YEAR 2007-2008 IN REVIEW

Chairman Johnny Chan

The PE market continued to flourish during the past year. The international center stage is moving towards Asia.With the potential deceleration in the West, coupled with rising consumption levels and burgeoning middle class, booming domestic markets, investors are actively looking East for growth and returns. The shift of economic activities and growing wealth in Asia has induced record fund raising and the many new players into the PE markets in Asia.

The industry has grown strongly many folds over the past 2 decades. The pool of funds invested into a range of companies has been crystallized into distinct segments of Venture Capital, Private Equity, Buyout and now Mezzanine, Hedge Funds with various focuses as Real Estate, Infrastructure. The recent advent of the entry of Governments Sovereign wealth funds has added an important new dimension and is very significant in increasing the prominence of the PE asset class in Asia.

Today PE assets under management in Hong Kong stands at almost US$190 billion*. HKVCA has played an important part in this process in promoting a strong role of PE in HK and Asia as a whole. The association celebrates its 20th year in 2007-08 in its work of educating the public in understanding the value of PE and its importance in the building businesses and the economies, in providing a networking platform for practitioners and service providers for the exchange of information and experiences, and in presenting the industry as a united front on common issues.

The year 2007-08 is a milestone year and the busiest one for the Association. In addition to the many activities on external front and membership services, the highlight of the year was the 20th Anniversary dinner. The list of activities and events has been handed out to members today. To summarize,

*(AVCJ Sources)

External Relations
During the past year, the Association collaborated on a total of 36 events with many different trade and business bodies to promote private equity to the business community. Our Co-President Mr. KO Chia and Mr. Vincent Chan were particularly active during the year in representing the Association as speakers and panelists. Others who took speaking roles at various events were Conrad Tsang, SC Mak and Simon Mak.

Committee Members:
Johnny Chan, Jamie Paton, Varun Bery, Vincent Chan, Josephine Price, Gordon Clancy, K.O. Chia, Peter Lee

20th Anniversary Gala Dinner
The Gala Dinner that was held at the Four Seasons was attended by 320 members and guests. It was very fitting celebration of 20 years of service to the industry.

The evening was heralded by a spirited HKVCA song sung by 17 past Chairmen and current Executive Committee members, setting the mood for a lively and fun evening.

Victor Fung, Founding Chairman recounted history of how the Association begun and the evolution of the industry.

The highlight was a talk by Mr. Hank Greenberg, Chairman and CEO of C.V.Starr & Co Inc, the business titan in US and around the globe, a leader in US-China relations. He is held in high regard for his vision and acumen in building the largest global insurer. Mr. Greenberg provided interesting observations and perspective on private equity, globalization and the place of China.

With the success of the industry over the past 20 years, it was time for some 'giving back' to the community. Auctions of 7 contemporary Chinese paintings from Alisan Fine Arts including a lithograph from Zao Wou Ki were sold. Sporting memorabilia which included a Rolling Stone signed guitar were also popular. The auction raised more than $250,000 for the Chinese University Students Exchange Program and Chi Heng Foundation for orphans of AIDs victims in China.

Organizing Committee:
Johnny Chan, Vincent Chan, Jamie Paton, John Levack, Ming Ho, Max Burger, Miranda Tang, Peter Lee, Vincent Fan

PRC Committee
China remains the dominant market. The speed with which the market changes and develops makes is critical for private equity managers to keep constantly abreast of changes in business and operating areas, rules and regulations and practical issues in investments in the China market.

China Private Equity Summit
The Summit is our key annual event. From the first Summit in 2002 with less than 100 participants, it has since become an Annual event with ever increasing participation. This year marked its highest attendance of 245 comprising venture capital, private equity, buyout practitioners, professionals from banking, legal, accounting industries, business corporates and entrepreneurs.

The Summit maintains its reputation as an essential source of information where practitioners and service providers congregate to exchange the latest developments in China and updates on the regulatory and operational issues of the vast and changing China market. The Summit is unique in that it is organized by the practitioners themselves who have come together to share their invaluable experiences and insights in dealing with the increasing complexities of the market.

The topics covered represents the latest trends - Funds moving Onshore, comparisons of Offshore/ Onshore structures, regulatory and tax implications, the role of foreign VCs in local RMB funds. In addition, expert speakers examined the China A shares market, listing opportunities, the China leverage market, banks complementing PE investors, success factors in portfolio companies management.

The audience took away a great deal in cutting edge information and their feedback was excellent.

