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Hong Kong Venture Capital and Private Equity Association
   Recent changes to the Cayman Islands Private Funds Law     
With effect from 7 July 2020, the Cayman Islands expanded the definition of a “private fund” for the purposes of the Private Funds Law.

The expanded definition is likely to capture AIV and co-investment funds registered in the Cayman Islands.

The deadline for registering all in-scope funds remains 7 August, 2020 however (with fines for funds that fail to register).

Please contact your usual Cayman Islands service provider in order to establish whether any of your Cayman Island entities are now registrable as a “private fund” as a result of these very recent changes.

   HKVCA Welcomes the Passage of the Limited Partnership Fund Bill   
The Hong Kong Venture Capital and Private Equity Association (HKVCA) welcomes passage of the Limited Partnership Fund Bill by the Legislative Council of Hong Kong on 9th July. The bill was gazetted on 20th March and will come into effect on 31st August 2020.
   
H. Chin Chou, Chairman of the HKVCA, commented, “We are pleased to see a new chapter in Hong Kong with the Limited Partnership Fund Bill offering the flexibility of registering a private equity fund locally in Asia. With the concession on carried interest that was announced in the Budget Speech in February, the new law encourages the onshoring of more private equity funds in Hong Kong.”
   
“The HKVCA is delighted that the Hong Kong government has introduced this new legislation which will allow PE and VC firms to align their form and substance in Hong Kong. The Association has worked with the Hong Kong government on this new structure and will continue to support the Hong Kong government in optimizing the limited partnership fund regime in the future. It is a milestone for the private equity industry, and we are expecting the new ordinance to strengthen Hong Kong’s position as a private equity hub in Asia,” added John Levack, Vice Chairman of the HKVCA.

   HKVCA Asia Venture Capital Forum 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 from PE and VC practitioners located 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 exit. 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.

   Learn more about HKVCA events and how our Board of Directors view them   

   Upcoming Events   
Limited Registrations Available
Cayman Private Fund Law Update
Sponsored by
Discussion topics:
  • Expanding the scope of the Private Fund Law.
  • AIV and co-investment vehicles.
  • Non-fund arrangements and grey areas.
  • Application process and deadline.
Speakers:
Anthony Webster
Partner,
Maples and Calder
Andrew Wood
Associate,
Maples and Calder
Date: July 16, 2020 (Thursday)
Time:  11:00 - 12:00 (Hong Kong Time) 
Format: Zoom Webinar* - link will be provided upon successful registration#
Fee: HKVCA Members
1 free pass per company        
additional passes: HK$200 per person
Non-Members
HK$300 per person
CPT:  1 point
*Be advised that a webinar recording of this event will not be available upon its conclusion.
#To avoid technical problems registrants should log in to Zoom webinars using the email address they provided when registering for the event. 
     

Limited Registrations Available
Full Members Only
Hong Kong’s new limited partnership fund regime
Sponsored by
Hong Kong's much-anticipated Limited Partnership Fund Bill was passed on July 9, 2020.  As a result, the new Limited Partnership Fund Ordinance (LPFO) will come into effect on August 31, 2020, introducing a new investment structure for private investment funds. The regime is expected to promote growth and increase the competitiveness of not only the private equity and venture capital sectors, but also the overall asset management and wealth management industries in Hong Kong. Participating panelists will discuss:
  • The background and key features of the LPFO.
  • The legal framework of the LPFO.
  • How the LPFO compares to limited partnership regimes in other comparable jurisdictions used for fund formation.
  • Important considerations when setting up an limited partnership fund in Hong Kong.
Please join us for this timely HKVAC webinar on July 21, 2020. Be aware that a limited number of registrations can be accepted for this event and priority will be given to HKVCA Full Members. 
Speakers:
Lorna Chen
Asia Regional Managing Partner
and Head of Greater China,
Shearman & Sterling
Anson Law
Hong Kong
Monetary Authority
John Levack
Vice Chairman,
HKVCA
Date: July 21, 2020 (Tuesday)
Time:  12:30 - 14:00 (Hong Kong Time) 
Format: Zoom Webinar* - link will be provided upon successful registration#
Fee: Full Members
1 free pass per company        
additional passes: HK$200 per person
CPT:  1 point
*Be advised that a webinar recording of this event will not be available upon its conclusion.
#To avoid technical problems registrants should log in to Zoom webinars using the email address they provided when registering for the event. 
   
