Dear Subscriber,

Upcoming Event

Members Only Event

Date:	March 7, 2014 (Fri) FULL
Time:	08:00 - 09:00
Venue:	Hong Kong Club, 1 Jackson Road, Central, HK
Fee:	Full Member (Corporate): One free pass per company
	Full Member (Additional pass)/ Associate Member: HK$250

Sponsored by:

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HKVCA 11th Annual Golf Day 2014 FULL

Platinum Sponsor:

Gold Sponsors:

Luncheon Sponsor:

Breakfast Sponsor:

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Members Only Event

Technical Series - Regulatory Updates on SEC and PE/VC in China

Date:	April 2, 2014 (Wed) Limited Seats Available
Time:	12:30 - 14:00
Venue:	Conference Room of Kirkland & Ellis, 26th Floor, Gloucester Tower, The Landmark 15 Queen's Road Central, Hong Kong
Fee:	Full Member (Corporate): One free pass per company Full Member (Additional pass)/ Associate Member: HK$200
CPT:	1 point

Speakers:
Richard Guo, Partner, Fangda Partners
Bao Chen, Partner, Fangda Partners
David Zhang, Senior Corporate Partner, Kirkland & Ellis
John Otoshi, Senior Corporate Partner, Kirkland & Ellis
Benjamin Su, Corporate Partner, Kirkland & Ellis

Full Speakers Bio

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Date:	April 9, 2014 (Wed)
Time:	18:30 - 20:30
Venue:	Harcourt Suite, Hong Kong Club, 1 Jackson Road, Central, HK
Fee:	Full Member/ Associate Member: HK$400
	Non-member: HK$850

Sponsored by:

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Members Only Event

Structuring GP Arrangements: Carried Interest, Governance
and Pitfalls

Date:	May 13, 2014 (Tue)
Time:	12:30 - 14:00
Venue:	Suites 1701-1705, 17/F, Two Exchange Square, 8 Connaught Place, Central, Hong Kong
Fee:	Full Member (Corporate): One free pass per company Full Member (Additional pass)/ Associate Member: HK$200
CPT:	1 point

Speaker:
Lynn Chan, Consultant, Proskauer

Full Speaker Bio

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Save the Date

Date:	June 13, 2014 (Fri)
Time:	8:30 - 17:30 followed by Cocktail Reception
Venue:	N201, Hong Kong Convention and Exhibition Centre
CPT:	6 points

Platinum Sponsors:

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Gold Sponsors:

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Silver Sponsor:	Cocktail Sponsor:

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Organised by:	Co-organised by:	Media Partner:

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Save the Date

*Topics included:

Early Stage Investment
Module 1: PE Basics
Module 2: The Investment Decision
Module 3: Transaction Documentation
Module 4: Post Investment
Module 5: LP Universe & Fund Raising
Case Study: Pacific Coffee
Case Study: GE Equity

Date:	Sep - Oct, 2014 (date to be confirmed)
CPT:	3 points per module, 1.5 points per case study

*The above information is subject to change until final confirmation.

Expert Opinions

The Association is now committed to providing original research that will give members and the profession a greater voice with government and the people of Hong Kong

In its continuous effort to improve the capabilities of the Association, the HKVCA’s Executive Committee recently approved the appointment of a Research Committee, headed by former co-chair of the Venture Committee, Denis Tse.

Tse is the Head of Private Investments - Asia at Lockheed Martin Investment Management Company, one of the few corporate pension managers that operate an office in Asia. Tse, who has been with the company for five years, covers the illiquid strategy across the Asia-Pacific region, which includes private equity and venture capital, real estate and distressed debt, primarily through investing in funds.

According to Tse, one of the propelling factors for the HKVCA to establish a dedicated research effort is the recent resurgence of entrepreneurial activities in Hong Kong and the potential role of private equity and venture capital in such development. “We have a lot of private equity investors based out of Hong Kong but few of the investments reside in Hong Kong. I thought it might be interesting to focus on that issue and write about the implications. If we are to more systematically source opportunities from Hong Kong we could potentially find very good business opportunities. And from a societal perspective maybe it’s a new dimension from which to grow the local economy." That has resulted in the HKVCA releasing a brown paper on the relationship between private equity, venture capital and entrepreneurial enterprises in Hong Kong in 2012.

