Dear AVCAL Colleague,

The round of social functions is well underway and Christmas is on the horizon. I've just completed my first year at AVCAL and what a year 2007 has proved to be on several different fronts.

On the buyout side we've experienced intense scrutiny from the media in the early part of the year followed by a Senate inquiry which pre-occupied us for several months. The outcome of the Senate inquiry was very favourable to the industry, with an acknowledgment of the positive role that private equity plays in the Australian economy and a conclusion that no additional regulation is appropriate or necessary. Nevertheless, it should not be thought that such a finding was a fait accompli and AVCAL worked very strategically to ensure that Senators, regulators, media and other influencers understood the industry and the benefits it brings.

On the Venture side we have had a strong year of raisings. After a quiet period for raisings, this increased activity is welcome and a positive sign of the underlying health of the venture capital market. There were also four new Innovation Investment Fund (IIF) licences granted this year with $20m grants to each, further increasing the size and scope of the industry. In addition the ESVCLP legislation was passed at Federal level. The States need to amend local partnership laws to accommodate it but that is underway with NSW being the first to complete and pass the necessary amendments. The first fund using an ESVCLP is currently fund-raising.

The AVCAL Council has determined that we shall focus on Innovation as our theme for 2008. We have a new government in place which has innovation as an underlying theme also, so I shall look forward to a productive collaboration with them.

The 2008 calendar is shaping up with a number of events already open for registration. We are expanding our training schedule with an additional advanced course in PE to add to the popular and successful Foundation Course in PE and VC. We will run an extra golf day - this time in Melbourne. And the usual series of networking events will happen around the country. We are also running the Melbourne International Venture Capital Conference in January in conjunction with the Victorian Government and I'd like to strongly encourage your attendance.

So, from the AVCAL team, Happy Christmas and Holidays to you all, I hope 2008 is a safe, happy and prosperous one for you and your families





AVCAL Events

Melbourne International Venture Capital Conference

Theme: Cross Border Venture Investment - Global Growth Story
Date: Wednesday, 30th January, 2008
Venue: Ballroom, Sofitel Melbourne, 25 Collins Street,
Melbourne, VIC, 3000
Time: 8:00am - 7:00pm
Host: The Victorian Government
Cost: $825.00 incl. GST Early Bird (prior to 14th December),
$900 incl. GST Standard (after 15th December)
REGISTER


Advanced Training Course in Private Equity

Date: 18 & 19th March, 2008
Time: 8.30am to 9.00pm (Day 1), 8.30am to 1.00pm (Day 2)
Presenter: Michael Dance
Venue: Park Hyatt Sydney, 7 Hickson Road, The Rocks, Sydney
Cost: $3,025 incl. GST - Members only
REGISTER


Foundation Course in PE & VC

Date: 26 & 27 March 2008
Time: 7.30am to 9.00pm (Day 1), 7.30am to 5.30pm (Day 2)
Presenters: Various Industry Practitioners
Venue: Park Hyatt Sydney, 7 Hickson Road, The Rocks, Sydney
Cost: $3250 incl. GST - Members only
REGISTER





Welcome new Members

Private Equity Firms
- Arowana Capital Pty Ltd

National Corporate
- Middletons Lawyers

Organisation
- JANA Investment Advisers
- Shed Enterprises
- Touchstone Consulting

Regional Corporate
- Australian Executor Trustees Limited
- Cambridge Associates
- Charter Pacific Capital Limited
- DLA Phillips Fox NSW
- Ernst & Young NZ
- Glass Expansion Pty Ltd
- HiFX
- ING Bank N.V.
- Lazard Pty Ltd
- Lend Lease Ventures
- McCullough Robertson
- McMahon Clarke Legal
- Mills Oakley Lawyers
- MVision Private Equity Advisers
- Norton Gledhill
- Part Time Professionals Pty Ltd
- Pharmabank
- Societe Generale
- Wilson HTM
- Wood Appleton Oliver (Australia) Pty Ltd

Institutional Investor
- CIT
- Morgan Stanley Investment Management
- Natixis Australia Pty Ltd

Angel
- Smarter Capital





Yours sincerely,


Katherine Woodthorpe
Chief Executive