanks to Gavin Anderson, Christopher Dortschy, John Levack and all of the attendees for their participation. Sincere thanks also to Debevoise & Plimpton for their generous sponsorship of the event.  

Webinar: Delivering returns for private equity

10 November, 2020

An HKVCA webinar examining the issues around how to deliver returns for private equity during challenging times was held on November 10, 2020. Association Vice Chairman John Levack, who served as host, was joined by Justine Lau, Partner at Mourant Ozannes, who moderated the discussions. The panel was comprised of an expert team from Alvarez & Marsal: Paul Christopher, Managing Partner; Olly Stratton, Managing Director of Performance Improvement; Keith Williamson, Managing Director & Head of Disputes and Investigations Asia; and Eddie Middleton, Managing Director of Restructuring & Insolvency.

Among the topics taken up by the panel were areas where practical, operational, and legal strategies could be introduced into portfolio companies with the aim of improving performance. Also a priority, they added, was how to identify and investigate financial statement manipulation and fraud; how to recognize and handle potential threats when parties are operating remotely; and how private equity firms can quickly adopt turnaround and reorganization strategies when they are needed.

With more than 70 people registering for the event, the HKVCA extends its sincere thanks to both Alvarez & Marsal and Mourant Ozannes for their sponsorship, and to John Levack, Justine Lau and the expert panelists for their participation.  

Webinar: GBA Opportunities for Private Equity

3 November, 2020

PRC Committee Co- Chairman Conrad Tsang hosted an HKVCA webinar discussing opportunities for private equity in the Greater Bay Area (GBA). Held on November 3, 2020, more than 190 people registered for the event.

Nicholas Kwan, Director of Research at the Hong Kong Trade Development Council, opened the discussions with an examination of the global position of the GBA as part of China’s development and the role Hong Kong may play in the growth of its financial sector. His presentation was followed by a keynote address from EY’s Ringo Choi, China South Managing Partner and Asia-Pacific IPO Leader, who discussed the registration-based IPO system operating in China.

The event ended with a lively panel discussion on the opportunities for venture capital and private equity investors. Conrad Tsang, acting as moderator, was joined by Tony Zhang, Co-Chief Investment Officer, Technology & Innovation at China Resources Capital; Min Lin, Partner at NewQuest Capital Partners; and Michael Chow, Managing Partner at Radiant Tech Ventures. The panelists shared their thoughts on the opportunities created by cross-border e-commerce and the potential for innovation in such areas as advanced manufacturing, supply chain, semiconductors, IC design, and IoT. The panelists also noted the opportunities the GBA might offer for Hong Kong startups looking to expand.  

The HKVCA would like to extend our sincere thanks to EY for sponsoring the event, to the speakers and panelists for their participation, to Conrad Tsang for his services as host, and to all those who attended the event.

Webinar: The next chapter in Chinese PE: how do you create competitive advantage in the new landscape?

29 October, 2020

The next chapter in Chinese PE and how to create competitive advantage in a new landscape was the topic of a recent HKVCA webinar held on October 29, 2020. Association Vice Chairman John Levack hosted the discussion, which featured Ivo Naumann, Partner, Private Equity, at McKinsey & Company in Shanghai and Wouter Baan, Associate Principal, Private Equity, at McKinsey & Company in Hong Kong.

Among the issues discussed was the expectation that PE in China would continue to grow, but that such growth would increasingly be concentrated in top funds. The speakers noted the ongoing shift by funds towards control deals and the need to find ways to differentiate and "create alpha". The speakers also noted that the industry would see increasing specialization and scale among leading PEs in China.  

The HKVCA extends its appreciation to our speakers and to McKinsey & Company for sponsoring this much anticipated event. Our thanks also to John Levack for continuing to act as host for many of our popular webinars, to the nearly 200 people who registered for the event, and to those attendees who participated in the discussion.

Webinar: Integrating ESG in the Private Equity Secondary Market

22 October, 2020

October 22, 2020 saw the HKVCA host a webinar that featured a discussion on the integration of environmental, social, and corporate governance (ESG) principles in the private equity secondary market. Eric Poon from All-Stars Investment Limited, and a member of the HKVCA’s Venture Committee, was joined by William Yea, principal at Coller Capital. Among the salient issues discussed was the use of ESG as a broad umbrella term encompassing multiple factors and how integrating ESG in secondaries works in practice at the LP level and in the investment management process. Yea pointed out that his firm promotes a more commercial and pragmatic approach to ESG, but noted that ESG, and in particular climate change, are increasingly important factors in the LP decision-making process.
 
