Dear Subscriber,

  

Upcoming Event

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Enjoy the early-bird rate by 15 November 2013

Opening Remark


John Tsang
GBM, JP, Financial Secretary, HKSAR  

  Keynote Speakers:

   Dr. Shangzhi Wu     
     Chairman,      
  CDH Investments   
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Steve Martinez
Head of Asia Pacific & 
Senior Partner, 

Private Equity, 
Apollo Management
Weijian Shan
Group Chairman and 
Chief Executive Officer, 
PAG Capital
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View All Speakers

APEF 2014 will include keynote speeches from industry leaders addressing

  • The evolution of private markets in China: what next?
  • How a global private equity firm has developed its Asian strategy
  • Home-grown firms developing multiple strategies across the
    markets of Asia
  • Performance of Asia private equity funds to date: Good enough?

Panel discussions with prominent GPs addressing

  • Exits and liquidity, the perennial challenge in Asia?
  • Private equity in China: what happens when the IPO window is closed?
  • The private markets of Southeast Asia: Indonesia and the rest
  • How do pan-regional funds compete with each other and with country specific funds?
  • The resurgence of interest in Japanese private equity in the
    era of “Abenomics”
  • South Korea goes from strength to strength: How sustainable?
  • Indian private markets at a crossroads: Whither reforms and the Rupee?
  • Effective fundraising and investor relations in the new era
Date: January 15, 2014 (Wed)
Time: 08:30 - 17:30 followed by cocktail reception
Venue: S421 Hong Kong Convention and Exhibition Centre 
CPT:              6.5 points

Sponsored by:

Platinum Sponsors:

       


Gold Sponsors:

                 

                        

   

Silver Sponsor:                Cocktail Sponsor:

 

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Enjoy the early-bird rate by 15 November 2013

Date: January 15, 2014 (Wed)                                                              
Time:           07:00  - 09:30 pm
Venue: S221 Hong Kong Convention and Exhibition Centre 

Highlights of HKVCA Gala Dinner 2013

   

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Establishing and Raising Funds From a Family Office

  • A discussion on the evolution of the different stages of family offices
  • Specifics of Asian based family offices and their attitude toward raising funds with a GP
  • Establishing a Family Office - what you need to know
  • Legal, regulatory and practical considerations for establishing family offices
  • Structure of family offices
  • PE/VC fund-raising from family offices
Speakers:

K. O. Chia, Director , Grace Financial Ltd.
Lorna Xin Chen, Partner, Shearman & Sterling

Full Speakers Bio

Date: 19 November, 2013 (Tue)
Time: 15:00 - 17:00
Venue:         Shearman and Sterling Office, 12/F, Gloucester Tower,
The Landmark, 15 Queen's Road Central, Central, HK
Fee:       
   
  
Full Member: HK$150
Associate Member: HK$300
Non-Member: HK$600
CPT: 2 points

   
   
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HKVCA 11th Wine Tasting Event 

Please come and join us for the Sweetest Night of the Year!

Date:  December 25, 2013 (Mon)     FULL
Time: 18:30 - 20:30
Venue:    Hong Kong Club, 1 Jackson Road, Central, Hong Kong
Fee:             HKVCA Member: HK$350
AIMA Member: HK$420
Non-Member: HK$800

 Sponsored by:          


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HKVCA Christmas Cocktail 2013 

Date:  December 6, 2013 (Fri)
Time: 18:00 - 20:00
Venue: The American Club, 49/F, Exchange Square 2, Central, HK
Fee:           HKVCA Member: HK$250
Non-Member: HK$550

Sponsored by:        


   

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SAVE THE DATE

EMPEA-HKVCA Fundraising Masterclass

Following the success of the series in Washington, London and Mumbai, the EMPEA Fundraising Masterclass is travelling to Hong Kong and partnering with HKVCA to arm local fund managers with proven fundraising tools and global best practices. This in-depth workshop is designed for managers with funds in the market, first-time fund managers, and new hires to hear directly from leading LPs and industry insiders on actionable fundraising advice and common pitfalls. The real world perspectives and candid, closed-door discussions leave attendees better equipped to tackle potential fundraising roadblocks and realize targeted fund closes. 

Date: 16 January, 2013 (Thurs)
Time: 10:30 - 18:00
Venue:         TBC

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SAVE THE DATE

HKVCA 11th Annual Golf Day 2014 

Date:  March 21, 2013 (Fri)
Time: TBC
Venue:             The Shek O Golf and Country Club                                 

 Sponsored by:          

What is private equity's chief source of value?

Joseph Wan, a partner at Cinven HK Ltd, discusses the importance of creating operational value in today’s PE firms

Looking into the future, value creation from operational improvement will increasingly take the front seat in helping PE firms achieve their return expectations. This is a theme that is close to the heart of Joseph Wan, an operating partner of international private equity firm Cinven.

