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Events

Events Report

China Private Equity Summit 2021

August 17, 2021

The HKVCA’s flagship China Private Equity Summit was held for the 20th consecutive year on August 17, 2021. With COVID-19 still an ongoing issue worldwide, this year’s event, like last year, was held in a virtual format. This had the benefit of allowing for significantly greater participation from professionals across the region and around the world, with more than 700 venture capital and private equity practitioners, leading corporates, and other industry professionals and participants joining the event.

The opening panel discussion, which was on China’s private equity (PE) landscape, began by noting that many economies around the world have begun to recover since the outbreak of the pandemic in early 2020, with perhaps China’s economy being the most notable. Governments around the world injected massive liquidity into their economies, which resulted in strong performances in capital markets. At the same time, there has been increasing regulation of the financial industry. The panel discussed the implications for Chinese PE, including the views of investors, the various and likely strategies, and the position of the different sectors. Among other highlights of the event was the discussion held by the education panel, which was especially timely in the light of new regulations implemented two weeks prior to the Summit that are expected to have significant impact on the sector. The audience in particular was extremely eager to hear the expert speakers’ views on the immediate implications for the industry and how it would react to the abrupt changes.

Among the distinguished guests were the Hon. Christopher Hui, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government; Nicolas Aguzin, the new CEO of the HKEX; and Shuang Chen, Founding & Managing Partner of APlus Partners Management. We were also pleased to have invited Ying Chen, Chairman & Co-CEO of Nice Tuan, and Jianxiong Xiao, Founder & CEO of AutoX, who were special guests at two separate fireside chats.

We would like to thank our extremely knowledgeable participants and audience of attendees who joined us from locations around the world. Thank you also to our PRC Committee, co-chaired by Conrad Tsang and Rebecca Xu, and to the other committee members. Finally, the HKVCA would like to express our sincere thanks to our valuable sponsors, whose contributions and continued support made the event an unprecedented success.

Webinar and Luncheon Talk: Investor insights and the Global Private Equity Barometer 

July 21, 2021

William Yea, a principal at Coller Capital, hosted an HKVCA luncheon talk on July 21, 2021, where he discussed the recently released results of the global private equity survey conducted by his firm. The event was the first time the HKVCA had hosted a luncheon talk in hybrid format, with 20 guests attending in person and an additional 30 attendees participating online. 

Coller Capital’s Global Private Equity Barometer is a snapshot of worldwide trends in private equity, offering an overview of the plans and opinions of institutional investors. Referring to the results, Yea noted that climate change and healthcare had clearly emerged as mega-trends that will influence LP decision-making over the next 5 years. LPs also indicated an intention to increase allocation to alternative assets, though this sentiment was not shared by hedge funds. And on more of a personal note, 64% of LPs indicated they were happier with their work-life balance since the onset of the COVID-19 pandemic. 

The HKVCA thanks Coller Capital for its sponsorship. Thanks also to William Yea, the speakers and to all who attended the event, both online and in person.   

Asia Venture Capital Forum (AVCF) 2021

July 6, 2021

The HKVCA’s Asia Venture Capital Forum (AVCF) was held on Tuesday, July 6, 2021. This was the second year in a row the event was held in a largely virtual format and we were very excited to have had more than 500 people, including both PE and VC practitioners, register from locations around the world.

The half-day event featured a four-hour long program that included four fireside chats, five panel discussions and a special presentation on advanced medtech adoption by Hong Kong’s Hospital Authority. Discussions covered venture investment topics such as foodtech, regtech, SPACs and telemedicine. Limited partners and single family offices shared their views on recent opportunities and challenges. Asian unicorns and corporate ventures discussed success metrics and experiences, among other issues, and there was a focus on the most recent regulatory updates, especially around ESG.

We are very grateful 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; Arbor Ventures and Globalization Partners, our Venture Sponsors; and Clifford Chance, our Fireside Chat Sponsor. The continued loyalty of our sponsors is what has made this Forum possible. Of course, our thanks to all the speakers and attendees for their participation. We are also grateful for the patience and understanding of the participants for any technical glitches they may have experienced, and thank everyone for joining us this year for what proved be a successful event. 

Webinar: The digitalization revolution and what this means for the industry

June 30, 2021 

The digitalization revolution and the latest trends in fintech was the topic of an HKVCA webinar held on June 30, 2021. Close to 90 people registered for the event, which featured a fireside chat hosted by Danny Lee, a partner at Blue Pool Capital, joined by Melissa Guzy, Founder and Managing Partner at Arbor Venture. 