The HKVCA would like to thank both Eric Poon and William Yea, as well Coller Capital whose sponsorship made holding the event possible. Our thanks also to all those who attended and took the time to submit their comments and questions for discussion.

Private Equity Fundamentals Virtual Training Series 

6 - 20 October, 2020

The HKVCA’s Private Equity Fundamentals Course is held each year, largely for the benefit of young professionals working in the industry as well as for those professionals who are seeking to refresh their skills set. In light of the COVID-19 pandemic, however, the HKVCA took the decision this year to deliver the course virtually. The Private Equity Fundamentals Virtual Training Series featured a special, re-structured syllabus. Made up of five modules, each session was presented by leading industry specialists and experts.

The first two sessions of the virtual series were held on October 6th and 8th and dealt with private equity basics and investment decisions. The third module, which covered tax issues, was held on October 13th, a rather challenging circumstance given that the territory was under a typhoon number 8 signal. Modules covering transaction documentation and post-investment matters were completed on October 16th and 20th respectively.

We were extremely pleased this year to have had more than 200 delegates attend the virtual series. The HKVCA extends its most sincere thanks to an amazing group of industry experts who were this year’s course instructors, namely:

• Matthew Puhar, Partner, Akin Gump Strauss Hauer & Feld
• Naomi Moore, Partner, Akin Gump Strauss Hauer & Feld
• Wendy Zhu, Managing Director, AlpInvest Partners
• Michael Prahl, Partner, Asia-IO Advisors
• Hao Zhou, Partner, Bain & Co.
• Andrew Whan, Head of Asia-Pacific Corporate Practice & Co-Head of Private Equity Practice, Clifford Chance
• Bryan Koo, Partner of Corporate M&A & Private Equity Practice, Clifford Chance
• Patrick Yip, Vice Chair, Deloitte China
• William Lee, Director, International Tax and M&A Tax Services, Deloitte China
• Yvonne Yip, Senior Manager, International and M&A Tax Services, Deloitte China
• Yvonne Dunn, Executive Director, Ernst & Young
• K. O. Chia, Director, Grace Financial
• John Levack, Vice Chairman, HKVCA
• Rocky Lee, International Partner, King & Wood Mallesons
• Kasheen Grewal, Director, Deal Advisory & M&A Tax, KPMG Tax Services, KPMG
• Sandy Fung, Partner, Alternative Investments, Tax, Hong Kong, KPMG China
• Ivan Chan, Executive Director, Morgan Stanley
• Marcia Ellis, Partner, Morrison & Foerster
• Min Lin, Founding Partner, NewQuest Capital Partners
• Kallan Resnick, Managing Director, Park Hill Group
• Lorna Chen, Asia Regional Managing Partner & Head of Greater China, Shearman & Sterling

Webinar: Leveraging big data and AI to feed your investment pipeline

15 October, 2020

The HKVCA hosted another of its popular series of webinars on October 15, 2020. Association Vice Chairman Alain V Fontaine was the featured host, overseeing a discussion on how to leverage big data and AI to feed investment opportunities. Tanguy Lesselin, CEO of M&A and direct investment platform Finquest, shared his insights with the attendees on opportunities for digitized M&A, including during Covid-19, as well as the growing importance of private company deal origination and how that can be supported.  

The HKVCA would like to thank Alain Fontaine for taking the time from his busy schedule to act as event host. Our thanks also to Finquest for sponsoring the event and to all of those who attended and participated by submitting questions for discussion. 

Webinar - Safeguarding performance in a downturn: ‘the rise of operational value creation’

22 September, 2020

The essential necessity of creating “alpha” returns for PE portfolios was the subject of a recent HKVCA webinar held on September 22, 2020. Hosted by Association Vice Chairman John Levack, close to 80 participants registered to hear speakers Josh Lewsey, a partner and practice leader for value creation and turnaround in Hong Kong at Ernst & Young; and Claudia Polli, Director Strategy and Transformation at Ernst & Young, discuss the opportunities for optimizing performance during the global pandemic. The speakers shared their latest findings that have emerged over recent months, identifying in particular the rising impact of digital across the whole value chain. They also identified the positives relationship between customer involvement and the average P/E of portfolio companies.