“Interestingly, within about 18 months of writing that paper government departments began to pay attention – they started to talk about VC programs and supporting local businesses - and then we had InvestHK's StartmeupHK campaign last year. The involvement of HKVCA members certainly has played a part in whetting enthusiasm in the public sector,” he said.

The increased interaction with the government and the resulting need to communicate domain expert opinion to a broader audience motivated the HKVCA to undertake an organized effort to research. For example, the new Research Committee is expected to complement the work of the Education and Technical Committees, particularly where there is a need for primary statistical backing to substantiate the “why” of a proposal. “Where we have to make a case for something this is where the HKVCA’s new full time researcher will come into play. He will run the numbers, he will crunch the data, he will do the primary work for us,” Tse enthused.

The research that the committee will lead isn’t just about collecting data and trying to interpret it, Tse envisioned. "Borrowing experience from venture capital associations in other countries, the research function can be a communication conduit for the Association, to let it be known that we are experts in matters such as financing growth and entrepreneurship, innovation investing, and private investment programs of institutional investors including sovereign wealth funds, etc., and that if the government wants to engage us more, it can.”

The research that the committee will lead isn’t just about collecting data and trying to interpret it, Tse said. He would like the research to provide an opportunity for the Association to voice its members’ opinions and be heard. “The research should be a mouthpiece for the Association, to let it be known that we are experts in an area that is specialized and that if the government wants to engage us more, it can,” he said.

However, Tse emphasized, "At the end, the Association must only focus on research that is accretive to our constituency – that is our members." The first step towards creating and defining the work of the Research Committee was to canvas the opinions of full members. A questionnaire was sent to them in February outlining 10 possible research projects and they were asked to provide their feedback in terms of which projects they wanted the Research Committee to pursue this year.

The projects that garnered the most support were as follows:

A performance data-sharing collaboration with Cambridge Associates where HKVCA members contribute performance data to the consultant in exchange for access to benchmarks customized for the association.
An annual compensation survey.
An annual LP investment sentiment survey
The creation of an open source local deal database, which will help facilitate VC/PE deal origination locally in Hong Kong.
Thought papers promoting private equity/venture capital perspectives to policymakers – released half-yearly in conjunction with a press meeting and oriented for a general audience and the business press.

"We will have to prioritize and may not cover all the projects members desire, given that the Association is just at the beginning of building its research staff resources," Tse said. "But I am optimistic that our members will find our research deliverables quite enriching."

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Other Supported Events:

Global Investment Performance Standards (GIPS) Workshop Series
10 March 2014 by HKSFA

Nordic Tech Company Roadshow
18 March 2014 by China-Finland Golden Bridge Innovation Center

SVCA Private Equity Conference
15 April 2014

The 4th Annual SuperReturn China 2014
7 - 9 April 2014

Entrepreneur Day 2014 "Fund & Mentor" Session
2 May 2014 by HKTDC

AVPN’s 2014 Annual Conference
14-15 May 2014

New Members Welcome

Full Member

Fujian Kun Ze Investment Ltd

Global NSP Investment Funds Management Co., Limited

TVG Capital Partners Limited

Trustbridge Partners

Trustbridge Partners is a private equity fund focusing on investing in growth capital opportunities in China. Trustbridge currently manages four funds, and is one of the leading investors in China’s Internet and new economy sector, as well as its healthcare sector. Trustbridge has close to 30 professionals, managing a total capital commitment of over USD1.5 billion.

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Associate Member

AlixPartners

AlixPartners is a leading global business advisory firm of results-oriented professionals who specialize in creating value and restoring performance at every stage of the business lifecycle. We thrive on our ability to make a difference in high-impact situations and deliver sustainable, bottom-line results. The firm’s expertise covers a wide range of businesses and industries whether they are healthy, challenged or distressed.

