Introduction of New Board of Directors

- Click here to view Board of Directors' full bio
HKVCA Tax Consultation Meeting
On July 25, 2016, the HKVCA held a tax consultation meeting for members at the offices of Ernst & Young. As many as 66 people attended representing private equity and venture capital firms and 58 attendees completed the HKVCA’s tax consultation questionnaire discussing the IRD’s most recent interpretation on the taxation of private equity based on the release of DIPN 51 and revised DIPN 43.
HKVCA Vice Chairman John Levack and Adam Williams, a partner at Ernst & Young, provided the details of the IRD’s practice note stating how the 2015 extension would be interpreted. The advisory members on the Technical Committee made it clear that the practice note leaves substantial areas of uncertainty, and as a practical matter might be unworkable for most private equity firms.
In addition, the IRD has also set out its view on how carried interest should be taxed, an interpretation that makes Hong Kong part of a very small group of jurisdictions that treats carried interest as income for tax purposes.
The HKVCA’s consultation meeting was aimed at ensuring that the full implications of the IRD’s DIPN 51 and revised 43 are understood by member firms. It also provided a platform to help the HKVCA understand the major concerns of member firms and to discuss the ways the HKVCA should respond to the IRD announcements, including:   
  • Lobby with government (through multiple channels, starting as high as possible)
  • Explore whether HKIFA/AIMA/HKVCA can provide a unified message regarding stalled reforms of the ‘fund management sector of HK’
  • Litigation against IRD’s ‘interpretation’. This might involve finding a firm (with a robust carry structure) & HKVCA assisting the firm fight a case against the IRD in the courts
  • Submit an alternative approach (on Extension and particularly on Carried Interest) to IRD
  • Changes to tax treatments should be forward looking – and merit some discussion with professionals
  • Compare treatments of carried across different jurisdictions
  • Run a similar session for Associate Members – informing them and seeking their feedback  
Upcoming Events


Sponsored by    
Speakers:  David Chan, Partner,
Head of Transaction Tax Greater China, EY
Eva Ip, Partner, Head of Private Equity Greater China, EY
Jesse Lv, Partner, Leader of China Tax Outbound Center, EY
Alan Li, Partner, Transaction Advisory Services, EY
Peter Chen, Senior Managing Director, ZZ Capital
Robert Bibow, Managing Director/Partner, Sailing Capital
View speakers' bio here.
Date: 19 September, 2016 (Mon)
Time: 16:00 - 17:30 (followed by cocktail reception)
Venue: EY Office, 22/F CITIC Tower, 1 Tim Mei Avenue,
Central, Hong Kong
Fee*: Full Member (Corporate): one free pass per company
*Note, free pass no shows will be charged full price
Full Member (Additional Pass)/ Associate Member:
HK$200 per person
Non-member: HK$400 per person
CPT: 1.5 point
HKVCA Real Assets Luncheon Talk -The Belt and Road Initiative
Sponsored by
Speakers: Joseph Ferrigno, Managing Partner, AMCG Partners
Julian Vella, Asia Pacific Regional Leader,
Global Infrastructure Practice, KPMG
View speaker's bio here.
8 September, 2016 (Thurs)
12:15 - 14:00
The Harcourt Suite, Hong Kong Club, 
1 Jackson Road, Central, Hong Kong
(Hosted and room reserved by Mr. Joseph Ferrigno)
Full Member (Corporate): one free pass per company
Full Member (Additional Pass)/ Associate Member:
HK$480 per person
Non Member: HK$880 per person
*An additional charge may apply to accommodate special dietary requests
1 point
HKVCA Members Event
Sponsored by   
Date: 7 October, 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.
HKVCA Members Event
HKVCA Consultation Meeting
12 September, 2016 (Mon)
12:00 – 15:00 (sandwiches & drinks provided)
EY, 22/F CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong

For more details, please contact
Alfred Lam at

HKVCA Private Equity Fundamentals Course 2016
*Topics include:
September 21 (Wed)
- Early Stage Investment
September 21 (Wed)
- Module 1: PE Basics
September 23 (Fri)
- Module 2: The Investment Decision
September 30 (Fri)
- Module 3: Transaction Documentation
October 5 (Wed)
- Module 4: Post Investment / ESG
October 7 (Fri)
- Case Study: Pacific Coffee & CVC/ HKBN
November 2 (Wed)
- Module 5: Tax / LP Universe/ Fundraising
(Module 5 sponsored by KPMG)
CPT/ CPD: 3 points per module for early stage investment, module 1, 3, 5 and case study; 4 points for module 2 and 4
*The above information is subject to change until final confirmation.
Group Discount:
Register in a group of 2 or more from the same company and enjoy a 10% discount.