The HKVCA would like to thank both speakers as well as John Levack for making the event possible. Thanks also to all of those to attended this virtual event and contributed to the valuable discussion. 

Webinar - Climate Change and TCFD for Private Equity

8 September, 2020

As part of the HKVCA’S webinar series on the latest developments in private equity and ESG, HKVCA Vice Chairman Jie Gong hosted an event looking at the issue of climate change and the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD). Held on September 8, 2020, she was joined by speakers Matthew Bell, Asia Pacific Leader, Climate Change & Sustainability Services at Ernst & Young; and Peter Dunbar, Private Equity, Senior Specialist at PRI who offered an overview of climate-related financial disclosure and advice on how the private equity industry can address the issue in a substantive way. They also discussed the importance of dealing with risk around climate change and identified companies at the forefront of developments in Asia

More than 60 participants registered for the event and the HKVCA would like to extend its thanks to Jie Gong, our expert speakers and all those who attended and contributed to the lively debate.

HKVCA 33rd Annual General Meeting

4 September, 2020

The HKVCA’s 33rd Annual General Meeting was held via video conference on September 4, 2020. H. Chin Chou, who was re-elected Chairman, delivered his report summarizing the HKVCA’s work over the course of the last year. We would like to extend our appreciation to members of the Board of Directors and to all of our members who gave of their time to attend this important Association event.

Webinar - An overview of the latest global ESG trends

1 September, 2020

With LPs increasingly demanding comprehensive ESG report from GPs, the HKVCA was pleased to invite Therese Lennehag, Head of Sustainability at EQT, and Daniel Del Re and Helena Norrman, partners at Kekst CNC, to provide an overview on ESG criteria, standards and reporting across a variety of frameworks. The speakers addressed a number of questions often raised by LPs and discussed the impact that Covid-19 is having on ESG priorities. The speakers also identified a number of recent practical challenges to ESG implementation.

More than 80 participants registered for the event, which was hosted by HKVCA Vice Chairman John Levack. The Association would like to thank KekstT CNC, both for their participation as well as for their generous sponsorship. 

HKVCA 19th China Private Equity Summit 2020

28 August, 2020

The 19th China Private Equity Summit (CPES), organized by the Hong Kong Venture Capital and Private Equity Association (HKVCA), was held on August 28, 2020. The event had been rescheduled from May to August, and when faced with yet another wave of the COVID-19 pandemic in July, the decision was made, like with the HKVCA’s Asian Venture Capital Forum before it, to of necessity stage CPES 2020 virtually. The result was an event that brought together close to 700 venture capital and private equity practitioners, leading corporates, and other industry professionals and participants from across the globe. Much of the discussion focused around the impact of COVID-19 and the continuing trade tension between China and the US on the private capital market in Greater China and the best strategies for dealing with turbulent times. There was also discussion of China’s domestic capital market and the state of various industry sectors, including healthcare, fintech, education and real estate.

Distinguished guests at the one-day event included the Hon. Christopher Hui, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government; Robin Xing, Managing Director & Chief China Economist at Morgan Stanley; Kenneth Gaw, President & Managing Principal at Gaw Capital Partners; and Tony Zhang, Co-Chief Investment Officer, Technology & Innovation at China Resources Capital.

In addition to the many thoughtful presentations by the speakers and dynamic panel discussions, a very special session on the topic of women in the industry was for the first time added to this year’s full-day program. The panel featured five leading women in private equity and venture capital who shared their own experiences with the audience, including their views on how the pandemic has impacted the industry generally and women professionals in particular. The HKVCA is very grateful to CVC Capital Partners for sponsoring this important and popular panel.

We would also like to thank our extremely knowledgeable audience of attendees who joined us from locations around the world. Thank you also to our PRC Committee, chaired by Conrad Tsang and Rebecca Xu, and to the many supporting organizations. Finally, the HKVCA would like to express our sincere thanks to our valuable sponsors, whose contributions and support made the event not only possible, but also an unprecedented success.

