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June Newsletter
15/06/2011
Dear AVCAL Colleague,

Registration for our 2011 conference in September began a couple of weeks ago and we received a large number of delegate registrations in the first few days. We only have a small number of places available before we start the waitlist. The program for the conference continues to be developed, but we've already lined up some exciting speakers including Joncarlo Mark (just recently ex-CalPERS) and Hugh Bradlow, the CTO of Telstra. Here is the latest program.

I was hoping to not mention tax in this issue but life's not like that. AVCAL was involved in a roundtable, held last week by Minister Shorten's advisers, to discuss the implementation of the MIT regime. Participants included Treasury, the ATO, the Tax Institute, the Property Council and several other peak bodies like ourselves. It was a fruitful discussion about issues such as definitions of fixed trusts which were covered in a submission we made last year. AVCAL and the other peak bodies are collaborating to put consistent messages to the Government on these issues.

The UN-backed Principles for Responsible Investment (UNPRI) Initiative has launched a revised PRI guide (see ESG update below). I was asked to speak at the recent Responsible Investment Forum in New York. AVCAL has taken a leadership role in advocating for the development of ESG policies in our industry, and along with our international counterparts was asked for perspectives and developments within our respective memberships. While in New York I took the opportunity to visit a number of our international members.

A new section called Media Watch will now be appearing in our monthly newsletter. It will highlight some of the important stories and memorable quotes relating to our industry over recent weeks.

Finally, a reminder that on 1 July we will be sending out membership renewal emails including a summary of AVCAL's activities in advocacy and research over the past year.



Kind Regards


Katherine
Chief Executive
ESG update

The UNPRI has just released the second edition of the "Responsible investment in private equity - a guide for limited partners". ESG is an important issue globally and there are varying levels of implementation of ESG policies within our industry. The new guide recognises this and contains some very useful information to assist both LPs and GPs adopt an ESG model that best suits their situation. Both the updated guide and other supporting information are available on our website.
Policy and Advocacy

Venture Capital

Innovation Minister Kim Carr last week released the evaluation reports for the IIF program before announcing three VC funds as new IIF recipients. Congratulations to fund managers Southern Cross Venture Partners, the Medical Research Commercialisation Fund, and Carnegie Venture Capital, which each receive $20m via the IIF.

In a media release, AVCAL took the opportunity to highlight the fact that the Minister committed the Government to a "national innovation system" in releasing the evaluations and announcing the new IIF recipients, but has not yet put anything in place to continue support once the IIF concludes possibly later this year.

AVCAL also met last week with representatives of the Australian Centre for Renewable Energy (ACRE) which administers the Renewable Energy VC Fund. We were able to provide input with respect to the current state of the industry and renwed our arguments about what steps the Government could be taking to help boost venture capital in Australia. We discussed the VCLP review and again highlighted concerns around the current uncertainty with the end looming for the very successful IIF program.

Latest Research News

Australian PE & VC benchmark index for Q4 2010 released
Australian private equity and venture capital continued to generate attractive returns over one-, three- and five-year periods as of the year ended December 31, 2010, when compared with the S&P/ASX 300 Index.

AVCAL opens research prizes for 2011
AVCAL is calling for submissions for two research prizes in a bid to promote high-quality and rigorous analysis of the private equity and venture capital industry in Australia.

State of the US Venture Capital Industry
TrueBridge Capital Partners, a US-based alternative asset investment firm, has released a report documenting the state of venture capital industry in the US. The report covers four main areas of the US VC industry - fund raising, investments, valuations and exits.

Coller Institute: Private Equity Findings (Spring 2011)
The latest edition of the Coller Institute's "Private Equity Findings" which synthesises leading academic research in PE.

Media Watch

These are links to interesting stories you may not have seen and a list of "quotable" quotes.

