This is HKVCA's 24th AGM and next year we will celebrate its 25th birthday. VCPE has come a long way from its early days of "Direct Investments".  It has since become a US$280 billion (2010) industry, playing an important role in fuelling the growth of China and Asia, which now stands at the economic center stage of the world.  We have witnessed many waves of changes. The financial crisis in US and Europe in 2008 brought another new order in the global economy with a strong focus on Asia. The increasing number of both foreign and domestic players into the arena makes for very exciting times in Asia.

HKVCA is mindful of its mission of supporting its members to take full advantage of opportunities that arises from these developments. It is necessary for the Association to be in step with the new developments in the markets and to respond accordingly. The HK University and Science and Technology was commissioned last year to undertake a survey in order for us to better understand the needs of our members.  The key results of the survey called for more regular and content- based events for knowledge sharing, and also for a deeper reach of professionals within our member firms. Since then we have expanded our program in education, seminars, talks and added a major Asian conference event to the calendar.  As recommended by the membership survey, a new committee, the Young Professionals Committee was set up during the year.

The Executive Committee is very pleased with its strong and fully committed team.  Despite the heavy workloads and travel schedule especially in these past few years of hectic PE activities, each of the committee members has devoted time in helping the Association in furthering its objectives.

We have 9 subcommittees each headed by Executive Committee members to develop strategy and programs in each of their areas.  

EXTERNAL
The Association adopted a higher public profile with the assistance of key members of the Executive Committee.

On a government level, HKVCA coordinated with Financial Services and the Treasury Bureau (‘FSTB’) in representing the views of the HK PE industry to the European Commission on the European Directives on Alternative Investments. We are also consulted by the Innovation and Technology Commission (‘ITC’) in identifying barriers to globalization of HK companies and are conducting surveys to assess some of the relevant factors.

Of particular importance, the HK PE sector was represented in highly important FSTB and Trade Development (TDC) missions to United Kingdom, South America, Russia and Tokyo to promote HK's financial services. These not only buttressed our relations with government entities but also helped promote Asia’s VC and PE and to ignite interest in these countries, establishing HKVCA as the first port of call when firms visit HK.

HKVCA also held discussions on the proposed US regulations for Foreign Private Equity advisors and added its endorsement to a letter to Securities and Exchange Commission (SEC).

VENTURE CAPITAL AND PRIVATE EQUITY ASSOCIATIONS ROUNDTABLE

10 associations around the region were invited to the China Summit held in Hong Kong in June 2010. The gathering of the local associations provided an excellent occasion to host a Roundtable meeting to make useful introductions and to discuss issues of common interests. In addition to the participation of the Asian VC and PE associations, and British Venture Capital Association (in person), European Venture Capital Association (via teleconference), also joined the meeting to advise the group on developments in European Union.

The Roundtable was held again this year 2011, with the addition of the India VCA and China PE Association. The CEO of and British Venture Capital Association (BVCA) Mark Florman also made a special trip to Hong Kong, while Dörte Höppner, Secretary General of EVCA called in from Brussels to provide a detailed update of the second phase of consultation on the EU regulations and its impact on Asian PE. At the meeting of the 12 Associations, it was agreed that an effort should be made to formalize the Roundtable into a more effective and coordinated body in order to produce real benefits to the Asian PE industry as a whole.

EDUCATION
The PE Fundamentals Course that started in 2009 was further streamlined and formalized.  This year a VC model was added for the entrepreneurs and angel investors.  In addition, a series of Masterclasses - on PE Holding Jurisdictions, PIPE deals - were very well received.  Others are being planned such as the Formation of RMB Funds.  A major step to enhance the curriculum is the development of Asian PE case studies by HK University of Science and Technology (‘HKUST’).  It is expected that 3 cases can be completed this year.

Our education programs boast top practitioners at senior or partner level as course instructors, with real life practical experience to share.

The Committee is always in search of interesting topics and speakers.  The popularity of the luncheon talks attests to excellent choices such as “Alternative Energy Investing”, “The Role of PE in a Portfolio”, “Gas Pipeline”.

VENTURE
It was a very full year for the Venture committee. Closer relation was forged with the Innovation and Technology Commission (‘ITC’). At the same time, links were actively maintained with the HK Science & Technology Parks (‘HKSTP’), Cyberport and the Universities in the effort to better coordinate similar objectives to help entrepreneurs grow their companies.

-There was much enthusiasm in contributing to the building of an angel platform, HK Business Angel Network (‘HKBAN’) with HK Science and Technology Parks and the Universities. Since it’s setting up in 2009, several 'pitching ' sessions of pre-screened projects had been made to the group of 'angels'.

-HKVCA organized the InnoAsia 2010 Venture Workshop, combining theories and real case studies to enrich participants’ knowledge of the entire investment cycle and their negotiation skills.

-A number of meetings with the Innovation and Technology (‘ITC’) took place, with HKVCA providing input on the building of innovative companies.  As a follow on, a survey is being conducted in an attempt to understand the problems and barriers facing entrepreneurs and VCs.

-Members of the committee also participated fully on the Admission Panel of the HKSTP Incu-Tech Program. They also represented the Association in many events and fairs during the year.

-Two social Mixers with the themes of "Movie Financing" and “Risk Management for China Enterprises” organized by the committee were highly successful, each with attendance of approximately 100.

PRC COMMITTEE
As the China Market continues to hot up with a huge proliferation of activities and players, there was an enormous call on the Association to provide additional resources in this area.  A new position of a China Coordinator was created to deal with the numerous cities, provinces and business bodies of China.  Our Committee members, notably Conrad Tsang, Vincent Chan, Alvin Ho and Alvin Li, Athene Li are kept busy all year round in representing HKVCA to promote the industry's interests in numerous events in Hong Kong and China.