Webinar - China’s QFLP Program: Revived and Growing

August 20, 2020

An update on China’s QFLP program was the topic of a recent HKVCA webinar held on August 20, 2020.  Richard Guo, a partner at Fangda Partners and founding member of the Association’s Technical Committee, and Flora Qian, also a partner of Fangda Partners, outlined the development and historical background to the QFLP regime as well as the requirements and qualifications for private equity fund managers. They also discussed the most recent changes to the regime and offered their own recommendations regarding application and other procedures under the upgraded program.

More than 120 participants registered for the event, which also featured HKVCA Vice Chairman John Levack in his ongoing role as host of the Association’s online series. The HKVCA would like to thank Fangda Partners for both their participation and sponsorship.  

Webinar - Hong Kong tax update: DIPN 61 and the LPFO

August 6, 2020

The HKVCA hosted another successful webinar on August 6, 2020 that saw Association Vice Chairman John Levack continue in his role as host of our online series. He was joined by speakers Darren Bowdern, a partner in KPMG’s Hong Kong Tax practice and Head of Alternative Investments, and Florence Yip, Asia Pacific Tax Leader of Financial Services, and Asset & Wealth Management at PwC Hong Kong, who addressed the latest tax developments in Hong Kong, especially in terms of DIPN 61 and the newly enacted Limited Partnership Fund Ordinance.

More than 70 participants registered for the event that saw the speakers update attendees on such issues as what constitutes a “fund” and the number of investors, the taxation of investment managers, the Hong Kong Certificate of Tax Resident Status and the IRD’s view on investment holding structures.  

The HKVCA would like to thank our Vice Chairman, the speakers, and all of the attendees, especially those who contributed to the discussion by submitting their comments and questions.

Deal opportunities in a post-COVID world

30 July, 2020

July 30, 2020 saw the HKVCA host another of its increasingly popular webinar events. Association Vice Chairman John Levack, who hosted the session, was joined by David Brown, leader of PwC’s M&A deals business in Asia Pacific and Deals Strategy and Ops leader for China and Hong Kong; and James Dilley, a partner in PwC's Deals group in Hong Kong, as they discussed the topic of deal opportunities post-COVID. With more than 80 participants registered for the webinar, the speakers updated attendees on PwC’s M&A half-year review of China, as well as their strategies around investing in debt and distressed opportunities. The HKVCA would like to thank the speakers, John Levack, and all those who attended the event and contributed to the discussion via their online questions.

Webinar: Hong Kong’s new limited partnership fund regime

21 July, 2020

The latest information on Hong Kong’s new limited partnership fund regime was the focus of a popular HKVCA webinar held on July 21, 2020. With Association Vice Chairman John Levack acting as host and moderator, as many as 200 people were registered for the event. Lorna Chen, Asia Regional Managing Partner, Head of Greater China and a member of the Executive Group at international law firm Shearman & Sterling joined Anson Law, Senior Manager at the Hong Kong Monetary Authority, to discuss the background and key features of the recently gazzetted Limited Partnership Fund Ordinance (LPFO). Among the details covered by the speakers was a discussion of the legal framework set up by the Ordinance as well as a comparison with limited partnership fund regimes existing in other jurisdictions.

The HKVCA would like to thank Lorna Chen, Anson Law and John Levack for their valued contributions to a topic and area of practice that is of extreme relevance and importance to our members. The HKVCA also thanks all those who attended the event and contributed to the dialogue by submitting their questions and comments during the event.

Webinar: Cayman Private Fund Law Update

16 July, 2020

An HKVCA webinar covering the latest information on the Cayman Islands government’s recent amendment to its Private Funds Law was held on July 16, 2020. Hosted by HKVCA Vice Chairman John Levack, more than 50 participants registered for the virtual event. Anthony Webster, a partner of law firm Maples and Calders and head of its funds and investment management team for North Asia, was joined by Andrew Wood, an associate at the firm, as they discussed the recent expansion of the law’s scope to include coverage of AIVs, co-investment vehicles, master funds and aggregators. The speakers noted that practitioners will have to complete the fund registration process by the end of the first week of August 2020. They indicated, however, that a number of gray areas remain as well as issues around non-fund arrangements. 

The HKVCA would like to thank both Anthony Webster and Andrew Wood, as well as John Levack, for updating the attendees on these latest developments in an area that is of great importance to our members. The HKVCA also thanks those who attended the event and contributed to the discussion via submission of online questions.

