The HKVCA’s Private Equity Fundamentals Course, our comprehensive training course aimed at enhancing knowledge of the core fundamentals of private equity and venture capital, was held over six separate days beginning in September and ending in November. We were especially pleased this year to have had the support of the Hong Kong Exchanges and Clearing Limited, Hong Kong University’s MBA program, as well as the MBA program at the Hong Kong University of Science and Technology.
Two of the sessions, dealing with early stage investment and private equity basics, were completed on September 21st and 23rd, while additional modules, on transaction documentation and post investment matters, as well as a session dedicated to discussing case studies, were completed on September 30th and October 5th and 7th respectively. The final module, which covered tax, the LP universe and fundraising, was completed on November 2nd. The course was well attended with around 80 registrants.
The Association would like to extend a special thank you to our speakers: - Marvin Lai from the HKVCA and iTM Ventures c/o Burgeon Group Consulting, who provided an introduction to the subject of early stage investment, the screening process and valuation.
- Scott Peterman from Jones Day, who spoke on negotiations and term sheets.
- K O Chia from the HKVCA and Grace Financial, who discussed early stage post investment, exits and provided an introduction to private equity.
- Pratima Divgi from Aberdeen Asset Management, who delivered an overview of private equity in Asia.
- Lorna Chen and Anil Motwani from Shearman & Sterling, who discussed established PE funds.
- Philip Li from Freshfields Bruckhaus Deringer, who took attendees through the latest regulatory issues in China.
- Vincent Warner from Chepstow Capital, who spoke about deal sourcing and due diligence.
- Robert Kwok of Ernst & Young, who discussed valuation issues.
- William Ho of CVC Capital Partners, who highlighted the differences between equity and debt financing.
- Patrick Yip, Roy Phan and William Lee of Deloitte, who discussed complex tax issues.
- Maurice Conway and Douglas Abernethy from Latham & Watkins, who spoke on deal protection and risk allocation issues.
- Rocky Lee from Cadwalader, Wickersham & Taft LLP, who discussed non-leveraged/VC transactions.
- Andew Whan and Neeraj Budhwani from Clifford Chance, who spoke on buyouts.
- John Levack from the HKVCA and Electra Partners Asia, who covered management of portfolio companies.
- Miranda Tang and Michael Chan from CLSA Capital Partners and Hong Kong Exchange and Clearing, who discussed exit strategies.
- Jane Lin from International Finance Corporation, who discussed ESG.
- Benjamin Rhys from KPMG, who spoke on the accounting of private equity funds.
- Wendy Zhu from AlpInvest Partners and Kallan Resnick from Park Hill Group, who discussed the LP universe.
- Malcolm Prebble from KPMG China, who spoke on tax considerations in structuring PE funds.
- Professors Roger King and Winne Peng from HKUST; Oscar Chow from Polaris Holdings; Alvin Lam from CVC Capital Partners; and NiQ Lai from Broadband Network presented and delivered the case studies.
| | A Good Time for Asian Investment
Daniel Mintz believes that, despite the ups and downs, it’s still a healthy time to invest in Asia - but don’t ever call it easy
Daniel Mintz is Co-Founder and Managing Director of Olympus Capital Holdings Asia, an independent private equity firm that has been investing in middle market companies across Asia for nearly 20 years. Since its founding in 1997, Olympus has invested more than US$2 billion of equity capital in more than 50 portfolio companies throughout Asia, including China, India, Japan, South Korea and southeast Asia. Its team of over 50 experienced investment professionals and senior advisors are located in Hong Kong, New Delhi, Seoul, Shanghai, Singapore, and the United States.
Olympus invests on behalf of its global investor base - pension funds, government entities, financial institutions, endowments and family offices - in several industry verticals that target domestic markets in Asia and benefit from strong growth trends, including financial services, food and agribusiness, healthcare and environmental and clean energy. Currently a key theme for Mintz is on financial services across the region. A number of major trends including implementation of the Basel regulations and tightening compliance by regulators are making it harder for larger institutions to compete, thereby creating niche opportunities for non-bank capital providers.
“As a private equity firm, we have been investing in specialized non-bank lenders and service providers that that are taking advantage of these opportunities. Right now it’s not necessarily a good thing to be big and over-diversified. There are a lot of regulations and constraints, and if you can be nimble as a smaller institution, focus on target markets that are perhaps being ignored or are seen as too costly for banks to compete in, like microfinance , there can be tremendous excess returns there,” Mintz says.