Germany's venture capital market starts to take off
Deutsche Welle

Venture capital 'gap' between US and UK closes
Telegraph.co.uk

The rise of the start-up accelerators
StartupSmart.com

Private equity's SME trail
SmartCompany.com.au

The core concern for private equity
Telegraph.co.uk

Private equity takes on taxman
The Australian

Why the world wants Australian tech companies
SmartCompany.com.au

"Europe will risk 'a further relative decline in the world' if it does not remove barriers that prevent foreign groups from investing on the continent, the new head of Europe's private equity lobby has warned."
Financial Times (this is a subscription site, which can be registered for free)

"If our governments really cared about keeping new companies here, they would make sure the incentives and tax rules compared favourably with the best in the world. They don't."
Kath Walters, BRW (no link available)

"Concerns on Australia's taxation of private equity profits, which now attract a higher rate of interest after the government upheld a tax office ruling, and a sluggish consumer sector are also making Australia less attractive to foreign investors."
Victoria Thieberger, Reuters

"Unfortunately there has been no indication of on-going support once the IIF program concludes this year."
Katherine Woodthorpe, AVCAL

"Australia's private equity industry body, AVCAL, said on Friday it was surprised that the Australian government has decided to uphold a tax office ruling that gains from asset sales by buyout firms should be taxed at a higher rate."
Victoria Thieberger, Reuters

Send us your news!
With deal and fundraising activity picking up, we're keen to ensure our readers can stay up to date with the latest developments on this front. If you are a GP, do send us your news releases on your latest activities, or success stories, and we will be happy to post them up on our website and in future newsletters.
AVCAL Awards now open

Nominations for the 2011 Awards are now open. A panel of industry experts will assess nominations from AVCAL Members across two award categories: portfolio company awards and the excellence in investor reporting award. The categories for the portfolio company awards are investments in early stage, expansion stage, small buy-out, medium buy-out and large buy-out. Go to the AVCAL website for more information.

AVCAL Professional Development for 2011

PE101
Proudly Partnered by Credit Suisse
Sydney - 17 June 2011.
Sold out
AVCAL Networking for 2011

United Malt Holding Case studies
Proudly Partnered by Mallesons Stephen Jaques
Sydney - 20 July 2011. Register now
Brisbane - 11 August 2011. Register now

Peplin Case Study Series
Proudly Partnered by Corrs Chambers Westgarth
Melbourne - 22 July 2011. Register now

Mark your diary
AVCAL Conference 2011, Gold Coast
Golf 20 September
Conference 21-22 September.
More information here
Other Events and Offers

PEI Media book launch
The Guide to Responsible Investment provides practical ESG guidance from over 25 industry experts. AVCAL members receive 15% off, quote AVRI15 to redeem.
Financial Review DealBook Conference 22 June 2011
Financial Review conferences will offer a 10% discount to all AVCAL members wishing to attend the conference.

The third annual Tech23 23 August 2011, Sydney
Tech23 2011 is a competition for young, innovative and fast-growing Australian companies. 23 of Australia's best will be given a five-minute timeslot to show off their business model to an audience of 400+ potential investors, mentors, entrepreneurs and customers.

The Mining Investment & Finance Fundamentals
This conference provides a critical in-depth review on maximising mining sector investment returns.
SYDNEY, May 31st - June 2nd 2011. 10% discount for AVCAL members.

Creative Innovation 2011
World changing innovators, futurists, inspired thinkers and curious souls gathered together in an interactive community. It's a place to learn techniques and strategies, unlock and share ideas. A place to imagine the future.

Preqin Special Offer for AVCAL Members
Preqin is offering AVCAL members the chance to subscribe to their services at a discounted rate. First-time subscribers will receive a USD 250 discount on any product or publication worth USD 1000 or more.

Capital IQ Special Offer for AVCAL Members
Capital IQ is currently offering AVCAL members a 2 month free trial for new subscribers.

mergermarket Special Offer for AVCAL Members
mergermarket is offering a free trial to AVCAL members and an additional free 2 month access for any subsequent NEW subscribers to the service (14 months for the price of 12).




RESEARCH PARTNERS

Ernst & Young

Pacific Strategy Partners


AVCAL 2011 PARTNERS

Castle Harlan

Advent

Gallagher

NAVIS

AON

KKR

Ironbridge

CATALYST

Archer Capital

TEST CBA 3

BOS International

Champ Private Equity

Quadrant

INVESTEC

KPMG

Intralinks

Riverside Company

Pacific Road Capital Management

Propel Investments

Credit Suisse

Pacific Equity Partners

LEK

Norton Rose

NBC Capital

Westpac

ROTHSCHILD

McGrathNicol


DATA VENDOR

Capital IQ

Disclaimer:

AVCAL is the professionally managed industry body that promotes the Australian private equity & venture capital industry.

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