Much of the discussion focused on the incredible pace of digitalization spurred by the COVID-19 pandemic and how fintech is working to reshape the world in terms of how humans interact. Guzy noted in particular the application of technology to the financial industry, including blockchain, AI and big data, and the latest e-payment technologies, including mobile payments, central bank digital currencies and consumer-centric repayments. Also highlighted was the importance of strategic partnerships between investors, portfolio companies and clients, with these types of partnerships actually laying the groundwork for increases in scale.

The HKVCA extends its sincere thanks to all of the attendees, and especially to Danny Lee and Melissa Guzy, for supporting the event. 

Webinar: Navigating PE investments in FIG businesses 

June 16, 2021 

Mark Shipman, Vice Chair of the HKVCA’s Technical Committee and a partner at international law firm Clifford Chance, hosted an HKVCA webinar that discussed the issues around navigating private equity investments in FIG businesses. Held on June 16, 2021, more than 90 people registered for the event. 

Joined by fellow Clifford Chance Partner Bryan Koo and senior associates Vivian Kwong and Ryan Wong, the webinar examined key corporate M&A issues when acquiring FIGs and discussed the different categories of FIG businesses and investment trends in Asia. The speakers also cautioned the attendees to be mindful of legal due diligence issues, common condition precedents, and regulatory considerations for FIG acquisitions. There was an emphasis on the importance of gaining approval and notifying local regulators ahead of closing a deal. The speakers also noted the need to get clients’ consent when transferring customer accounts.  

The HKVCA thanks Clifford Chance for sponsoring the event, and extends its gratitude to the speakers and participants, especially to Mark Shipman for his services as host. 

Webinar – Private equity disputes: Typical issues and tactics for handling disputes 

June 8, 2021

The HKVCA held another in its ongoing series of webinars on June 8, 2021. With close to 90 people registered for the event, the topic under discussion centered around disputes that arise in private equity and the various tactics that can be pursued in order to best handle them.  

Mark Johnson, a partner at Debevoise & Plimpton LLP, led the discussion and was joined by other members of the firm - partner Gavin Anderson; Ralph Sellar, International Counsel; and two associates, Cameron Sim and Tiffany Chan. 

The discussion included an examination of the trends around PE disputes at the fund and portfolio level, including an actual case involving a recent dispute and the tactics adopted on behalf of the client. The speakers also addressed the difference between arbitration and litigation and the costs of bringing disputes to court, and offered advice on potential issues for Hong Kong-regulated PE managers and portfolio-level disputes. Also noted was the fact that how an investment was structured will likely have an impact on the complexity of litigation and that parties should prepare a checklist prior to commencing legal action.  

The HKVCA offers its thanks to all the attendees, to Debevoise & Plimpton LLP for their generous sponsorship, and to each of the speakers for their participation. 

Webinar: Post-pandemic thoughts: Overseas family offices and Asia investments

June 3, 2021

The approach to Asian investment post-pandemic was the topic of the HKVCA’s second family office-focused webinar held this year. More than 120 people registered to attend, making it among the most popular and in demand HKVCA webinars in 2021. 

HKVCA President Ko Chia was joined on the speaker panel by Danny Lee, a partner at Blue Pool Capital, and Jamie Cayzer-Colvin, Executive Director at Caledonia Investments. The speakers all agreed that they were optimistic about private investment in China and also expected the Southeast Asia market to show significant growth in the next decade. They sounded a more cautious note on India, however, which they said continued to have issues around access to quality education.

Both Lee and Cayzer-Colvin were bullish on the digitization revolution and the application of technology to businesses and financial segments resulting in greater cost effectiveness. While the healthcare sector remained an attractive investment, investors were advised to be mindful when deploying capital to pharmaceutical companies selling drugs in China as they are subject to government-guided pricing.

There was also discussion on the role of family offices generally in terms of preserving wealth and the maintenance of lifestyle. However, there was much encouragement around family offices having a “statement of purpose” in addition to financial returns. There should be work life balance for staff, which is a culture that has come from the top down. Likewise, there was a recognition that family offices needed to have greater gender balance and it was important to encourage more women to become involved in the management of family businesses and wealth.