Asia Venture Capital Forum 2020

6 July, 2020

The HKVCA’s Asia Venture Capital Forum 2020 was held on Monday, July 6, 2020. Due to the ongoing COVID-19 pandemic, this year’s event was held via a virtual platform – the first time in fact that the HKVCA has hosted a fully virtual conference event. We were extremely pleased to receive more than 500 registrations by PE and VC practitioners from locations around the world.

The event featured a jam-packed, three-hour program that included four fireside chats and three panel discussions. Chief among the many and varied topics was the impact of COVID-19, both in the long and short-term, with many of the speakers noting the rapid way the industry has adapted its work processes to the changing physical realities and embraced digitization. Speakers also shared their thoughts on those investment sectors they expected to do well and those that will continue to struggle. Among the sectors that continued to be well-funded, for example, were healthcare and digital payment and remit platforms. Nonetheless, there appeared to be a degree of consensus among the speakers that startups, particularly those at early stage, would continue to face fundraising challenges, with most funds going to already successful ventures closer to exits. This did not mean, however, that bargains could not be found, with some speakers noting this was a good time to invest given current low valuations. Finally, there was discussion on what all acknowledged was a still turbulent US-China trade relationship.

We would like to extend our sincere gratitude to Cyberport and the Hong Kong Science and Technology Park for co-hosting the event. We would also like to thank our sponsors, specifically Citi and KPMG, our Platinum Sponsors, and Ogier and Wood Mallesons. The loyalty of our great sponsors is what made this event possible. Of course, our thanks to all the speakers and attendees for their enthusiastic participation, especially to those who voted in our polls and asked our speakers such though provoking questions. It was the enthusiasm of our participants that made this, our first virtual event, so successful.

Webinar: PE and VC valuation practice for 1Q2020

18 June, 2020

Private equity and venture capital valuation practice for the first quarter of 2020 was the topic of an HKVCA webinar for LPs held on June 1, 2020. Hosted by Jie Gong, HKVCA Vice-Chairman and Partner at Pantheon, more than 100 participants registered for the online event, which featured an in-depth discussion with Janet Cheung, Partner and Head of Valuation and Financial Modelling for KPMG China.

Among the important observations noted by Cheung was the fact that many managers did not update valuations for Q1 for unlisted investments, adopting instead 2019 year-end valuations. The rationale, she said, was that while the market generally reacted negatively to the pandemic, many saw the impact as temporary. While LPs have reached out to GPS for updates on key investments, this was more for a qualitative description on the company's current situation - its financial performance, liquidity position, as well as a take on the outlook for the company, especially for those looking at IPOs scheduled to happen sooner rather than later.

After a review of the fundamental principles and methods around valuation calculations, Cheung went on to note the uncertainty around Q2 where GPs will have to refresh valuations due to interim audit and review requirements. Expectations for Q2, she said, depended on the sector and industry, as different markets are recovering at different rates. However, as a general matter, except for those sectors that have done well out of the pandemic, the outlook for unlisted investments are unlikely to be more optimistic than Q1 given the pandemic is ongoing and economies are not really showing signs of recovery. Liquidity too continues to be a concern.

The HKVCA would like to thank Janet Cheung and Jie Gong for what proved to be a popular event. The HKVCA also thanks the participants, many of whom submitted their own questions for discussion throughout the presentation.

Webinar:  Tax issues on cross-border investment in PE funds in a post-pandemic world
网络研讨会:后疫情时期，跨境私募股权投资的税务问题

16 June, 2020

The HKVCA held a Mandarin language webinar on June 16, 2020, which featured speaker Danielle Zhang, Lead Consultant, China at RGP. Among the diverse issues discussed were the planning needs for different stages of investment in RMB funds, the difficulties around the design of VIE structures for domestic investment in RMB funds, issues around exit for foreign investors, and the impact of the economic substance laws that have come into force in both the Cayman Islands and the British Virgin Islands.

The HKVCA would like to extend our sincere thanks to RGP for their sponsorship, to our own PRC Committee, and to Co-Chairman Conrad Tsang, who served as moderator of the event.