Bingham McCutchen LLP

Bingham’s market-leading practices are focused on global financial services firms and Fortune 100 companies. We have more than 1,000 lawyers in 14 offices spanning the U.S., Europe and Asia, including New York, London, Frankfurt, Beijing, Hong Kong and Tokyo. We are involved in private equity fund formation, equity, debt and M&A transactions on behalf of private equity funds and we advise clients on their related regulatory obligations.

Frost & Sullivan

Frost & Sullivan is an independent global consulting firm, which was founded in 1961 in New York City. It offers industry research, market strategies and growth consulting. Its industry coverage includes automotive and transportation, chemicals, materials, aviation, consumer and luxury goods, energy, environmental and building technologies, healthcare, industrial products and electronics, technology, media & telecom and metals & minerals.

Monument Group (HK) Limited

Monument Group is an independent placement agent that has assisted our clients in raising 66 private funds, totaling over $75 billion of equity, since our inception in 1994. Our business has remained consistent over time: working with leading general partners across a broad range of alternative asset classes to raise private funds from institutional investors globally.

Silicon Valley Bank

Silicon Valley Bank (SVB), financial partner to the global innovation economy, is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its private equity and venture capital fund/corporate clients in Asia and worldwide.

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Oversea Associate Member

China-Finland Golden Bridge

China Finland Golden Bridge is a service platform for Chinese VC/PE investors and high-tech companies looking for business opportunities in innovation and market expansion in Europe, Nordics and Baltic area. Golden Bridge is a cross-national project supported by Chinese Ministry of Commerce (MOFCOM) and Finnish Ministry of Employment and Economy (MEE).

Guangzhou Meixin Investment Company Ltd

Guangzhou Meixin Investment Co Ltd is a Guangzhou-based investment company which focuses on offering financing solutions to the Mainland companies, especially those in the real estate industry. We also provide overseas financial advisory services with the collaboration from our partners in Hong Kong. We do engage in direct investments, as well as consolidate investment resources in the region for our clients.

Recent Events Report

HKVCA Members Breakfast Meeting
Feb 14, 2014

On February 14, 2014, the always popular monthly breakfast meeting was again oversubscribed with a record 65 members in attendance. Thanks to all members and guests who supported this great networking event, a successful start to the new year of the horse.

Brownbag luncheon - Transferring deal risks to the insurance market
Feb 27, 2014

On February 27, 2014, a luncheon talk was held at the offices of Latham & Watkins which was attended by an audience of 30 dedicated members. Speakers Rod Brown, Corporate Partner, Latham & Watkins LLP, Sandra Lee, Regional Associate Director, Aon Mergers & Acquisitions Solutions, shared their expertise on the use of warranty and indemnity insurance and other transaction liability insurance solutions in M&A deals.

Industry News

Economists welcome further levelling of China's playing field by SCMP
Jan 30, 2014

Under policies announced this week, inbound investment of up to US$300 million will no longer need the National Development and Reform Commission's approval except in industries where there is overcapacity or in property development.

Looser regulations on inward and outward bound investment will give firms greater operational autonomy and reduce the need to curry favour with Beijing while also helping mitigate speculative hot money inflows, say economists and investors.

"This is in line with the deepening reforms that Chinese leaders were presenting during and after the third plenum in November. Generally, China will welcome and facilitate foreign and private sector investments through different policies," said Conrad Tsang, the chairman of the Hong Kong Private Equity and Venture Capital Association.

Click here to access full articles

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Pantheon Hires Partner in Asia
Feb 3, 2014

Pantheon, a leading global private equity fund investor, announced that Jie Gong has joined the Asian investment team as Partner, based in Hong Kong. Pantheon manages over USD $25 billion globally and was the first private equity fund investor to establish a local presence in Asia, opening its Hong Kong office over 20 years ago.

Click here to access full press release

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HKVCA Reopens Career Page

HKVCA members can now utilize our new career page to post recruitment information. The service is free to members. For more information, please visit here or contact HKVCA

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