Wan suggests that in terms of PE value creation, the trend in operational improvements will continue, with multiple arbitrages being more difficult to achieve, and estimates that in order for a PE firm to generate an IRR of 25 percent it will have to deliver EBITDA growth of 10-15 percent per year in Europe and for Asian PE investors with little/no leverage the growth requirements are even higher.

“There is a growing standardization of operational improvement practices at PE firms but most are struggling to develop a replicable approach,” Wan says. “Successfully creating operational value will require a new kind of partnership between deal partners, operating personnel and portfolio company management. This is particularly true in growth investment situations where the founder/manager is still the controlling shareholder”.

There is a wide spectrum of models that different PE firms are deploying, some are more directly involved, others rely more on management. The type of expertise that is brought to bear also vary, some are topic experts or ex-managers while others are generalists and ex-management consultants. It is safe to say that there is no “one size fits all” and each PE firm needs to work out a model that is most appropriate for the requirements of the portfolio and most fitting to the culture of the firm.

In terms of value creation levers, research has shown that, in the West, the focus has been more on cash and costs, but less on topline driving activities. It is interesting to note, however, that in a recent HKVCA panel discussion, the panelists consisting of Asian PE firms indicate that they are leaving no stones unturned and focus on both top-line and bottom-line initiatives at the same time, particularly in China.

The question of whether to implement an in-house operational team or rely on external support is not easily answered because in large part it depends on the specific requirements of the portfolio company. As Wan notes, the advantage of an in-house team is in its ability to act very quickly and ensure follow-on projects are pursued with continuity, consistency and accountability. On the other hand, external support offers both breadth and depth of expertise and is irreplaceable in situations where a third-party, independent view is required.

Given the rapidly changing market dynamics, it is likely that ‘horses for courses’ will be the most common approach for a while, but as Mr. Wan noted, operational improvement will be an increasingly critical lever for fulfilling the return expectations of investors in the region.

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Other Supported Events:

The 26th Annual AVCJ Private Equity & Venture Forum 2013
12-14 November, 2013 by AVCJ

Ernst & Young Entrepreneur Of The Year 2013 China Awards
15 November, 2013 by Ernst & Young

Finance Live! Charity Concert
21 November, 2013 by SinoPac Solutions and Service

The 5th Global Private Equity Beijing Forum
1 December, 2013 by CVCA under NDRC

World SME Expo 2013
4-7 December 2013 by InvestHK

StartmeupHK Venture Programme 2013
5-7 December 2013 by HKTDC

InnoAsia 2013
5-7 December 2013 by HKSTP

Asian Financial Forum (AFF) and Deal Flow Matchmaking Session
13-14 January 2014 by HKTDC

New Members Welcome


Full Members

Fresco Capital Advisors
Represented by 
Tytus Michalski, Managing Director

Based in Hong Kong, Fresco Capital Advisors is an early stage and seed fund with a global perspective. Rather than follow a rigid process, we prefer flexible principles. Our starting point is always people and our most important guiding principle is contribution through entrepreneurship.

NEST
Represented by 
Simon Squibb, CEO
Lawrence Morgan, COO

Orion Partners (Hong Kong) Ltd
Represented by 
TK Chiang, Managing Partner

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Oversea Full Members

Magic Stone Alternative Investments
Represented by
Jenny Zeng, Managing Partner
Jerry Wang, Partner

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Individual Full Members

Ms Cynthia Zhang
Managing Partner of China AMC Capital Management Limited

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Associate Members

Censere (Far East) Limited
Represented by
Brett Shadbolt, CEO
Simon Lau, Manager

Davis Polk & Wardwell
Represented by
Eugene Gregor, Partner
Paul Chow, Partner


Davis Polk is one of the world’s leading international law firms. Our key Asian practice areas include M&A, Advisory, Private Equity, Capital Markets, Credit and Litigation/Regulatory Enforcement. We have 90+ lawyers operating from Hong Kong, Beijing and Tokyo offices offering broad spectrum and expert legal advice across the Asian markets.

Poseidon Research China Co. Ltd.
Represented by
Velisarios Kattoulas, Chief Executive
David Schlesinger, Chairman

Prometheus
Represented by
Brian Lau, Partner
Alexis Wong, CEO & Founding Partner

Prometheus is a boutique merchant bank and strategic advisory firm that specializes in China, and greater Asia, cross border transactions. We focus on joint venture development through the injection of strategic capital & expertise; advising clients on their international strategies and assisting in the execution; and raising capital funds.

Proskauer Rose
Represented by
Yuval Tal, Partner
Lynn Chan, Consultant

Founded in 1875, Proskauer is a global law firm providing a variety of legal services to clients worldwide. The firm’s Hong Kong and Beijing offices represent both multinationals investing and doing business in Hong Kong, Beijing, China and throughout Asia, as well as Asian companies investing and doing business around the world. The offices focus on corporate and transactional matters, including private equity, venture capital, fund formation, mergers and acquisitions, capital markets, foreign direct investment, joint ventures, labor and employment.