The seminar is approved for newly admitted and experienced attorneys and will be worth approximately one CLE credit in New York (pending) and one General CLE credit in California (pending).

Deal opportunities in a post-COVID world
The outbreak of COVID-19 has seen the world change rapidly. Businesses are facing liquidity shortages and operational disruption as the measures put in place by governments across Asia Pacific to stem the virus have started to bite. These changes have given rise to new opportunities for private equity and venture capital investors, as historically capital invested during and immediately following economic recessions has outperformed.  
 
Identifying opportunities to deploy capital into resilient businesses at a “distressed value” or market-leading businesses at “fair value” is key, as is the need for a clear value creation hypothesis and a robust diligence process. Among the issues that investors need to examine are: 
  • Transaction themes, i.e. what are the trends emerging in Hong Kong and Mainland 
  • China’s M&A markets?
  • Distressed opportunities - is the worst still to come? 
  • The importance of value creation in uncertainty.
Speakers:
David Brown
Deals Leader, Asia Pacific;
Private Equity and
Sovereign Investment
Funds Leader,
PwC
James Dilley
Partner,
PwC China
Date: July 30, 2020 (Thursday)
Time:  11:00 - 12:00 (Hong Kong Time) 
Format: Zoom Webinar* - link will be provided upon successful registration#
Fee: HKVCA Members
1 free pass per company        
additional passes: HK$200 per person
Non-Members
HK$300 per person
CPT:  1 point
*Be advised that a webinar recording of this event will not be available upon its conclusion.
#To avoid technical problems registrants should log in to Zoom webinars using the email address they provided when registering for the event. 
   

China Private Equity Summit 2020
The CPES will go virtual on August 28, 2020 (Friday).
Date: August 28, 2020 (Friday)
Time: 9:30 – 16:25
Format:  Online Forum
6 CPT points* can be claimed after attending the full-day event.
The China Private Equity Summit is an HKVCA flagship event, attracting over 650 venture capital and private equity practitioners, leading corporates, and other industry professionals and participants from across the region. It is recognized throughout the industry as the preeminent, “must-attend” practitioners’ conference, and features in-depth discussions and information on the latest developments and trends in the private equity market in China.
   
The last twelve months have been one of the most turbulent periods in the history of China private equity. With the Chinese economy slowing as a result of the China-US trade dispute, amongst other factors, the investment and fund raising amounts in Chinese private equity have seen significant drops since their heyday. What actions should be taken by practitioners in these turbulent times? Is the slowdown merely temporary or is it structural?
   
Meanwhile, the outbreak of CoVID-19 brought the Chinese economy practically to a halt at the start of the year. While the country has worked to contain the virus, which industry sectors have continued to hold up well? Will there be a longer term social and economic impact, and if so, what are the particular implications for China’s private equity and venture capital market?
    
For those still deploying capital in China, are there emergent strategies, such as buyouts, distressed, secondaries, sector-focused strategies, PIPEs, etc.?
   
In terms of geographic region, do investors see the Greater Bay Area (GBA) as the next growth area? Are media reports on the ease of access to the GBA accurate?
Registration Fee
HKVCA Members Corporate / Overseas Full Members
One free pass per company
Additional pass: HK$2,500 per person
Corporate / Overseas Associate Members 
HK$2,500 per person
Non-members Non-Member
HK$3,500 per person
    
*Participants are hereby reminded that they are required to join the CPES virtual event at 9:30am (HKT) and remain until completion of the full event at 15:30pm (HKT) if they intend to claim 6 CPT (SFC licence) points.