香港创业及私募投资协会于2020年6月16日以普通话举办了一场网络研讨会。本活动邀请到荟才环球(RGP)中国区首席顾问张倚銮主讲，讨论的议题包括人民币私募股权投资基金“募投管退”各阶段的涉税问题，人民币基金国内投资项目搭建投资架构的涉税难点，涉及境外投资者退出的税务难点，以及已于开曼群岛和英属维尔京群岛生效的经济实质法的影响等。

香港创业及私募投资协会诚挚感谢荟才环球(RGP)对本活动的慷慨赞助，感谢本协会旗下中国内地委员会，以及在本次活动中担任会议主持的中国内地委员会联合主席曾光宇。

Webinar: An overview of the PE market in APAC

11 June, 2020

An overview of the PE market in APAC was the topic of an HKVCA webinar held on June 11, 2020. Focusing largely on Greater China, Vinit Bhatia and Hao Zhou, both partners at Bain & Company, drew a picture of the market in 2019 and provided the outlook for the year ahead.  Moderated by HKVCA Vice Chairman John Levack, more than 150 people registered for what was one of the Association’s most popular virtual events to date.  

After outlining the data on 2019, which showed a dramatic slowing in terms of deal value, deal activity and exits, Vinit Bhatia went on to observe that, despite the current turbulence, he did not see a shift in the overall traditional approach to investing in the coming one to two years. He also added that, as with any crisis or downturn, opportunities emerge within certain verticals, and after COVID-19, different sectors would evolve differently, impacting both deal opportunities and portfolio management. Hao Zhou then discussed the need for CEOs to take immediate action to safeguard their companies and ensure both their survival and mid and long-term success. He offered a checklist of actions to be taken, noting the two most important measures for companies to undertake were cost transformation and enhancement of their digital capabilities to improve efficiency. An active Q&A session followed as the speakers and participants continued their deep dive into what was clearly a topic of great interest.

The HKVCA would like to extend its appreciation to our expert speakers, to those who participated, and to John Levack for his continued support of our webinar series.   

Webinar: The perspectives of GPs and LPs globally

9 June, 2020

Mounir Guen, CEO of MVision, featured as the guest speaker at a recent HKVCA webinar, providing an update on the state of private equity at the global level from the perspective of GPs and LPs. Held on June 9, 2020, the webinar saw more than 140 members and non-members register to participate.

Following an introduction by HKVCA Vice Chairman John Levack, Guen described the environment pre-COVID-19, noting that investors entering 2020 had expected a significant market correction. Portfolios were more structured; middle market funds and lower mid-market funds were seeing money either going direct or into larger funds; and GPs were seeking dry powder. The impact of the pandemic, Guen said, has varied according to country, with Asian portfolios likely less impacted than in the US and Europe because lockdowns have been less severe. With the outlook for venture capital still bullish though, he stressed the importance of GPs’ communication with their companies and discussing how their businesses are doing. He also talked about the possibility that the investor decision working process would change because of social distancing rules pre-vaccine. The event ended with an enthusiastic Q & A session involving event participants.  

The HKVCA would like to thank both Mounir Guen and John Levack for making this webinar such a success, with the Association receiving a great deal of positive feedback from many participants.

Webinar: Managing an early stage portfolio through Covid 19

27 May, 2020

The HKVCA held a webinar on May 27, 2020 featuring a number of speakers addressing a range of timely topics around how to manage an early stage portfolio through Covid-19. Melissa Guzy, Managing Partner at Arbor Ventures; Jarlon Tsang, Head of China, Managing Partner at Eight Roads Ventures; Yinglan Tan, CEO and Founding Managing Partner at Insignia Ventures Partners; and Judith Li, Partner at Lilly Asia Ventures, spoke at the event, while HKVCA Vice Chairman John Levack served as moderator.

The speakers described the particular environments they faced and what they expected to see in the coming months. Yinglan Tan noted the impact the pandemic has had on Southeast Asia, while Judith Li discussed recent vaccine developments in the healthcare sector. Jarlon Tsang highlighted the challenges facing the TMT sector in China and Melissa Guzy outlined the importance of guiding portfolio companies through the crisis with positive cash flow. All agreed that businesses will need to develop longer term strategies, in part due to the ongoing trade war but also because of the likelihood of a second wave of Covid-19 infections.

The HKVCA was extremely pleased to be able to host such a large number of participants representing the different industry sectors. The HKVCA extends its sincere thanks to all those who participated.   

