| HKVCA Asia Private Equity Forum 2017 | | The Hong Kong Venture Capital and Private Equity Association’s (HKVCA) annual Asia Private Equity Forum (APEF) was held on 18 January, 2017 at the Hong Kong Convention and Exhibition Centre. The theme of this year's event focused on the many challenges but also opportunities that exist for value creation within the industry, and featured more than 80 expert speakers and panelists representing general partners, limited partners and advisors. The Forum attracted over 650 delegates, of which more than half were senior level and C-suite executives.
As it has in previous years, the 2017 Forum brought together a diverse and experienced groups of private equity and venture capital practitioners who invest across all stages and geographies in Asia, including private equity real estate and private debt. Among the topics discussed as part of the event’s programme were the key issues emerging in fundraising, investor relations, performance reporting and investor demands for greater attention to environmental, social and governance standards. There was also discussion on the current issues facing investors in private markets in the making, managing and exiting of investments across the key markets of Asia, and the important role that Asia continues to play in the global market.
As this is the year in which the HKVCA commemorates the 30th anniversary of its founding, the Forum also provided the Association with a tremendous opportunity to reaffirm its commitment to extending its reach to all sectors of the profession. Among the distinguished guests who participated in APEF 2017 were Mr. Paul Chan Mo-po, GBS, MH, JP, Financial Secretary of the Hong Kong SAR; Mr. Martin Mok, Partner and Head of Asia of EQT Partners; Mr. Jean Salata, Chief Executive and Founding Partner of Baring Private Equity Asia; and Mr. Ming Lu, Head of Asia Private Equity for KKR.
We are proud that the Asia Private Equity Forum has come to be seen as an indispensable platform for practitioners to meet not only their peers, but also government representatives and professional colleagues from other industry associations across the globe. We would like to thank our extremely knowledgeable audience of attendees, many of whom traveled from around the region and overseas. Our most sincere appreciation extends also to our valuable media partners and supporting organizations, and, finally, to our generous sponsors, whose substantial contributions and support made the event not only possible, but indeed hugely successful. Please click here for Mr Paul Chan's speech.
Media coverage can be viewed here.
More photos can be viewed here.
Video highlights can be viewed here.
| The HKVCA held its Gala Dinner 2017 on the evening of Tuesday, 17 January. This popular annual event, which this year was sold out, had more than 200 attendees who gathered at the elegant Hong Kong Country Club to enjoy an evening of great food and excellent entertainment. Each of the tables at the dinner featured creative and colorful decorations incorporating themed figures representing the festivities associated with the upcoming Chinese New Year of the Rooster. The evening’s entertainment was perhaps the major highlight of the night, with a unique yet totally captivating performance delivered by a group of students from Kings College Hong Kong who each played the harmonica. The HKVCA was pleased to be able to make a donation to support the young musicians dedicated to the development of this often overlooked instrument. The evening also featured a presentation outlining the HKVCA’s 2016 activities and outstanding achievements throughout the year. We would like to extend our special thanks to our cocktail sponsors, King & Wood Mallesons and MVision, for supporting this tremendously successful event. Our thanks also to all participants who helped to make our annual dinner a most unforgettable and wonderful night.
More photos can be viewed here.
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| The HKVCA is proud to have published the fourth issue of our research journal, the theme of which is "Discovery Issue".
We hope that this publication will provide strategic insight and much food for thought for government officials, entrepreneurs and business people alike, as we believe, acting together, Hong Kong can continue to strengthen its position as the leading hub for private equity and venture capital in Asia.
Finally, we want to express our gratitude to all of those who contributed to this issue of the Journal and to the editorial team, including Alain Fontaine, Denis Tse, Joseph Ferrigno and T.K. Chiang. We hope that this issue and the issues to come will be a useful platform for sharing HKVCA members’ stories and ideas, and that they may inspire investors and members of the private equity community worldwide.
For further enquires and to offer your feedback, please don’t hesitate to contact Alfred Lam at alam@hkvca.com.hk.
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New Members Welcome
Corporate Full Members
Blue Ocean Capital Advisors Ltd
Blue Ocean Capital Group (BOCG) manages both RMB and USD funds with a total amount of US$350m under management. Since the fund was founded, BOCG has focused on the promising and familiar sectors of healthcare, TMT and film investment, specifically buyouts, cross-border and significant growth strategy investments.
Hippocorn Capital
Latitude Capital Management
Founded by Rajiv Shah, former head of the U.S. Agency for International Development, Latitude Capital is a private equity firm focused on power and power-related projects in select emerging markets, with a specific focus on Africa and India. Its team brings trusted global relationships, deep industry and operating expertise, and experienced private equity leadership to the task of developing and implementing power projects in emerging markets.
LAV Management (Hong Kong) Company Ltd
Founded in Shanghai, LAV began investing in China healthcare in 2008, which its management believes makes LAV one of the longest and most well-established healthcare fund managers in the market.
Queen’s Road Capital
Queen’s Road Capital is a Hong Kong-based venture capital firm focused on investing in TMT opportunities within the Asian region.
Corporate Associate Member
Huisheng Consulting
Founded in 2011, Huisheng Consulting offers pre- and post-investment services focused predominantly on due diligence investigations and risk assessments for top domestic and international investors. It has a strong track record steering investors clear of problematic and high risk investments, such as where FDD is not sufficient to uncover the true status of an investment opportunity.
