| Dear AVCAL Colleague,|
AVCAL launched the
Code of Private Equity Governance last week at an event attended by
Assistant Treasurer and Minisiter for Financial Services and
Superannuation Bill Shorten.
The Minister commended our
industry for not just producing and publishing the code, but for its
broader role in the national economy. "The Government believes
private equity is a key driver of the economy ... and we welcome its
important contribution to productivity, innovation and growth," he
The launch concluded with a discussion about the
broader role of the governance code, which will be an evolving guide
that can adapt to and reflect changing circumstances and industry
practices. AVCAL is indebted to Blake Dawson, especially David
McManus, Carly White and Elizabeth Johnstone for their substantial
work on the code and for hosting the launch.
As part of
AVCAL's strategy to generate a better understanding of our industry,
we are hosting an 'Introduction to private equity and venture
capital' seminar on 3 November in Canberra to be hosted by
Mallesons. We have over 20 representatives from Treasury, the
Department of Innovation, Industry and Science and the Department of
Resources, Energy and Tourism attending.
The AVCAL Council
has endorsed an enhanced professional development program, which is
currently being developed, to commence in 2012. The new program
groups the content of our courses into three categories:
introductory, focus and masterclass. One of the new masterclass
level programs will be a deal simulation exercise"PE - doing the
deal" to give industry participants a deeper level of understanding
of the mechanics of a deal using a real case study.
just completed membership renewals for the year. I would like to
express gratitude to our Members for their on-going support. AVCAL
achieves a lot as a small industry organisation and this was evident
recently when a senior US-based fund head applauded AVCAL for our
"best of breed" research.
Next week is conference week and I
look forward to seeing many of you there. Delegates will receive a
final update tomorrow. For those of you who need to contact us next
week, please bear with us as we might be a bit slow in responding to
AVCAL Conference 2011, Gold Coast
September, still places available.
Conference 21-22 September.
More information here
networking and professional development
Formal registration for the following
events will open after conference, but please register your interest
and mark in your diaries in the meantime.
tax briefing breakfast
PwC, with AVCAL support,
invites you to an interactive briefing on key aspects of the newly
passed R&D legislation that impacts investments by venture
capital and private equity firms.
Topics covered will include
strategies you should consider to obtain the optimal level of cash
rebates, due diligence considerations for new investments, the
impact of "control tests" on the structuring of future investments,
and potential for benefits from collaboration with universities and
other research based organisations.
Date: 5 October
Time: 7.15 am - 9.00 am
201 Sussex Street
Darling Park, Sydney
and D Tax briefing RSVP
Phone: 02 8266 0479
The ATO released on 17 August TD
2011/21: Income tax - does it follow merely from the fact that an
investment has been made by a trustee that any gain or loss from the
investment will be on capital account? This is different from last
year's TD2010/21. It provides examples that are meant to help
investors and says the answer to the question is no. "The mere fact
that a gain or loss from an investment is made by an entity in its
capacity as trustee of a trust is not conclusive as to whether the
gain or loss is on revenue or capital account for tax purposes." More
logic of funds flow
After languishing since the global
financial crisis, a revitalised private equity sector has recently
begun putting smiles on the faces of investors, fund managers, and
consultants alike, according to a just-released global report.
Succesful exits are growing, existing funds are being deployed, new
funds are being raised, and investor allocations to private equity
are inching upward. More
Capital fund named a world top performer
launched by Australia's Anacacia Capital has been named the top
performing fund globally by Pensions and Investments magazine.