Sponsored by
The event offers an excellent opportunity for networking with fellow professionals and for celebrating the holiday festivities with both colleagues and friends.  We are also honoured to have recently elected HKVCA Vice Chairmen, Chin Chou of Morgan Stanley Asia and 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, beers, fresh orange juice, soft drinks and water (mineral or sparkling)

HKVCA Supporting Events:

AVCJ ESG Forum 2016
9 September 2016   

SuperReturn Asia 2016
26 - 29 September 2016

Foreign Investment Week 2016
27 -29 September 2016    

Australian PETC 2016
7 October 2016   

WT | Wearable Technologies Conference 2016 ASIA
12 October 2016   

Elevator World Tour
13 October 2016   

China M&A Forum 2016
13 October 2016   

South-East Asian Private Equity Conference
14 October 2016 

Sustainable Investing in Emerging Markets Summit
25 October 2016   

The 29th Annual AVCJ Private Equity & Venture Forum
15 - 17 November 2016

Business of IP Asia Forum

1 - 2 December 2016    
InnoDesignTech Expo
1 - 3 December 2016   

EY Entrepreneur Of The Year 2016 China


New Members Welcome

Corporate Full Members          
Manulife Asset Managment

Primavera Capital Group       
Primavera Capital Group is a China-based global investment firm managing both RMB and USD funds for leading institutions, corporations, and families in China and around the world. Primavera Capital Group was founded by Dr. Fred Hu, an economist, investor, and a former partner and Chairman of Greater China at Goldman Sachs Group. The team combines global capital market experience, deep industry knowledge, and a unique network of relationships with policymakers and regulators, as well as leading CEOs and entrepreneurs in the region and globally. Primavera Capital Group employs a flexible investment strategy of growth capital, buyout and control, as well as special situations including restructuring, distressed, and turnarounds.

Vickers Venture Partners
Vickers Venture Partners is an early stage investor with sector focus on life sciences, TMT, financial services and consumer sectors. We are a top quartile venture fund based on Preqin data. The firm has offices in Singapore, Shanghai, Hong Kong and San Diego.     

ZZ Capital International

Overseas Full Member
Adams Street Partners Singapore Pte Ltd

Adams Street Partners is a global private markets investment manager with over $27 billion in assets under management. Founded in 1972, today they invest across the primary, secondary, direct venture growth, private credit and co-investment markets. Adams Street is 100% employee owned and independent, and has been since August 2008.   

Overseas Associate Member 

Monex Europe Limited        

Recent Events Report

HKVCA Luncheon Talk on Crowdfunding
31 August 2016  

A luncheon talk on crowdfunding, featuring speakers from Davis Polk and City University of Hong Kong (CUHK), was held on 31 August 2016 at the China Club. With close to 60 people in attendance, the event proved to be extremely popular with members. James Lin from Davis Polk and Professor David Donald from CUHK discussed the general concepts behind the idea of crowdfunding and recent US Securities and Exchange regulations that have gone into effect regulating how crowdfunding is conducted. The speakers also examined the types of crowdfunding platforms available; its growing popularity among investors; and how crowdfunding for SMEs might work in Hong Kong.  
We would like to thank to our extremely knowledgeable speakers and offer a special thanks to our sponsor, Davis Polk, whose support made this event possible. 

HKVCA LP Luncheon
26 August 2016  

The HKVCA’s LP Committee hosted its latest LP only luncheon on 26 August 2016 at the China Club. Shirley Xie, Partner at PwC, spoke on what she believes are the major issues related to Chinese VC fund valuation in a cooling environment. More specifically, she discussed how an advisor deals with a “stale” previous round valuation that may have taken place more than a year prior; the performance metrics advisors should seek in addition to the last round financial valuation; how an advisor determines when a company’s mark requires a write-down; the greatest area of tension between auditors and venture capital GP’s with respect to 2015 year-end valuations; lagged recognition of write-downs or write-offs on venture funds at year-end 2015; the practicality of implementing “liquidation preference” for deteriorating portfolio companies; the degree of liquidity discount on domestically listed companies; and valuing companies in the process of a back-door listing through a listed shell.
The HKVCA and the LP Committee were especially pleased that nearly 20 LP representatives were able to find time from their busy schedules to attend the lunch and to network with their colleagues. We would like to thank all the participants who helped to make this event a great success. 