Limited Seats Available
Full Members and by invitation only
GP-Led Restructurings + Secondary Transactions
Sponsored by  
In recent years GP-led restructurings have made up an increasing share of the global fund secondaries market and expectations are high that this trend will equally apply in Asia Pacific as the number of funds suitable for such transactions increases. Join us at this HKVCA luncheon panel discussion to hear experts share their experience and insights, including:
  • The various types of GP-led restructuring transactions in the marketplace.
  • Key conflicts and other issues arising in these transactions.
  • Standard terms of continuation funds and similar rollover vehicles.
  • Trends in the GP-led restructurings market and where the market may be headed in the context of current market conditions.
Speakers:
Gregory Barclay
Partner,
Goodwin
Martin Yung
Principal,
HarbourVest

 
Nick Miles
Head of Europe and
Asia Private Equity,
Lazard
Bonnie Lo
Partner & COO,
NewQuest Capital Partners
Paul Robine
Founder and CEO,
TR Capital
Date: September 17, 2020 (Thursday)
Time: 12:30 - 14:00 
Venue: The China Club, 14/F, The Old Bank of China Building, 1 Bank Street, Central, Hong Kong
Fee:   Corporate Full Members
One complimentary pass per company            
Additional pass: HK$450 per person

The breakfast meeting has been rescheduled to October 9, 2020 (Friday).
Full
Members Only Event
Sponsored by 
Date: May 8, 2020 (Friday)   October 9, 2020 (Friday)
Time: 8:00 – 9:00
Venue: Harcourt Suite, Hong Kong Club, 1 Jackson Road, Central, Hong Kong
Fee: Full Member (Corporate): One free pass per company
Full Member (Additional pass)/ Associate Member: HK$300
*Note: free pass no shows will be charged full price
*An additional charge may apply to accommodate special dietary requests.

Leveraging big data and AI to feed your investment pipeline
Sponsored by  
Deal origination for platform investment or buy-and-build strategies is a priority for private equity, especially when dry powder is at its highest. While the industry has over the years developed a number of channels aimed at generating opportunities, among the issues today is whether the use of data will become one of these channels. Moreover, can the industry obtain good and reliable data from private companies? And, how does AI make the data “better” and more actionable? Join us at this HKVCA Luncheon Talk to hear representatives from data and AI firm Finquest share their experiences and discuss how data can be used to support targeted deal origination.
Speaker:
Tanguy Lesselin 
CEO
Finquest
Date: October 15, 2020 (Thursday)
Time: 12:30 - 14:00
Venue: The China Club, 14/F, The Old Bank of China Building, 1 Bank Street, Central, HK
Fee: Corporate Full Member
One free pass per company
Additional pass: HK$450 per person
Corporate Associate / Overseas Member
HK$450 per person
Non-Member
HK$900 per person
     

Integrating ESG in the Private Equity Secondary Market
Sponsored by
  • How has ESG developed in the secondaries market?
  • Integrating ESG into the investment process and influencing portfolio companies. 
  • The next big challenges - climate change and diversity:
    LP views on climate change/carbon neutrality. 
    LP consensus on ESG.
    How has COVID-19 affected the priorities of LPs?
    How are firms improving diversity?
Speaker:
William Yea
Principal
Coller Capital
Date: October 22, 2020 (Thursday)
Time: 12:30 - 14:00
Venue: The China Club, 14/F, The Old Bank of China Building, 1 Bank Street, Central, Hong Kong
Fee: Corporate Full Member                
One free pass per company

Additional pass: HK$450 per person
Corporate Associate/Overseas Member
HK$450 per person
Non-Member
HK$900 per person
     

Date: November 3, 2020 (Tuesday)
Time: Registration and breakfast:   7:30 am
Shotgun start:   8:15 am
Lunch:   1:00 pm
Venue: The Shek O Golf & Country Club
Address: 15 Shek O Road, Shek O, Hong Kong
Format: Scramble
Fees*: Early bird rate (payment deadline: September 4, 2020)

Members
: HK$2,600 HK$2,900
Non-members: HK$3,500 HK$3,800


* Fee inclusive of light breakfast and lunch
Individual booking: Team booking:
     

Business continuity planning to prepare your firm for the unexpected
Sponsored by  
When confronted with unexpected business disruptions, investment firms must react swiftly, methodically and successfully, or else risk significant financial loss. This level of response requires extensive business continuity planning to ensure all aspects of a business are evaluated and protected.
  