The HKVCA extends its sincere thanks to all the attendees and to each of the speakers. Special thanks also to Danny Lee who has agreed to be the new chairman of the HKVCA’s Family Office Committee.

Webinar: CSRC’s Guidelines for Shareholder Disclosure of A-share Listed Companies (Mandarin)

27 May, 2021

The recent shareholder disclosure requirements introduced by the CSRC was the topic of a recent HKVCA webinar held on May 27, 2021. Part of the Association’s series of technical webinars, the event proved to be immensely popular with more than 70 people registering to attend.

HKVCA PRC Committee Co-Chairman, Conrad Tsang, the founder & Chairman of Strategic Year Holdings, was joined by Jianxue Wang, a partner at law firm King & Wood Mallesons in Guangzhou, and Tianning Ma, a partner at the firms office in Beijing.

The speakers noted that the new guidelines, which came into effect on February 25, 2021, are aimed at addressing such issues as shareholding entrustment arrangements; unexpected pre-IPO investments; and abnormal purchase pricing. Also discussed were the requirements for overseas shareholder disclosures, referring to a recent case as illustrative which involved a private equity fund with 88 committed LPs. The issuer listed the ownership of the top 10 LPs, the nature of its business and a summary of the fund structure and basic transaction information in the IPO prospectus. Speakers were reminded that the LPs’ declaration letter and other documentation will now be required during the application status.

The HKVCA would like to thank all the attendees and King & Wood Mallesons for their generous sponsorship. Our thanks also to Conrad Tsang for hosting the event and the speakers for their participation.  

Webinar: HELP! There's fraud! Now what? The lifespan of a global fraud and asset tracing claim 

May 25, 2021 

The HKVCA held a webinar on May 25, 2021 examining the many issues that arise around global fraud and asset tracing claims. The Association received more than 90 registrations for the much-anticipated event. 

Moderated by Eddie Middleton, Managing Director at Alvarez & Marsal, he was joined by three other managing directors from his firm - Daniel Barton, Davin Teo and Keith Williamson. Also participating as speakers were lawyers from Mourant Ozannes - Partner Justine Lau and Senior Associate Jennifer White. 

Among the issues discussed were the investigation of fraud and in which jurisdiction proceedings should be commenced; identifying and tracing the movement of assets; the importance of recovering electronic footprints; and the evidential burden. The attendees were also entertained by Daniel Barton who recounted cases he was involved in that dealt with the Russian authorities and agencies during actual investigations. 

The HKVCA extends its sincere thanks to all the attendees as well as to Alvarez & Marsal and Mourant Ozannes for their generous sponsorship. Special thanks also to Eddie Middleton and to each of the expert speakers for their participation. 

Webinar: CSRC’s Guidelines for Shareholder Disclosure of A-share Listed Companies 

20 May, 2021 

The recent shareholder disclosure requirements introduced by the CSRC was the topic of a recent HKVCA webinar held on May 20, 2021. Part of the Association’s series of technical webinars, the event proved to be immensely popular with more than 60 people registering to attend. 

HKVCA Technical Committee Chairman Bonnie Lo, Partner and COO at NewQuest Capital Partners, was joined by Jianxue Wang, a partner at law firm King & Wood Mallesons in Guangzhou, and Haolin Wang, a senior associate at the firms office in Beijing.   

The speakers noted that the new guidelines, which came into effect on February 25, 2021, are aimed at addressing such issues as shareholding entrustment arrangements; unexpected pre-IPO investments; and abnormal purchase pricing. Also discussed were the requirements for overseas shareholder disclosures, referring to a recent case as illustrative which involved a private equity fund with 88 committed LPs. The issuer listed the ownership of the top 10 LPs, the nature of its business and a summary of the fund structure and basic transaction information in the IPO prospectus. Speakers were reminded that the LPs’ declaration letter and other documentation will now be required during the application status. 

The HKVCA would like to thank all the attendees and King & Wood Mallesons for their generous sponsorship. Our thanks also to Bonnie Lo for hosting the event and the speakers for their participation.    

Webinar: Asia Regulatory Roadmap 

May 17, 2021 

The HKVCA held a webinar on May 17, 2021 addressing the latest regulatory developments affecting private equity and venture capital fund managers in Asia. With both Hong Kong and Singapore introducing a number of new regulations impacting the industry, the HKVCA invited partners James Ford and Charlotte Robins from the Hong Kong office of international law firm Allen & Overy, and partner Shuhui Kwok from the firm’s Singapore office, to update participants on the most recent changes.  

