The Power of the Network: Interview with
David Pierce, Chairman, HKVCA

In the nearly two years he has served as Chairman of the Hong Kong Venture Capital and Private Equity Association (HKVCA), David Pierce has had the good fortune to preside over both an association that is growing organically and an industry that is increasingly recognized as an important component of Hong Kong’s overall financial services sector. But, as he is keen to stress, the successes of the Association in that time have been the product of a collective effort.

“We, and I stress the collective ‘we’ because this is a combined effort, have accomplished a number of important things over the last few years. One of the most important has been expansion of our membership to include more limited partner investors and a number of large financial sponsors that have a significant presence in Hong Kong but whose activities may be focused principally on China or elsewhere in the region.

“Our membership increasingly reflects the fact that Hong Kong, while very much part of Greater China, is also a centre for Asia Pacific private equity,” he says.  “Many of the global firms and several large Chinese private equity fund managers have chosen to establish a significant presence here. Bringing them into the Association was a priority not only because they are important members of our community but also because they bring additional perspective and experience.”

Pierce continues: “The breadth of our membership makes the Association more effective in a number of ways.  Not least is in enhancing our ability to assist the Government in its efforts to understand our industry and what can be done to promote Hong Kong as a base for financial services generally and private equity in particular.” 

In the past couple of years, he notes, the HKVCA has been more proactive in speaking with the Government about regulatory, tax and other matters of concern to the membership. Recent Government initiatives, such as the measures announced by the Financial Secretary in the 2013-14 Budget to encourage the development of Hong Kong as a funds hub, may in part be due to this increased dialogue and flow of information.

“We want to be a resource for the Government and are keen to make sure we represent fairly how our industry affects the local economy, which is greater than many people might imagine,” Pierce says.  He notes that the HKVCA, together with the local branch of AIMA, is now working with researchers at a local university to try to quantify the impact of the alternative investment industry as a whole in terms of employment and other metrics, something which has not previously been done in Hong Kong.

Pierce also highlights the expansion, both in terms of numbers and breadth, of the associate membership. “Accounting and legal firms have always been well represented among our membership but we have expanded outreach to many other types of service providers, including fund administrators, public relations experts, information service providers, consultants, due diligence experts and forensic accountants, again reflecting the nature of Hong Kong as an important industry support base,” he says.

A high point for Pierce during his term as HKVCA Chairman has been the success of the Asia Private Equity Forum, launched two years ago and now held immediately after the Hong Kong Government-sponsored Asian Financial Forum in January each year.  The APEF and the HKVCA’s China Private Equity Summits each June, have become regular fixtures in the calendars of many industry players, each attracting hundreds of participants from around the region and the globe.

As he prepares to step down as Chairman, Pierce is optimistic about the future of the industry and Hong Kong’s place in it.  “There will be cycles, of course, but the overall trend is growth,” he says. “It is exciting to see new things continue to emerge. Forbes magazine just had an article about Hong Kong becoming a hotbed for venture investing and early stage investing.  Why not?  Hong Kong certainly has the required critical elements, including an educated and diverse populace willing to try new things and take risks,” Pierce says.

When asked why he believes members find participation in the HKVCA of value, Pierce says the answer for him lies first and foremost in the power of the network. “One of the things the Association does really well is to help bring us together, outside of our daily tasks, with people who may be able to significantly affect the way we think about things, bring us opportunities, help us achieve a specific goal or even to see a bigger picture. That is the essence of what the HKVCA does – it helps to bring people together.”

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Other Events Supported by HKVCA:

The Entrepreneur Day 2013 – Deal Flow
May 31 2013, by Hong Kong Trade Development Council

AVCJ Private Equity & Venture Forum – China 2013
May 30-31 2013, by AVCJ (Asian Venture Capital Journal)

4th Annual EURASIA – Russia (CIS) Private Equity Convention
June 17-18 2013, by Global Directors Forum Group

Seminar on Shandong – Hong Kong Outbound Investment Cooperation
August 28 2013, by HKTDC