Over the past two years China has experienced some economic headwinds. As a long time investor in Asia, including China, does Mintz think this is a blip or a fundamental step change in the investment environment?
“The fundamentals that drove the enormous growth in the Chinese economy, and certainly the tremendous human capital, are still there. Obviously China is shifting to a more consumer-driven market as it must do, and it’s not going to be a perfectly smooth shift. But from our perspective, when you invest in fundamental sound and well managed businesses that are cash flow positive, then even when times are challenging these businesses are going to be okay. What we have learned after experiencing so many cycles in Asia, is that you find the companies and management teams you like, you capitalize them conservatively so they can withstand some volatility – and better yet take advantage of it to improve their competitive position -- and be well positioned to realize value when the good times return.”
“Recently, a lot of investors have reduced their activity in emerging markets including Asia in order to increase exposure in the U.S., and this has created opportunities for firms like Olympus that are dedicated to investing in Asia,” he says.
“Compared to the U.S. and Europe, there is more balance in Asia between the supply and demand of capital; despite the ups and downs the secular trends in most Asian economies are very positive. We can argue about the exact level of growth, but when you can invest at a good price you know you’re doing so against a backdrop of strong fundamental growth in consumer demand and requirements in “Asia. So it does feel like an attractive time to invest in Asia - but I would never, ever, call it easy,” he concludes.
| | _ | | Limited Seats Available | Members Only Event |  | | HKVCA Members Breakfast Meeting - November | | Sponsored by |  | | | Date: | 4 November, 2016 (Fri) | | Time: | 8:00-9:00 | | Venue: | Victoria Suite, Hong Kong Club, 1 Jackson Road, Central, HK | | (Room reserved under the name of Mr. Johnny Chan) | | Fee*: | Full Member (Corporate): one free pass per company | | *Note, free pass no shows will be charged full price | | Associate Member/ Full Member (additional pass): HK$280 | | *An additional charge may apply to accommodate special dietary requests. | |  
|  | | Advanced Training Course | | The HKVCA's Private Equity Advanced Course focuses on training intermediate to senior level professionals across Asia. The upcoming Fundraising Masterclass is part of a mid-level training syllabus aimed at providing in-depth information on fundraising techniques and structures to professionals seeking to deliver presentations and proposals to institutional investors. It is particularly suitable for those professionals who are planning to execute a round of fundraising and would like to maintain a relationship with LPs. Please see a detailed agenda below. | | Speakers: | Mounir Guen, CEO, MVision | | Dennis Kwan, Managing Director, MVision | | Justin Dolling, Partner, Kirkland & Ellis | | Carol Liu, Partner, Kirkland & Ellis | | View speaker's bio here. | | Date: | 18 November, 2016 (Fri) | | Time: | 10:00 - 13:00 | | Venue: | HKUST Business School Central, | | 15/F, HK Club Building, Central, Hong Kong | | Fee*: | HKVCA Members: HK$1,300 per person | | Non Members: HK$2,600 per person | | CPT: | 3 points | |
| | By Invitation Only |  | HKVCA LP Brownbag Luncheon Talk -
VC Financing Structuring and Its Enforcement | | Sponsored by |  | | Speaker: | Rocky Lee, Asia Managing Partner & Head of Great China | | Corporate Practice, Cadwalader, Wickersham & Taft LLP | | Date: | 11 November, 2016 (Fri) | | Time: | 12:30-14:00 | | Venue: | HKEx Boardroom, 1/F, HK Exchanges and Clearing, Exchange Square 1&2, Central, Hong Kong |
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Please contact Colin Tam (ctam@hkvca.com.hk) for enquiries and registration.