In addition to providing an overview of Asian regulations in the private fund sector, the speakers also discussed changes around electronic cloud storage, dealing with the threat of cyberattacks, AML/CFT procedures involving digital assets, fund structures, as well as ESG.  

More than 65 people registered for the event. The HKVCA extends its sincere thanks to all of the participants, and in particular to our speakers.   

HKVCA Private Equity Advanced Course: Fundraising and Investor Relations 

April 29, 2021

The HKVCA held its fundraising and investor relations module as part of its Advanced Private Equity Course for senior and mid-level PE and venture capital professionals on April 29, 2021. The training module, which was held online, featured two expert instructors, Alex Wilmerding, Partner at Pantheon Ventures (HK) LLP, and Kallan Resnick, Managing Director at PJT Park Hill. 
 
The course discussions included issues around the current fundraising market; key issues and concerns for LPs; the fundraising process; secondaries and co-investment options; the importance of due diligence; the key components in LP reporting; and the soft skills required to be successful in the industry.  
 
More than 50 HKVCA members the attended the course with many indicating they found it extremely valuable. The Association extends a very special thanks to our instructors for their participation.  

Webinar - SPACs: overview and trends  

April 28, 2021

April 28, 2021 saw the HKVCA hold its second in a series of webinars focused on SPACs. Hosted by Johnny Chan, President of the HKVCA and CIO of Cyberport, the event also featured speaker Rob Chan, Managing Director of the ECM team at Citigroup.  
 
The event kicked off with a discussion of recent examples of successful SPACs sponsored by private equity firms, with a particular focus on those in Asia. Chan also offered tips on how to successfully sponsor a SPAC as well as the "de-SPAC" process, a discussion of milestones and comparison with traditional IPOs. 
 
With more than 400 people registered for the event, and active participation in the closing Q&A session, the webinar proved a popular event. The HKVCA extends its thanks to Citi for its generous sponsorship and to the expert speakers and attendees for their participation.  

Webinar: Post-pandemic issues for Asian family offices 

April 8, 2021

April 8, 2021 saw the HKVCA host the first of a planned series of webinars focused on issues faced by family offices. Organized by the HKVCA’s own Family Office Committee, the series kicked off with a panel discussion featuring representatives from three Asian family office practitioners: Hilton Tam from Bright Success Capital; Eric Ng from Happiness Capital; and KO Chia, formerly with Grace Financial. The panel was moderated by Harvey Coe from Ernst & Young. 

The discussion centered around how the pandemic has impacted investment strategy across the different asset classes as well as how it has affected the operation of particular businesses. The speakers also spoke of how they managed the challenges and mitigated the risks that emerged, and whether the pandemic resulted in any permanent changes to future operational and business practices. Finally, the speakers addressed whether there would be a need to further diversify investments across more sectors in the post-Covid era. 

With more than 90 people registering for the event, and keen participation in the closing Q&A session, the webinar proved a popular event. The HKVCA extends its thanks to Ernst & Young for their generous sponsorship and to each of the expert speakers and attendees for their participation. 

Webinar: Private capital in China and the demand for data transparency 

March 31, 2021 

The evolving investor requirements on data transparency in China was the topic of a recent HKVCA webinar held on March 31st, 2021. Five expert speakers, namely James Donnan, Regional Managing Director - Asia Pacific, Intertrust Group; Fang Ling Khor, Head of Fund Services - North Asia, Intertrust Group; Cliff Chau, Partner, HOPU Investments; PV Wang, Managing Director, Legend Capital; and Marcos Chow, Partner - IT Advisory and Head of Technology Enablement, KPMG China/Hong Kong, joined the event. More than 70 people registered to attend, with a significant number actively participating in the virtual discussion by submitting their questions and thoughtful comments. 

The speakers covered a wide range of issues, including the rise in demand for transparency, changing investor expectations and the response of CFOs. Intertrust also revealed the results of its latest survey, which showed that increased demand for reporting around cybersecurity and ESG is a major factor going forward and that CFOs preferred to allocate resources to expanding their technology framework and in-house finance team to deal with the new reporting requirements. 

The HKVCA extends its sincere thanks to the Intertrust Group for their generous sponsorship, and to all of the speakers and attendees for their participation. 