Committee Members:
Johannes Schoeter, Conrad Tsang, S. C. Mak, Vincent Chan, Adrian Lam, Philip Zhai, Gordon Lam

PRC Events
The China Committee with its 7 members led and participated in 28 conferences, forums and events in Hong Kong and China to build linkages through different channels and platforms to generate dealflow for members firms. Speakers and members who represented the Association at following events are Conrad Tsang. S.C. Mak, Robert Xie, Philip Zhai, Timothy Shen.

SME Committee
The Committee continued its work in bridging the gap with SME and local corporations and industrials, in actively pursue their programs on "Anchor", "Enabling" and "Education".

This is the third year HKVCA acted as Co-Organizer of the Cyberport Venture Capital Forum. The theme is on "Corporate Social Responsibility Building Creative Businesses that Do Well and Do Good".

The "Mixer" event, introduced the year before has become highly popular. It is an excellent format for networking bringing together the fund managers, portfolio companies, businesses and entrepreneurs, service providers in a casual environment. The Mixer in January was held at the American Club, sponsored by the Tianjin Metro, attracted a crowd of 100.

Committee Member:
Patrick Lim, Simon Mak, Marvin Lai, Roger Marshall, Jessica Jook, Jeffrey Cheung, Colin Sau, Chennie Wang

Social Committee
Golf Day
HKVCPEA held its Fifth Golf Day on March 13 at the Eden Course at Hong Kong Golf Club in collaboration with the industry's service providers - Ernest and Young, Morrison Forrester and HSBC Trust Services.
60 players had a highly enjoyable day in perfect weather to network and reinforce relationships. The event, with its large 'goodies' bag and prizes has become a much look forward event in members' calendar.

Committee Member:
Varun Bery, Stephen King, Vincent Fan, Peter Lee

Wine Tasting
The “Wine Tasting” gets better each year. This year AIMA joined us in organizing the event.

Always interesting and fun, Simon tam the renowned wine expert in Hong Kong walked through 6 top notch champagnes. The participants very enjoyed the generous tasting of Moet & Chandon Brut Imperial, Moet & Chandon Rose Imperial, Moet & Chandon Grand Vintage 2000, Veuve Clicquot Yellow Label, Veuve Clicquot Vintage 1999, Ruinart Blanc de Blanc, Dom Perignon Vintage 1999, Krug Grande Cuvee, learning to differentiate between their different qualities and tastes. It was an excellent introduction to beginners and sharpened the taste buds of the discerning.

With participation of AIMA, it was a good opportunity for members for the two Associations to meet.

Special thanks to Monica Tsui and Marcus Thompson who had organized the event for the fourth year.

Special Projects
Performance Return
The Association is continuing its efforts to obtain accurate industry performance data. Despite conscientious efforts of the committee to ensure accuracy and protections of confidentiality of data, they are frustrated by the lack of response from members. As the data is important part of fund raising and ensuring transparency and accurate data, it is hoped that members would cooperate in completing the returns to Thompson Financial which is an independent collater of data and information. 

Committee Members:
Monica Tsui, Marcus Thompson, Jamie Paton, Collin Lau

It is timely for the Association to lay out its Roadmap as it begins a new phase in its 20th year with greater involvement and participation from its members.

The Association undertook a Roadmap survey to determine the needs of members and to map out its future direction. Based on response so far, members are calling for the Association promote and influence policies governing the industry. As PE does not have political representation, it needs a collective voice to represents its interests. To be effective in this respect, we urge all market participants to provide us with feedback and input as this is critical in developing research and data to support policies that affect the industry. Another priority for members is in seeking support in accessing China. Furthermore education and training to regularly upgrade the skills and knowledge of members on deals, challenges and solutions are also deemed to be important. As the market grows with many entrants into the sector, we will work to developing more programs to ensure that market knowledge is quickly disseminated to members.

The Association is most fortunate to have benefited from the tireless support and commitment of its tireless effort of our presidents, executive committee and subcommittee members over the years, without which we would not be here today. We express heartfelt thank to our committee members for the significant contribution they have made to the community. Despite their busy schedules and frequent travel, they have taken their responsibilities in leading the association in a serious manner.