Recent protests and the outbreak of COVID-19 in the region have proven that effective business continuity planning can help minimize financial loss and the negative effects of disruptions to strategic plans, market position, operations, and reputation.
  
Join Michael Steinkuhl, Director of APAC at a leading global managed IT services provider to the investment sector, Eze Castle Integration, for a luncheon on Tuesday, November 24, 2020 to learn best practices around remaining connected and safe when disaster strikes.
  
Topics of discussion will include:
  • Setting up a robust infrastructure to enable your employees to work remotely.
  • Building and maintaining a geographically separated disaster recovery site.
  • Procedures and staff training vital to business continuity.
Speaker:
Michael Steinkuhl
Director, APAC,
Eze Castle Integration
Date: November 24, 2020 (Tuesday)
Time: 12:30 - 14:00
Venue: The China Club, 14/F, The Old Bank of China Building, 1 Bank Street, Central, HK
Fee: Corporate Full Member
One free pass per company
Additional pass: HK$450 per person
Corporate Associate / Overseas Member
HK$450 per person
Non-Member
HK$900 per person
     

Asia Private Equity Forum
6 CPT points can be claimed after attending the full-day event.
Date: January 20, 2021 (Wednesday)
Time: 8:30 - 17:30 (followed by a cocktail reception)
Venue: Forum - N101, Hong Kong Convention and Exhibition Centre (New Wing), 1 Expo Drive, Wan Chai, HK;
Luncheon - N201, Hong Kong Convention and Exhibition Centre (New Wing), 1 Expo Drive, Wan Chai, HK
Fee: Early Bird Rate (Payment deadline: November 6, 2020)

HKVCA MEMBERS with membership 2021 renewed
  
CORPORATE FULL MEMBERS
One free pass per company
Additional pass per person: HK$3,600 HK$4,800
 
CORPORATE ASSOCIATE / OVERSEAS (FULL/ASSOCIATE) MEMBERS
One pass at special rate: HK$3,200
Additional pass per person: HK$3,600 HK$4,800
   
NON-MEMBERS
Non-members: HK$7,000 HK$8,300 per person
Members of Supporting Organizations: HK$3,600 HK$4,800 per person
CPT: 6 points
Free LP Passes
We have a limited number of free passes for pension funds, fund of funds, endowments, foundations, family offices, DFIs and sovereign wealth funds (subject to verification and a maximum of one pass per company).
If you would like to apply, please email to hkvca@hkvca.com.hk.
   
Registrations cancelled on or before 1 January 2021 will receive a refund, minus a HK$500 cancellation processing fee. Registrations cancelled after 1 January 2021 are non-refundable.

      The HKVCA's New Logo  
After many months of discussion and due deliberation among the HKVCA’s Board of Directors, we would like to announce that with effect from January 1, 2020 we have amended the byline - or tagline – that appears immediately underneath the HKVCA’s logo. Specifically, the words “Hong Kong Venture Capital and Private Equity Association” have changed to “The Association for Private Capital in Asia”. The HKVCA’s new tagline is a reflection of the innovative ways in which our industry has grown and changed over the last several years, changes that can also be seen in the composition of our membership.
 
Our members today represent far more diverse types of asset classes than was true at the Association’s founding, and include private credit, real estate and illiquid private markets. Likewise, our membership is more diverse - in addition to our GP members, for example, we also have private capital investors from family offices, pension funds, endowments and insurance who invest in markets throughout Asia Pacific. Hence, the adoption of our new tagline was done in the sincere belief that it far more accurately reflects the nature of our industry and the aspirations of our membership. We hope all of our members are excited about this new change to our organizational identity. 

   HKVCA Official WeChat Account   

   Supporting Events   
HKTDC Entrepreneur Day
16 - 17 July, 2020
    
SuperReturn Asia

21 – 24 September, 2020
 
EdVentures Global Business Acceleration Fellowship

3 - 7 November, 2020
    
SuperReturn China

11 – 13 November, 2020
 
Belt and Road Summit

30 November, 2020
New Members
      
Overseas Full Members
Gaja Capital
Founded in 2004, Gaja Capital is one of India’s premier mid-market focused private equity firms, with an emphasis on control buyouts. The company is led by Gopal Jain, Ranjit Shah and Imran Jafar, who have been together since the firm’s inception. Gaja has invested consistently across themes in education, financial services and consumers, with a key focus on driving scale and transformation in its portfolio companies. Gaja’s team combines investing expertise with operating capability to add value in an environment where capital alone is no longer a differentiating factor. Gaja’s active engagement with its portfolio is a fundamental driver of its successful track record. Gaja has executed more than 20 investments and delivered successful exits via IPOs, trade and financial sales.
    