| | Limited Seats Available | | HKVCA Brownbag Luncheon Talk -
SEC Regulations on Investment Fund Managers: Trends and Updates | | Sponsored by |  | | | Speaker: | Lorna Chen, Partner, Shearman & Sterling
View speaker's bio here. | | Date: | 30 November, 2016 (Wed) | | Time: | 12:15-14:00 | | Venue: | Shearman & Sterling Office, 12/F Gloucester Tower, The Landmark, 15 Queen's Road Central, HK | | Fee*: | Full Member (Corporate): one free pass per company | | *Note, free pass no shows will be charged full price | | Associate member/ Full Member (additional pass): HK$200 | | Non-member: HK$400 per person | | CPT: | 1.5 points | |
|  | | | | Sponsored by |  |  | | This event offers an excellent opportunity for networking with fellow professionals and for celebrating the holiday festivities with both colleagues and friends. We are also honored to have recently elected HKVCA Vice Chairman, Rebecca Xu, of Asia Alternatives Advisor Hong Kong, joining us for the evening. | | Date: | 8 December, 2016 (Thur) | | Time: | 18:00 - 20:00 | | Venue: | The China Club, 15/F, The Old Bank of China Building, | | Bank Street, Central, Hong Kong | | Fee: | Full Member/ Associate Member: HK$350 per person | | Non Member: HK$700 per person | | Priority is given to HKVCA Members | | Canapés and unlimited drinks including house wines, spirits, beer, fresh orange juice, soft drinks and water (mineral or sparkling) | |
| | Limited Seats Available | Members Only Event |  | | Cocktail Sponsors: |  | | Date: | 17 January, 2017 (Tue) | | Time: | 18:30 - 21:30 | | Venue: | The Hong Kong Country Club | | Fee: | Early bird rate (payment on or before 30 November 2016) | | Full table (12 persons): HK$19,800 | | Half Table (6 persons): HK$9,900 | | Individual: HK$1,980 | | | | Please return your completed registration form to Kamy Chan (kamy@hkvca.com.hk). |
|  |  | | View all sponsors here | | Date: | 18 January, 2017 (Wed) | | Time: | 8:30 - 17:30 (followed by cocktail reception) | | Venue: | S421, Hong Kong Convention and Exhibition Centre (Old Wing), | | 1 Expo Dr, Wan Chai, Hong Kong | | Fee: | Early bird rate (payment deadline: 30 November 2016) | | Corporate Full Member: One free pass per company | | Corporate Full Member (Additional Pass) / Corporate Associate Members: HK$3,300 HK$4,500 per person | | Overseas Full / Associate Members:
HK$3,300 HK$4,500 per person | | Non Member: HK$6,800 HK$7,800 per person | | CPT: | 6.5 points | |
|  | | HKVCA 14th Annual Golf Day 2017 | | Platinum Sponsors |  |  | | Gold Sponsors |  |  | | Date: | 3 March, 2017 (Fri) | | Time: | 7:15 Check-in and breakfast | | 8:15 Shortgun start | | Venue: | The HK Golf Club (Fanling) | | Fee: | Early Bird Rate (Payment by 8 December 2016) | | HKVCA Member: HK$2,600 HK$2,900 | | Non Member: HK$3,500 HK$3,800 | | *fee inclusive of golf cart, light breakfast & lunch | | | | Please return the completed registration form to Kamy Chan (kamy@hkvca.com.hk). |
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HKVCA Supporting Events:
FINNOVASIA Academy Workshop: The Future of FinTech In China
7 November 2016
7th ATTA Annual Conference
10-12 November 2016
APAC Innovation Summit 2016 Series -
Angel x Angel 2016: International Angel Investment Symposium
11 November 2016
GGEF Roundtable 2016
14 November 2016
The 29th Annual AVCJ Private Equity & Venture Forum
15 - 17 November 2016
APAC Innovation Summit 2016 Series -
Advanced Materials & Printed Electronics
22 November 2016
HKiNEDA The Greater China INED Forum
22 November 2016
CVCA Annual General Meeting & China Private Equity/Venture Capital Summit 2016
29 - 30 November 2016
Business of IP Asia Forum
1 - 2 December 2016
InnoDesignTech Expo
1 - 3 December 2016
"Insights into High-Performance Boards from an International INED" by Carl Bates
5 December 2016
EY Entrepreneur Of The Year 2016 China
2016 | | | . | |
New Members Welcome
Corporate Full Members
Alpha Achieve Limited
Alpha Achieve Limited (AAL), based in Hong Kong, invests in growth capital opportunities in the People’s Republic of China, focusing on the consumer services, TMT, information technology, clean tech and health care sectors. AAL looks for long term investment opportunities with appreciation potential. Growth stage opportunities attractive to AAL typically have early revenue and are often profitable. AAL invests primarily into onshore enterprises that are, at the time of investment, already existing CJV or EJV structures, which allow for domestic China enterprises to receive foreign equity investment.