Overseas Full Members
Starcom Ventures Incorporated
Starcom manages private equity funds and venture capital direct investment in Europe and Asia. Its expertise includes venture capital projects, loans, searches for investors, direct investment, investment projects and searches for investment management in Europe and Asia. Starcom Ventures employs professionals with knowledge of a variety of industries and experience to conduct transactions in mergers and acquisitions, as well as to attract financing, pursue risk analysis and establish management. A significant number of complex transactions have been carried out with the participation of Starcom Ventures Inc.
TVM Capital Healthcare Partners Ltd.
TVM Capital Healthcare Partners is a specialist private equity firm that invests in emerging markets in the MENA region, Turkey, India and Southeast Asia, meeting growing demand for high quality healthcare provision. It began operations in Dubai in and is regulated by the Dubai Financial Services Authority (DFSA). TVM undertakes extensive research to identify unmet needs, and invest in companies with high potential for rapid growth. Crucially, the management of these companies must be experts who are totally dedicated to delivering world-class service. TVM believes that private equity investment should be a force for good, and by working in the area of healthcare, it has a real opportunity to make a difference to patients’ lives.
Verlinvest Asia Pte Ltd
Verlinvest was founded in 1995 as a family-owned, consumer-focused, diversification investment holding company. Today Verlinvest manages assets of over US$1.4 billion across multiple geographies.
Recent Events Report
AFF Deal Flow Matchmaking Session
17 January 2017
The AFF Deal Flow Matchmaking Session was successfully held on the second day of the Asian Financial Forum (17 January 2017). More than 1,000 companies have taken part in this deal sourcing and matchmaking session over the years, including investment project owners, corporate investors, high net worth individuals, and senior professionals from intermediaries and professional services providers. This unique deal-sourcing and matchmaking session co-organised by the Hong Kong Venture Capital and Private Equity Association and the Hong Kong Trade Development Council, connected sources of funds with sources of deals with enabled participants to meet with potential business partners from around the world, based on their shared areas of interest. More than 160 investors, 300 project owners and 600 meetings took part this year representing a number of different sectors, including agriculture, biotechnology, consumer, construction, food and beverage, healthcare, infrastructure, medical, real estate, technology and PE/VC funds.
HKVCA Breakfast Meeting
6 January 2017
The HKVCA's monthly breakfast meeting was held at the Hong Kong Club on Friday, 6 January. The event was oversubscribed, with more than 70 members taking full advantage of the opportunity to network and reconnect with their fellow industry practitioners after the end of year festivities. To commemorate this first breakfast meeting of 2017, the HKVCA conducted an informal and fun poll surveying members’ views on the outlook for the global and Chinese markets in 2017, as well as who they believed would be the next chief executive of Hong Kong. The results of the very unscientific poll were best described as being “positive”.
This month's breakfast would not have been possible without the sponsorship of Intertrust to whom we would like to extend our sincere thanks for their continued support and help in making this terrific networking event possible for our members. We of course also wish each and every one a very happy New Year and best wishes for 2017.
Industry News
Francisco Partners Completes the Sale of Source Photonics to Redview Capital and Asia-IO 20 January 2017
(Press Release) - Source Photonics, a leading provider of optical components and modules, today announced that Francisco Partners has completed the sale of the company to a private equity consortium led by Redview Capital and Asia-IO, with participation from investors including TR Capital, Axiom Asia and Aberdeen Asset Management. Source Photonics is a global provider of communications and data connectivity components and modules in next-generation datacenters, mobile and fixed-line networks.
View full article here HK$2b tech start-ups fund ready to assist mid-year 18 January 2017
(The Standard) - The HK$2 billion Innovation and Technology Venture Fund under which eligible venture capital funds are being welcomed as partners to co-invest with the government in Hong Kong’s technology start ups, will begin operation by the middle of this year, the Chief Executive Leung Chun-ying said today.
He added that through the technology start-up support scheme for universities, the government has subsidized six local universities to set up over 120 technology start-ups, turning their research and development deliverables into businesses. View full article here Suzlon set to raise Rs800 crore from PE firms Asia Climate Partners, Olympus 11 January 2017
(Livemint by Swaraj Singh Dhanjal) - Wind turbine maker Suzlon Energy Ltd is set to raise Rs800 crore (around $120 million) from private equity investors Asia Climate Partners (ACP) and Olympus Capital Asia to create a renewable energy platform, two people aware of the development said.
“Suzlon has been in talks with investors to create an independent platform to invest in and to acquire renewable assets for the past few months,” one of the two said, requesting anonymity because the talks are private. “The talks with Olympus and ACP are in a very advanced stage and the transaction is expected to close very soon.” View full article here Citic, Carlyle pay US$2.08b for McDonald’s Hong Kong, China franchises 9 January 2017
(SCMP by Xie Yu) - McDonald’s Corp. said it will sell 80 per cent of its fast-food restaurant business in Hong Kong and mainland China in a deal valued at HK$16.14 billion (US$2.08 billion) to the largest Chinese international trust company and US private equity firm Carlyle Group.
After the cash-and-shares transaction, CITIC and CITIC Capital will own a 51 per cent controlling stake, while Carlyle will own 28 per cent. McDonald’s, based in the state of Illinois, will keep a 20 per cent interest in the company, according to a press release by the three companies. View full article here
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