Webinar: US-Asia relations in the Biden era 

March 9, 2021

The HKVCA and Singapore Venture Capital and Private Equity Association (SVCA) co-hosted a webinar on the topic of US-Asia relations in the Biden era, the first time the associations had come together to host a webinar event. 

Discussions began with a highlight of the difficulties faced by private equity firms during four years of the Trump administration, including its increased focus on China at the expense of South East Asia, its greater use of trade tariffs, and increased scrutiny of M&A deals. After providing an overview of the current relations between US and Asia, Dane Chamorro, a partner at Control Risk, posited that while there will likely be less fireworks under Biden, friction between the US and China can be expected to continue, especially when it comes to technology, territory, and trade and investment. 

Angela Mancini, Partner and Head of Asia Pacific Markets at Control Risk, noted that there is considerable dry powder in Asia, and a notable industry trend toward an investment strategy that is more sector focused than regionally focused. She also identified a number of potential risks investors can expect in different regions of Asia in the coming year, emphasizing the importance of knowing the risks and being prepared to deal with them. 

As many as 60 industry practitioners registered for the webinar. Our thanks to all the participants, especially to our speakers from Control Risk, and to the SVCA for working with us to deliver this timely and important event. 

Webinar - Regulatory Developments and Trends under a new US Administration

March 4, 2021

March 4, 2021 saw the HKVCA hold another in its series of webinars, this time on the topical subject of US regulatory developments and trends under recently elected President Biden. More than 140 people registered for the much anticipated event.

HKVCA Vice Chairman John Levack delivered opening remarks while the event was moderated by Lorna Chen, Asia Regional Managing Partner and Head of Greater China at international law firm Shearman & Sterling. She was joined by three partners from the firm, Brian Burke, John Beahn and Philip Urofsky.

Among the several issues discussed were the trends around the US use of sanctions laws and how they, along with reciprocal Chinese sanctions, reflect the current state of trade and diplomatic tensions. How different types of sanctions are applied in order to meet different needs and goals was also addressed, as was the speakers’ views related to digital surveillance and Huawei, Tiktok and WeChat.

After providing a general update on current US regulations, the speakers then discussed recent developments related to CFIUS, SEC securities law enforcement, a likely renewed focus on insider trading, the potential strengthening of whistle blower protections as well as general considerations for private equity and venture capital investors.

The HKVCA extends its sincere thanks to all the attendees and to Shearman & Sterling for their generous sponsorship. Special thanks also to John Levack and to each of the expert speakers for their valued participation.

Webinar – A practical SPAC case study for private equity investors

February 4, 2021

The recent and increasingly popular trend of utilizing SPACs in the private equity world was the topic of an HKVCA webinar held on February 4, 2021. The Association was extremely fortunate to have as speaker Denis Tse, CEO of ACE Equity Partners International and President of ACE Convergence Acquisition LLC, who was able to share his own recent practical experience leveraging a SPAC vehicle with the audience. Over 100 people registered to attend the event, many of whom actively participated in the virtual discussion by submitting questions and thought-filled comments.

With ACE Convergence Acquisition Corp announcing on January 7, 2021 that it had signed a merger agreement with Achronix Semiconductor Corp, Tse, as the deal maker, directly addressed the advantages of using SPACs in private equity transactions. He also provided a series of practical tips around the SPAC lifecycle, from setting strategy and formation to post-merger management. However, he also urged caution and awareness of CIFUS-sensitive issues as well as timing of IPOs in the US.

Webinar: A toolkit for Asian managers looking to tap into EU monies

2 February, 2021

A toolkit for Asian managers looking to tap into EU monies was the subject of an HKVCA webinar held on February 2, 2021. Hosted by HKVCA Board member Varun Bery, he was joined by representatives from global offshore law firm Harneys - Maggie Kwok, Partner and head of Funds and Regulatory practice group in Asia, and Vanessa Molloy, Partner and Head of Funds in Luxembourg.

Chief among the discussions was the issue of why the Cayman Islands and Luxembourg remain attractive jurisdictions. In addition, the speakers examined parallel fund structures, the future of reverse solicitation, issues around the extension of the AIFMD passport to third country AIFMs and AIF, and the reasons why Cayman-Luxembourg fund structures generate significant interest.

With more than 70 people registering for the event, the HKVCA extends its sincere thanks to Harneys for their generous sponsorship, and to Varun Bery and both speakers for leading the event.  