Sino-Ocean Land Holdings Limited
Represented by
Dave Lam, Financial Controller

Sino-Ocean Land was listed on the Main Board of HKEX in 2007 (stock code: 3377). We are mainly engaged in the development of mid to high-end residential properties, premium office buildings, retail properties and serviced apartments; the sale of real estate and related business, landscaping, property management and hotels and club operation.

UBS AG
Represented by
Colin Lunn, Head UBS Fund Services – APAC
Dylon Tao, Business Development UBS Fund Services – APAC

UBS Fund Services is a global fund administrator providing professional services for traditional investment funds, managed accounts, hedge funds, private equity funds and other alternative structures. With service centers located in Canada, Cayman Islands, Ireland, Jersey, Luxembourg, Singapore, Switzerland and the United States together with business development and client service offices located in Hong Kong and the United Kingdom, Fund Services is dedicated to providing a comprehensive range of asset services to clients around the globe.

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Oversea Associate Members

Avia-Tek Management Consulting (Shanghai) Co. Ltd.
Represented by
Todd Siena, Founding Partner
Natasha Yang, Executive Assistant

Avia-Tek, headquartered in Shanghai, China, provides market research, management consulting, and M&A services for OEMs, manufacturers, airlines, financial institutions, and other organizations involved in the global aviation industry.

Recent Events Report

Seminar with Cocktail: How Do Portfolio/ Operations Teams Add Value?
Oct 7, 2013

On October 7, 2013, Joseph Wan, Cinven HK Ltd, served as moderator for an outstanding panel of speakers who together drew on their years of experience and shared with an audience of close to 100 attendees their thoughts on how to add operational value to portfolio companies. The panel included Leong Cheung from Bain Capital, Ivan Kwok from Cinven HK Ltd., James Redmayne from CVC Capital Partners, Derek Sulger from Lunar Capital, and George Lan from Resources Global Professionals. We would like to thank Resources Global Professionals for sponsoring this hugely successful seminar and cocktail event.

Meet the Regulator – Recent Market Developments and the Strategic Role of Private Equity Managers
Oct 11, 2013

A luncheon talk delivered by Alexa Lam, the Deputy Chief Executive Officer of Securities and Futures Commission (SFC), and discussing the latest industry updates from a regulatory perspective was held earlier this month at the China Club. Supported by law firm Deacons, close to 60 members attended this important event which highlighted the increasingly strategic role of private equity in the economy.

Brownbag Luncheon - Hong Kong, the Rising City for Angel Investors
Oct 17, 2013

On October 17, 2013, a luncheon talk was held at the offices of KPMG which was attended by an audience of close to 40 members. Speakers Tytus Michalski, Managing Director of Fresco Capital Advisors, and Simon Newstead, CEO of Frenzoo, shared their experiences as angel investors and entrepreneurs. They also discussed the most recent developments in Hong Kong and its increasingly important global role as a centre for angel investment and a venture ecosystem.

HKVCA Young Professionals Mixer - Beer Pong Fund Raising Competition
Sept 24, 2013

On the evening of October 18, 2013, more than 200 enthusiastic young professionals joined our first charity mixer and beer pong tournament. We would like to thank all of those who attended this successful event for their generous contributions, with special thanks to Robert Walters, the key sponsor.
For more highlights of the nights, please click here

FTI Consulting presentation for HKVCA: Muddier Waters? An Analysis of Short Sellers
Oct 25, 2013

On October 25, 2013, a luncheon talk was held at which Stuart Witchell, Senior Managing Director, Global Risk and Investigations, FTI Consulting, discussed the results of his analysis of the actions of short sellers in the market, with particular focus on Mainland Chinese companies as targets. The event attracted more than 50 attendees and was held at the China Club.

Latest News

Global Venture Capital Congress 2013
November 8 & 9, 2013
Hong Kong

The venture capital and private equity (VC/PE) industries have evolved substantially from their roots in Europe and America over forty years ago. While initially focused on technology startups in the 1970s, today’s VC/PE asset classes now include growth equity and leveraged transactions of both mature and rapidly growing businesses. And no longer is investment principally found in America and Europe, with active industries on every continent. The domestic focus of the past two decades of most VC/PE investors has evolved as venture capital and private equity have become an international business with investors increasingly indifferent to national borders.

Click here for more details

Be part of our first annual HKVCA Membership Drive and win a complimentary ticket to this year’s Gala Dinner when you sign up just one new member.

• The membership award will be backdated to the period 1 January 2012 –31 December 2013.

• HKVCA members who nominate a qualified prospective new member will be awarded 1 (one) membership drive point.

• Each membership drive point will be rewarded with a complimentary pass to attend the HKVCA Annual Gala Dinner.

Current Tally: 

David Pierce 16.5
Johnny Chan 5
Eric Mason 5
Conrad Tsang 3.5
John Levack 3.5
Anna Cheung 2
Alain Fontaine 1
Joseph Wan 1
Sunil Chandiramani 1
Tim Kwok 1
Denis Tse 0.5
Lawrence Chu 0.5


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