Webinar: The Cayman Islands Private Funds Law 2020 – a new regulatory regime for closed-end private funds

26 May, 2020

May 26, 2020 saw the HKVCA hold a webinar featuring speaker Nicholas Plowman, Managing Partner at Ogier, who discussed the Cayman Islands’ Private Funds Law, 2020, its new regulatory regime for closed-end private funds.

After providing an introduction to the new regulatory framework, Plowman went on to examine the vehicles that fall within the regime and the practical implications for fund sponsors. He also touched upon the definition of “private funds” and the key concepts around offering and issuing investment interests and the spreading of investment risk.  

Plowman made note of the transition period and the requirement for existing entities to submit registration applications by August 7, 2020, and the requirement for new funds to submit an application to CIMA with 21 days of accepting capital commitments. Lastly, he provided an overall summary of the operating conditions under the Private Funds Law, 2020, including valuation, custody and title verification, cash monitoring, annual audits, securities identification and use of the four eyes principle.

More than 170 practitioners registered for the virtual event, and the HKVCA was pleased to note the high level of participation exhibited by the attendees. The HKVCA extends its sincere appreciation to Nicholas Plowman, our Vice Chairman John Levack, and all the participants who were involved in the event. We also extend our special thanks to Ogier for their valued sponsorship.

Webinar: Fund-Level Liquidity Options, including Preferred Equity and Fund Financing Market Update

18 May, 2020

May 18, 2020 saw the HKVCA hold another of its increasingly popular webinars. Gavin Anderson and Thomas Smith, partners at global law firm Debevoise & Plimpton, delivered a virtual talk on the subject of fund level liquidity options and the status of the fund financing market.  

Central to the discussion was the current market disruption and how it was creating a need for liquidity and capital at the fund level. After noting the pros and cons related to the various options aimed at increasing liquidity, the speakers went on to examine structured equity and offered sample structures pre-and post-transaction and the key legal and commercial considerations they raised. The speakers also touched on fund restructuring and NAV facilities for a typical structure.

Participants made it clear that they found the webinar an extremely useful event, especially in the light of current market conditions. More than 150 practitioners registered for the event, and there was lively interaction between the speakers and participants throughout. The HKVCA extends its sincere appreciation to both Gavin Anderson and Thomas Smith, as well as to our own Vice-Chairman, John Levack. Finally, we thank all the participants who were involved in the event, with a special thanks to Debevoise & Plimpton for their sponsorship.

Webinar: Understanding the SFC Circular on External Electronic Data Storage Providers

7 May, 2020

The HKVCA held a webinar on May 7, 2020 as part of its popular ongoing series of virtual events. Mark Shipman, a partner at law firm Clifford Chance and a member of the Securities and Futures Commission’s (SFC) Advisory Committee, delivered a talk on the SFC’s recent circular providing guidance to licensed corporations (LC) on the use of external electronic data storage providers (EDSP).

After noting that LCs must be in full compliance with existing regulatory requirements when using EDSPs for keeping required regulatory records under section 130 of the Securities and Futures Ordinance (SFO), Shipman went on to discuss what an EDS is and the use of SaaS platforms for record keeping. He also discussed the due diligence requirements, the necessity of an audit trail, issues around governance, and the definition of approved premises under section 130 of the SFO.

Feedback received from participants indicates that the they found the webinar extremely helpful and a great knowledge resource. The HKVCA offers its sincere thanks to Mark Shipman for his excellent presentation, to our own John Levack, Vice Chairmen of the HKVCA, and to the more than 70 people who signed up and were involved in the event.

Webinar: Hong Kong New Limited Partnership Fund Regime

5 May, 2020

The HKVCA held another of its increasingly popular webinars on May 5, 2020. Jacqueline Bennett and Vanessa Chan, both partners at Ernst & Young Tax Services Limited in Hong Kong, joined Anson Law from the Hong Kong Monetary Authority (HKMA) and Effie Vasilopoulos, a partner at Sidley Austin LLP in Hong Kong, on an expert panel to discuss the new limited partnership fund (LPF) regime. More than 200 people participated in the event.