Anacacia Partnership I, which closed in 2007, was judged to be the
outstanding performer out of funds raised between 2006 and 2008,
based on data collected by Preqin. More
VC deals in the news
Two recent deals have been in the
news. One concerns three VC funds - led by OneVentures, with
co-investors Brandon Capital, the Medical Research Commercialisation
Fund (MRCF) - injecting $15m into Australia's newest biotechnology
start-up, Vaxxas and its needle-free vaccine delivery system,
Nanopatch. The other concerns the divestment by Starfish Ventures of
Energy Response, an energy management solutions company. More
private equity and venture capital continue to outperform public
Continuing the trend seen over the last three
quarters, the Cambridge Associates LLC Australia Private Equity and
Venture Capital Index outperformed the S&P/ASX 300 Index over
the one-, three- and five-year horizons as of the quarter ended
March 31, 2011, with annualized returns of 7.7%, 1.5% and 4.8%
venture capital funds invest in drug development company
Spinifex Pharmaceuticals, an Australian pain
drug development company, has secured a further A$6.25m of venture
capital investment from GBS Venture Partners Limited, Brandon
Capital Partners Pty Limited, Symbiosis and Uniseed, adding to the
previous A$12m raised from the same syndicate in the first part of
its Series B round. More
PE outperformed in most years
The University of
Chicago professor and noted private equity performance expert,
Steven Kaplan, says forthcoming research will likely bolster
evidence that the private equity asset class has beaten the public
markets "for a long period of time". Private equity as on average
has likely "outperformed the public markets, net of fees, in most
years and for a long period of time." More
M&A Solutions appointment
Aon has appointed
mergers and acquisitions (M&A) insurance specialist Jennifer
Richards to lead the Transaction Liability division of the Aon
M&A Solutions team. She will assume the role of Regional
Director Transactional Liability. firstname.lastname@example.org
This week the ATO and AusIndustry
released guidance on the new R&D tax incentive. AusIndustry has
produced an R&D Tax Incentive Overview, FAQs and Fact Sheets
among other material. More
On the expenditure side, you can now
refer to the ATO R&D Tax Incentive webpage which includes a
series of brief discussions on eligibility, registration, claiming
and compliance and monitoring. More
Watch George Roberts at the Private
Equity International's PRI Forum. The KKR co-founder discusses KKR's
green portfolio programme and approach to ESG issues at PEI's recent
Responsible Investment Forum in New York. To view the full video,
you need to register for free to
www.privateequityinternational.com, and then simply click here.
us your news!
We're keen to ensure our readers can
stay up to date with the latest developments. If you are a GP, send
us news on your latest activities and achievements.
"As a growing and dynamic part of Australia's
financial services industry, I am keen to see private equity
continue to improve Australia's overall productivity and strengthen
Australia as a financial services centre," said Assistant Treasurer
"The level of professionalism in
Australian superannuation is very high and there is a real interest
in ESG [environmental, social and corporate governance] issues,"
said David Brown, AVCAL Council member and former VFMC head of
private equity, in an interview about the new governance
Australian Financial Review
"A new code of
governance for the venture capital industry should inspire more
confidence among investors keen to put their money into promising
"Private equity has a bad name and
many may decry the recent $1.2 billion deal done by private equity
company Archer Capital, which sold out its stake in accounting
software company MYOB and more than doubled its money. I'm not one.
This is private equity at its best," wrote journalist Kath
"It's a shame that short term
regulatory issues around superannuation are restraining long-term
investment decisions, which will ultimately bear on returns for
super funds in the long-term," says Joseph Skrzynski CHAMP Private
Equity Founding Partner. "Australian super funds are out of step
with their peers overseas with this part of their asset allocation
to long-term investments."
Investment and Technology
"Australia's private equities
continue to outperform public"
Asian Venture Capital
Events and Offers|
AVCJ HK Forum
Some of 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. For more
information visit www.avcjforum.com, email mailto:Anil.Nathani@incisivemedia.com?subject=Query
from AVCAL newsletter or telephone Anil Nathani on + 852 3411
NZVCA 2011 Annual Conference - 27 October
The annual private capital event is where you can catch up
with industry leaders and the latest trends in private equity and
venture capital in NZ. A one-day conference with plenary and
break-out sessions, including conference cocktails and
AsiaD: All Things Digital
AsiaD: All Things
Digital, a Wall Street Journal Executive Conference, will be held in
Hong Kong on October 19-21. AVCAL members will enjoy a special rate
to attend - valid until 23rd September. Please email mailto:email@example.com?subject=AsiaD
query from AVCAL newsletter to find out more.
Australia US Investor Conference
Capital will host an inaugural annual Investor Conference on 12
January 2012 in Los Angeles. More than 150 investors and 50
Australian presenting companies will be in attendance.
PE Asia special offer
PE Asia is currently
offering AVCAL members a 20% discount for new subscribers.
Please email PE Asia for more information about this offer.
Ensure you quote AVCAL11 to receive this discount.
|Creative Innovation 2011 conference - 16-18
Creative Innovation 2011 is a rare opportunity to
learn, think, connect and share ideas with over 35 of the world's
most influential thinkers under one roof. Inspire your leadership
and achieve business success at the conference from 16-18 November
at the Sofitel Melbourne On Collins.
Preqin special offer
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
Capital IQ is
currently offering AVCAL members a 2 month free trial for new
Guide to Responsible Investment discount
Media's Guide to Responsible Investment provides practical ESG
guidance from over 25 industry experts. AVCAL members receive 15%
off, quote AVRI15 to redeem.