HKVCA Luncheon Talk
5 August 2016  

A luncheon talk with speaker from KPMG China and Clifford Chance was held on 5 August 2016 at the China Club. Over 60 attendees had participated this tremendous seminar. The topic of talk was “Brexit: The impact on Asian GPs and LPs”, and the speakers – Mr. Andrew Weir from KPMG China and Mr. Matthias Feldmann from Clifford Chance together with the moderator – Mr. John Levack, Vice Chairman of HKVCA outlined and provided their insight and analysis of the likely short and long-term impact on the private fund industry of Brexit: the impact on investment landscape and portfolio management, in particular for those with UK and European businesses; the impact on fundraising and the tax implications. We would like to express our sincere thanks to our extremely knowledgeable speakers and offer special thanks to our sponsor, KPMG, whose support made the event possible and extremely successful.

21 July 2016  

The HKVCA’s Young Professional Committee held a mixer event on July 21, 2016 at the K-Pocha Bar in Lan Kwai Fong. This popular event, which has always provided attendees with valuable networking opportunities in a fun and social setting, is aimed specifically at our younger members. More than 50 young professionals participated, representing a broad range of sectors from within the private equity and venture capital industries.

HKVCA ESG Luncheon Talk
11 July 2016  

A luncheon talk on the topic of managing ESG from a GP’s perspective was held on 11 July, 2016 at the China Club. Over 50 attendees participated in this successful event. The speakers - Joseph Wan from Cinven HK, Alvin Lam from CVC Capital Partners and Hannah Routh from PwC - addressed the issues of how to define a firm-wide ESG policy and how to incorporate ESG into the actual investment process. This has become all the more important given that institutional investors are increasingly supporting its implementation in the belief it can enhance returns rather than restrict them. We would like to thank our knowledgeable speakers and offer our special thanks to our sponsor, PwC, whose support made this event possible.    

HKVCA Breakfast Meeting
8 July 2016   

The HKVCA’s monthly breakfast meeting was held at the Hong Kong Club on 8 July, 2016. Hosted by our Vice Chairman, John Levack, the event was once 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, FTI Consulting, for making this popular event such a success.    

Industry News

Asia fintech deals near US$10b amid mega funding in China 

25 August 2016  

(SCMP by Bien Perez / Alice Woodhouse) - Massive deals in mainland China have lifted overall financial technology (fintech) investments in Asia-Pacific to a record US$9.623 billion in the past seven months, eclipsing the size of transactions in North America and Europe for the same period.
Total fintech investments in the region had skyrocketed on the back of the US$4.5 billion round of private equity financing by Alibaba Group Holding affiliate Ant Financial Services in April.

View full article here
Kerogen Capital raises $830 mln in second energy fund

26 August 2016

(Reuters by Denny Thomas and Kenneth Maxwell) - Private equity firm Kerogen Capital said on Friday it has secured $830 million in its second energy fund, taking its total assets under management to over $2 billion since inception.
In a statement, Kerogen, with offices in Hong Kong and London, said the fund will invest in international energy sectors outside North America, providing growth capital to upstream oil and gas companies.

View full article here

China's Meitu Eyes A Too-Pricey IPO      
26 August 2016

(Forbes by Yue Wang) -  China’s most popular photo touch-up app maker Meitu’s planned listing might be the next big tech IPO in Asia. However, the Xiamen-based firm will have to do more to convince investors it’s able to turn around its loss-making business model.

View full article here 

KKR Expands Asia Pacific Leadership Team With New Appointments in China, Korea, and Singapore  
29 August 2016  

(Press Release) - KKR today announced that the firm is making important additions to its private equity investment team in Asia, specifically a change in leadership in China and the addition of new senior investment talent in China, Singapore and Korea.
Ming Lu, a Member of KKR and Co-Head of Asia Private Equity, has been named sole Head of Asia Private Equity. KKR Members David Liu, Co-Head of Asia Private Equity and Head of China, and Julian Wolhardt, are leaving KKR at the end of this year to form a new China-focused investment firm. They will transition to KKR Advisors beginning in 2017. Ming Lu will serve as Interim Head of China until the Firm appoints a successor.    

View full article here

KKR Releases its 2015 ESG & Citizenship Report


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