HT Capital Limited
HT Capital Limited (HTC) is an independently owned asset and property management company based in Hong Kong. Established in 2013, HTC focuses on seeking new investment opportunities with extraordinary and untapped potential, striving to obtain the highest possible yield.
Corporate Associate Members
Berkeley Research Group (Hong Kong) Limited
Berkeley Research Group is a leading global strategic advisory and expert consulting firm that provides independent advice, data analytics, financial analysis, authoritative studies, expert testimony, and regulatory and dispute consulting to Fortune 500 corporations, financial institutions, private equity funds, government agencies, major law firms, and regulatory bodies around the world.
Linnovate Partners Limited
Linnovate Partners is a Hong Kong-based boutique private equity asset servicing firm that aims at serving as a business platform bringing simplicity to complex operations through our innovative services model for the alternative investments industry. We bring new insight to financial technology and define cutting-edge intelligence asset services. Linnovate Partners’ dedicated services include fund services, portfolio monitoring and technology consultancy.
Richful Deyong International Business (China) Limited
Richful Deyong Group has 12 branches in mainland China and two offices in Hong Kong. Our Team is composed of over 500 financial and management consultants. We have successfully built our commercial network across 30 international regions, providing a wide range of services. As a professional consultant company, we provide our broad range of clients from around the world with internationally diversified services, including company registration, company secretarial, business management, bookkeeping, taxation, brand building, tax planning, company listing, project financing, intellectual property, offshore trade and investment, and asset evaluation, etc.
Recent Events Report
HKVCA Brownbag Luncheon Talk
14 October 2016
A Brownbag Luncheon Talk, titled “The Road to the New Third Board”, was held on 14 October, 2016 at the Deloitte offices. Close to 60 persons attended the popular event, which featured a full and very informative discussion on the New Third Board moderated by SC Mak, co-founder of FUEL Capital. Also speaking at the Luncheon was Vivienne Li, Deloitte Audit Partner & Partner of the Public Offerings Group in Southern China; and Suzie Wui, Ph.D., Managing Director of Tianxing Capital, League Secretary General of the China New Third Board Alliance and Board Director of Hebei Lizhou Bank. Among the topics discussed were the latest developments in the market, including listing criteria and regulatory updates, as well as the most common issues raised by the regulatory authorities with respect to applications for listing on the Board. We would like to thank our knowledgeable speakers and offer our special thanks to our sponsor, Deloitte, whose support made this important event possible.
HKVCA Breakfast Meeting
7 October 2016
The HKVCA’s monthly breakfast meeting was held at the Hong Kong Club on 7 October, 2016. Hosted by our Chairman, Eric Mason, the event was again substantially oversubscribed and, as has been the case in previous months, proved to be an extremely popular activity for our members. Close to 70 persons attended, allowing them to take full advantage of this valuable opportunity for networking and for reconnecting with their industry peers and fellow practitioners. We would like to thank each of our members for their enthusiastic participation as well as our sponsor, EY, for making this popular event such a success.
Industry News
ADIA to open Hong Kong office
27 October 2016
(AVCJ by Holden Mann) - Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund of the government of Abu Dhabi, has announced plans to open an office in Hong Kong.
ADIA Hong Kong will be headed by Dong-Sinh Ngo, its newly appointed chief representative for Asia Pacific, according to a release. The office is intended to help ADIA identify new investment opportunities by improving its network of relationships in China and other Asian markets.
The fund invests across a wide range of asset classes. According to its most recent annual review, investments in developed markets in Asia account for 10-20% of the portfolio. China and India were noted to show a great deal of promise based on ongoing reform efforts focused in China on integrating its capital markets into global markets and in India on opening its markets to outside investment.
View full article here
DemystData Lands New $7 Million Round
27 October 2016
(Finovate by Julie Muhn) -
Data as a service company DemystData announced this week it closed a $7 million Series B round led by MissionOG. Notion Capital and Singtel Innov8 also contributed to the round, which boosted the New York-based company’s total funding to $16 million.
DemystData will use the funds to build its team and expand data partnerships in order to meet increased demand in the U.S. and Asia. The company leverages big data pulled from in-house and online sources to help banks make informed decisions, improve the user experience, and decrease risk. DemystData counts some of the world’s largest banks and insurance companies across 10 countries as customers.
View full article here
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