Nelscope Investments Limited
The firm advises corporates in various Asian countries that are raising funds from, for example, banks, financial institutions, PEs and VCs.
    
Corporate Associate Member
Finsbury Asia Limited
Finsbury is a global leader in strategic communications and a trusted adviser to many of the world’s most successful companies. Finsbury has managed some of the most complex, high-profile communications challenges and crises of the last three decades, including some of the largest international M&A transactions, IPOs and capital raisings, proxy fights, corporate restructurings, and public affairs policy campaigns, as well as major litigation and government investigations. With offices in the U.S., Europe, the Middle East and Asia, Finsbury provides expert counsel and support to clients around the world on interactions with the media, financial markets, employees, customers, governments, and other vital stakeholders.
     

     
Event Reports
     
Webinar: PE and VC valuation practice for 1Q2020
June 18, 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 18, 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 of 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

June 16, 2020
The HKVCA held a Mandarin language webinar on June 16, 2020 featuring 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 has 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 its 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
June 11, 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
June 9, 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
May 27, 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 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
May 26, 2020
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, as well as the requirement for new funds to submit an application to CIMA within 21 days of accepting capital commitments. Lastly, he provided an overall summary of the operating conditions under the Private Funds Law, 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.
          

       
Industry News
     
Billionaire Michael Kim closed his $6.5 billion fund amid the pandemic - he’s now ready to pounce on deals
July 8, 2020
When Korean private equity maven Michael Kim, founder of MBK Partners, launched a new fund last November, little could he have imagined that the world was on the cusp of a once-in-a-century pandemic.
    
But in crisis lies opportunity. When much of the world was still under lockdown, Kim closed MBK’s fifth and largest fund in May - raising $6.5 billion in just six months. Secured amid an environment that has upended the global economy, the fund is Asia’s largest to close thus far this year....
(link to the full article)
      
Beyond Ventures-led funding enables Robotics Cats to help protect forests, national parks and UNESCO World Heritage sites around the world
July 8, 2020
(Press Release) - A HK$6 million investment led by Hong Kong-based venture capital fund Beyond Ventures is enabling a Hong Kong company to help protect over 4 million hectares of forest around the world.
   
Robotics Cats is a global leader in detecting wildfires at an early stage and serves national parks, UNESCO World Heritage sites and private plantations with its InsightFD Early Wildfire Detection System. This is a network of InsightFD robots linked to the Insight Globe management platform in a typical wildfire control centre
....
(link to the full article)
      
Cayman fund regulation: marginal gains
July 3, 2020
(AVCJ by Tim Burroughs) - Private equity firms that use the Cayman Islands as a fund domicile are coming to terms with the realities of registration. Is the cumulative weight of increased regulation making them consider other jurisdictions?
   
It should come as no surprise that comparisons are drawn between private funds legislation currently being rolled out in the Cayman Islands and rules implemented in the likes of Luxembourg. From compulsory registration of almost all private equity vehicles through local audits and ongoing monitoring, the quintessential “offshore” jurisdiction is borrowing from the “onshore” playbook...
(link to the full article)
     
Cyberport Macro Fund brings in HK$259 million of investments for four start-ups
June 30, 2020
(Press Release) - During the first five months of 2020, the Cyberport Macro Fund (CMF) injected a total of HK$28.2 million into four Cyberport start-ups, at the same time raising co-investments of HK$231 million, making total capital raised at HK$259 million (US$33.4 million).
   
AQUMON, CapBridge, GetLinks, and OneDegree, which specialise in AI robo-advisory, investment syndication, HR technology, and virtual insurance respectively, received seed or Series A capital to bolster their growth...
(link to the full article)
     
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