The HKMA’s Law began with a series of slides illustrating the position of Hong Kong as one of Asia’s premier private equity hubs, the largest in terms of total capital under management after only Mainland China. He also provided figures showing that Hong Kong was either the origin or the intermediary of more than 60% of China’s inward foreign direct investment and outward direct investment, and is continuing to grow in terms of both conventional and alternative asset management.

A discussion was then had on the legal aspects of private fund structuring in the territory, including the need for the new onshore private fund regime, a comparison of the differences between Hong Kong, the Cayman Islands and Singapore, and the key advantages of the new LPF regime for fund managers. From a tax perspective, there was discussion of how LPFs should be taxed in Hong Kong, the unified funds tax exemption legislation, as well as the licensing requirements for private fund managers. The presentation was then followed by a robust discussion of the opportunities arising from the new LPF regime.

The HKVCA was pleased to receive an enormous amount of positive feedback on the virtual event, with many participants noting the practical knowledge they gained from the discussions and the high degree of interaction that existed between the speakers and participants. The Association would like to thank all those who participated, with a special thanks also to John Levack, the HKVCA’S Vice -Chairmen, who opened the session and delivered a final wrap up of the event.  

HKVCA Webinar: Managing cash and working capital at the portfolio company level

16 April, 2020

In response to the recent social distancing measures required because of the Covid 19 pandemic, the HKVCA hosted its first webinar on April 16, 2020. Christopher Ball, Director of Advisory at KPMG, delivered a presentation to participants that included a series of slides showing the far-reaching impact Covid-19 has had on businesses and the crisis it has created in terms of working capital and cash management. He also discussed the operational cycles involved in working capital, forecasting to fulfill inventory, and used charts illustrating the long-term assessment of capacity to operate within debt limits.

More than 100 practitioners registered for the webinar, and there was robust interaction between speaker and participants. The HKVCA was pleased to receive a great deal of positive feedback, with participants confirming they found the information extremely timely and of real practical value. The Association would like to thank Christopher Ball and all the participants, and a special thanks is extended to KPMG for sponsoring the event.

HKVCA Asia Private Equity Forum 2020

15 January, 2020

The Hong Kong Venture Capital and Private Equity Association’s (HKVCA) 10th Asia Private Equity Forum (APEF) was convened on January 15, 2020 at the Hong Kong Convention and Exhibition Centre. The annual event featured as many as 80 expert speakers and panelists representing general partners, limited partners and advisors. Its positioning as the region’s premier private equity forum was illustrated by the attendance of 750 delegates, more than half of whom were senior level and C-suite executives.     
  
As in previous years, APEF 2020 brought together a diverse and well-practiced group of private equity and venture capital professionals who invest across all stages and geographies in Asia, including private equity real estate and private credit. The event program was designed to ensure vigorous discussion of the many opportunities and current issues that face investors in Hong Kong, China, India, Southeast Asia, Japan and Korea. This year also saw the introduction of two new topics to the focused sessions - LPA negotiation and 2020 hindsight – with the former session covering such issues as fund formation and structuring, and the latter prompting expert predictions for 2020 and beyond.

Distinguished guests at this annual flagship HKVCA event included the Financial Secretary of the Hong Kong SAR, Paul Mo-Po Chan, GBM, GBS, MH, JP; David Liu, Chairman of DCP Capital; Chang Sun, Managing Partner of TPG China; Jim Hildebrandt, Managing Director of Bain Capital; and Georg Wunderlin, Global Head of Private Assets of Schroders.
     
Feedback received by the HKVCA during and after the event confirmed that year after year, APEF continues to be regarded by industry practitioners as an indispensable platform for them to meet and discuss issues with their peers as well as government representatives and professional colleagues from other industry associations across the globe. We would like to thank all attendees, many of whom traveled from countries within the region and beyond, for joining us. Our most sincere appreciation extends also to our valuable media partners and supporting organizations and, finally, to our generous sponsors, whose substantial contributions and support made this year’s event possible.

Paul Chan's speech: https://www.info.gov.hk/gia/general/202001/15/P2020011500486.htm
Media coverage: https://www.hkvca.com.hk/upload/APEF2020/APEF20-Media-Coverage.pdf  
Photographs: https://www.hkvca.com.hk/en/APEF2020PA.aspx
Video highlights: https://www.youtube.com/watch?v=jmDyEzxTMY4

HKVCA Gala Dinner 2020

14 January, 2020