Webinar: Climate change best practices for GPs

28 January, 2021

Climate change best practices for GPs was the topic of the HKVCA’s first webinar of the year held on January 28, 2021. The event proved to be immensely popular and more than 100 people registered to attend.

HKVCA Vice Chairman Jie Gong, a partner at Pantheon Ventures, was joined by Queenie Ho, a partner at Affinity Equity Partners; Alvin Lam, Principal at CVC Capital Partners; Ross Chiu, Director of Kerogen Capital; and Neil Macdonald, Head of Wealth and Asset Management at KPMG China.   

The speakers on the GP side shared best practices in terms of how to begin measuring climate related issues for portfolio companies and when it becomes necessary to apply methodology and benchmarking. The speakers also agreed that climate changes is a vital challenge, especially for those countries and regions hardest hit, and identified how the Task Force on Climate-related Financial Disclosures (TCFD) may help. Finally, the panelists shared their own strategies on how to meet the demands of combating climate change, encouraging participants to include the issue in their due diligence and investment memos.

The HKVCA extends its sincere thanks to all the attendees and to KPMG for their generous sponsorship. Our thanks also to Jie Gong for hosting the event and to all the expert panelists for their participation.  

Asia Private Equity Forum 2021

20 January, 2021

The Hong Kong Venture Capital and Private Equity Association’s (HKVCA) 11th Asia Private Equity Forum (APEF) was convened virtually on January 20, 2021. The annual event featured closed to 70 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 1,000 delegates, more than half of whom were senior level and C-suite executives.

The goal of APEF 2021 is to bring together a multi-disciplinary group of investment professionals, government representatives and industry peers to present and exchange cutting-edge ideas in private capital investment. It aims to promote top level strategizing through keynote speeches, fireside chats, panel discussions and presentations, focusing attention on recent developments and challenges, and engaging in both future gazing as well as substantive discussions around the current practical needs of our industry.

APEF 2021’s theme centered around the pandemic and deglobalization. Without geographic limitations and barriers, speakers from all around the world were able to discuss live the latest opportunities arising within our industry as well as the lessons learned from the unprecedented challenges brought about by the global COVID-19 pandemic. The event program was also designed to ensure vigorous discussion of the current issues that face investors in China, India, Southeast Asia, Japan, Korea and Australia. Family offices, US LPs, and specialists in real estate and venture capital had discussions about their investment environment and portfolio allocations in Asia, while participants were provided with the very latest regulatory updates, in particular on the new LPF regime and climate change disclosures. This year also featured, for the very first time, discussions covering diversity, inclusion, and career advancement. APEF 2021 and the HKVCA were honored as well to have hosted a series of fireside chats with Kai-Fu Lee, Chairman & CEO of Sinovation Ventures, and Brian Gu, Vice Chairman & President of XPENG Motors, on the future of AI and autonomous driving in PE and VC investing, and likewise to have hosted Robin Xing, Managing Director of Morgan Stanley, who delivered a most noteworthy keynote presentation on dual circulation, decoupling, and delisting.

We would like to thank all attendees, including many who joined from time zones around the world. Our most sincere appreciation extends also to our generous sponsors, whose substantial contributions and support made this year’s event possible. We really look forward to seeing all of you in person once again at next year’s APEF.

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

The evening of Tuesday, January 14th was a special night for guests at the HKVCA’s annual 2020 Gala Dinner. The event was a sell out with more than 200 attendees gathering to enjoy a wonderful evening of splendid food and entertainment. Chin Chou, Chairman of the HKVCA, delivered a rousing speech that described some of the major activities that made up the HKVCA’s work in 2019. The dinner also featured an award ceremony where the two winners of the HKVCA’s ESG Award of Excellence 2020 received certificates in recognition of their achievements.

The evening’s entertainment was among the major highlights of the night, featuring a wonderful and spirited performance by two young Hong Kong pianists. And, with the Chinese New Year starting on January 25th, it seemed fitting that each dining table was decorated with colorful figures representing the upcoming year of the rat. The HKVCA was also pleased to be able to make a significant donation to a worthwhile charity, the Hong Kong Evangelical Dancing Troop Limited, which offers scholarship programs to talented youngsters in Hong Kong to support their development in the arts and music.

We would like to extend our very special thanks to our cocktail sponsors, King & Wood Mallesons and MVision, and to all of our guests, whose support helped make our annual dinner a truly unforgettable evening.

Please click here to view the photo album.