Please click here to see a List of Activities in Year 2007-2008


Adept-In Technologies Ltd
Nature of Business: Design and manufacturing of thermal product
Funds Required: USD 1-2 mil
Project Details: Adept-In, as a newly set up company to provide integrated thermal solution from design to product delivery, is developer and manufacturer of critical component, e.g. Vapor chamber (VC). Vapor chamber is the next generation of critical component applying on thermal product. Adept-In is to commercialize the component cost-effective and productive and adopt it into our cooler. Our focuses mainly concentrate on applying new developed material and cheaper bonding processes to replace the long cycle time, hi-energy cost, and lo-yield rate on traditional sintering and diffusion bonding methods. The target market will be CPU and GPU manufacturers like Intel, AMD-ATI and NVIDIA. Vapor chamber is the unique new generation of high performance component to be expected for mass production. Massive and steady VC supply provides the global market players a strong support for further products development and marketing purposes. VC now is seller market.
Contact Details: Mr. Philip Au
Tel: (852) 9841 9593
Fax: (852) 2422 1287
New Members Welcome
Full Member

Barclays Bank PLC
Mr. Hu Ian Jin
Mr. Jean-Pierre Le Roux

Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs 135,000 people.


Paul Capital Advisors Hong Kong Ltd
Mr. Lucian Wu
Mr. Jason Sambanju

Founded in 1991, Paul Capital Partners is not only an established member of the global private equity community, but is recognized as an industry innovator. They combine extensive private equity investment experience with substantial capital to offer creative and timely solutions for investors seeking fair value and predictable liquidity. Their three distinct areas of investment are Healthcare Royalty and Revenue Interests, Private Equity Secondaries and Top Tier Venture Funds.


New Members Welcome
Associate Member

Amicorp Fund Services Asia Pte. Ltd
Mr. Craig Murphy
Mr. Edward Yum

The Amicorp Group is a financial services company specialized in provided corporate and trust management services; private wealth and estate planning; corporate, asset and project finance structuring; and business process outsourcing services. They deliver responsive administrative, legal, corporate and fiduciary structuring services to a broad range of corporate and individual clients.


Dewey & LeBoeuf
Mr. Stephen Wozencroft
Mr. Paul Chen

Dewey & LeBoeuf's Hong Kong office is the newest part of their burgeoning China practice. The office is staffed by a dedicated team of lawyers practicing English, Hong Kong and US law and focuses on corporate an finance, energy, insurance and dispute resolution. Many of their lawyers are qualified in two or more jurisdictions, enabling them to provide clients with seamless, multi-jurisdictional advice from one location in a single time zone.


Lockton Companies (Hong Kong) Ltd
Mr. Iain Finch
Mr. Greg McCoy

Lockton's Private Equity & Corporate Acquisitions Practice is a dedicated team providing risk and insurance advice to those involved in M&A activity. Lockton is independent and privately owned global insurance broker with 3700 employees in 49 offices located in 11 countries. Their core services include risk and insurance due diligence, insurance programme placement and service, private equity portfolio stewardship and private equity professional liability.


Mourant Fund Services (Hong Kong) Ltd
Mr. Tim Mann
Ms. Alice Chan

Mourant is an award-winning, multi-disciplinary, international professional services group, specializing in fund and corporate administration, offshore law and private wealth services. The Group has offices in Cayman, Dubai, Dublin, Guernsey, Hong Kong, Jersey, London, Luxembourg, New York, San Francisco and Singapore. Mourant is made up of three complementary divisions: Mourant International Finance Administration, Mourant du Feu & Jeune and Mourant Private Wealth.


Marketing Financial Services & Investment Solutions to High Net Worth Individuals
Date: July 24 - 25, 2008
Place: The Excelsior, Causeway Bay, Hong Kong
Organizer: Pacific Conferences Pte Ltd

Attend this workshop to learn HOW TO -
Source for client relationship managers – getting the right talent
Build the client service model and client service team
Create the right frameworks and rewards that will motivate and retain key staff
Develop the talent – getting the right balance between sales, technical and compliance training
Identify and source for affluent and HNW clients
Overcome the firm's "stove pipe" organisational structure: How to marshal firm – wide support that recognises and rewards cross selling and up-selling
Implement fee models that balance requirements for immediate revenue with longer term using customer lifetime value analysis
Develop and maintain a competitive advantage
Seize opportunities in Islamic Finance and Investment

For more details or registration, please go to this link -> . HKVCPEA members can enjoy 10% discount on registration

For queries, please contact Lorraine Tiang at
Tel: (65) 6372 2201 or

Seminar on "Building a vibrant Islamic Finance in Hong Kong"
Date: 7 July 2008 (Monday)
Time: 2:00 pm – 5:30 pm
Place: 7/F Conrad Hotel, Pacific Place, Hong Kong
Organizer: British Consulate-General

The City of London, UK Trade & Investment and the British Consulate-General in Hong Kong host a seminar looking at the role of London in the global Islamic funding sector, to support HK's initiative in building an Islamic finance market infrastructure.

For more information or to register, please contact British Consulate-General HK at Tel: (852) 2901 3182 or email



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