THE CHINA PRIVATE EQUITY SUMMIT
The China PE Summit becomes stronger by the year, with the deep commitment on the part of the committee for it to be the best practitioner conference on PE investments in China.  The Summit stands out for its important updates on the key trends and developments, issues and challenges, solutions and initiatives, shared and fully discussed by top practitioners and leaders of the industry.  The Summit has become a 'must-attend' forum on the calendar of members and players, and this year at the 9th China Summit, participation by practitioners, corporates and entrepreneurs reached 320.

PRC EVENTS
There was active collaboration with various entities in China.  HKVCA organized an investment seminar with the Taizhou Government on “China Medical City”.  A Memorandum of Understanding with the Hong Kong China Chamber of Commerce was also signed.

An important step was in the establishment of a HKVCA Representative Office in Beijing.

RESOURCES
The charter of the committee is to bring together and leverage the resources of member firms to enrich the services provided by HKVCA. The Committee taps and vets through important information and intelligence for the members in areas as Legal, Accounting, Portfolio management, HR, Fund services, Insurance.

The Resource page on the website is becoming a very useful tool and is increasingly frequented by members. Another popular service is the “Job Opening” corner. 

The Committee interacts with the Education Committee in identifying new changes on market, rules and on other matters that are deem important for members to know.

LIMITED PARTNERS (LPs)
Hong Kong’s position as the Private Equity hub is enhanced by the increasing number of Limited Partners (LPs) using Hong Kong as its regional base, bringing the source of funds closer to the where the General Partners and the action is. This development has led to the establishment of the LP Committee to play their vital part in the industry. 

The LPs took an active role at HKVCA’s flagship conference, the China Summit and the Asian Private Equity Forum, in sharing their perspectives with other market players.    

EVENT & SOCIAL

ASIA PRIVATE EQUITY FORUM
For the first time, the Hong Kong Venture Capital and Private Equity Association with co-organizer Hong Kong Trade Development Council and global strategic partner, Emerging Capital Markets Association (EMPEA), held its inaugural Asia Private Equity Forum on January 19, 2011, in conjunction with the Hong Kong's major financial flagship event, the Asian Financial Forum. More than 30 distinguished speakers who are leading practitioners in Asia gathered to share knowledge of their markets in China, India, South East Asia and Central Asia. The audience of 240 came from across the continents from China, US, Canada, India, Europe, Russia, Australia, Japan, Korea, Taiwan and South East Asia.

GALA DINNER
After several years’ absence, the Gala Dinner was held following the Asian Private Equity Forum in January 2011.  It was a complete sell out with 200 members enjoying the opportunity to network and catch up.  Entertainment was provided by the Society of Boys Center’s talented youth.
Golf and Wine remain popular events on our social calendar, with a good following of loyal sponsors and supporters.  Not only are they fun, they are great occasions to build camaraderie and relationships.  Special thanks go to the Golf team and Wine teams.

GOLF
The 8th Golf Day held at the new venue at Shek O was a hit with the 60 players.  Everyone enjoyed the game under perfect weather conditions followed by a sumptuous barbeque lunch at the lawn and lots of laughs and quite a few good deals at the auction of hotel, dining coupons.

WINE
Simon Tam the foremost international wine consultant entertained and educated a packed house of 60 participants again at The 7th Wine Tasting.  The pairing of 6 superb wines with the choice of Western and Chinese food was a real gastronomic experience. 

YOUNG PROFESSIONALS IN ASIAN PE COMMITTEE
To deepen the reach of members, a group of young and energetic members were drawn to form the Young Professionals Committee in October 2010.  The committee was successfully launched “Young Professionals in Private Equity” with a cocktail in December 2010, attended by almost 100 members enjoying the opportunity to get to know their peers in the industry. A second equally successful networking cocktail was held on March 24, 2011 in Lan Kwai Fong.

MEMBERSHIP
The inflow of funds to Hong Kong and the establishment of new funds, together with greater benefits and value HKVCA now brings to members were all factors that contributed to the growth of membership from 173 members at the end of 2009 to 205 as of today.

An important initiative this year was the launch of the HKVCA e-Platform to facilitate the delivery of services to our members with memberships search, online membership resources, management of staff accounts and corporate profiles and events registrations.

The world’s top private equity and venture capital professionals will gather in Hong Kong from 7 - 11 November at the 24th Annual AVCJ HK Forum. Sign up now to secure your place among Private Equity’s elite.
Leading our faculty of the best and brightest in Private Equity are renowned keynote speakers:

• John Connaughton, Managing Director, BAIN CAPITAL
• David Rubenstein, Co-Founder & Managing Director, CARLYLE GROUP
• Christopher Flowers, Chairman and Chief Executive Officer, J. C. FLOWERS & CO. LLC
• Howard Marks, Chairman, OAKTREE CAPITAL MANAGEMENT
• David Bonderman, Founding Partner, TPG CAPITAL

Visit www.avcjforum.com for the latest programme and line-up of confirmed speakers.
Last year’s Forum attracted over 1,000 participants from 33 countries, including more than 250 LPs representing over $3,500 billion in assets under management and more than $550 billion of capital allocated I private equity.

HKVCA is now soliciting the registration of angels who invest in seed and early stage opportunities raising up to HK$5,000,000. Please recommend colleagues, friends and investment partners who may be appropriate as angel investors.