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November Newsletter
16/11/2011
Dear AVCAL Colleague,

AVCAL has just released the 2011 Yearbook. This yearly publication of Australian PE and VC fundraising, investment and divestment activities, the Yearbook is the definitive annual report for our industry. It shows that for FY2011, the industry as a whole has performed well, with PE and VC exit activity gaining momentum. Thanks to our Research Partner Ernst & Young for their continuing support with Yearbook.

Earlier this month we held a special seminar, 'Introduction to private equity and venture capital', for Government agency officers, mostly from Treasury and DIISR. We gave presentations designed to improve their understanding of the industry. Excellent case studies were also presented by KKR and Starfish Ventures, followed by a panel discussion. Participants reported that the seminar was valuable.

AVCAL Council elections closed 4 November. The results will be reported at the AVCAL AGM on 24 November, when we look forward to welcoming a number of new members to the Council. I look forward to seeing many of you at our end of year events (see below for details).

AVCAL will shortly be publishing its 2011 highlights report, which will look at the key achievements and activities for the year, including those of the various working groups and committees that support Council.

Kind Regards


Katherine Woodthorpe
Chief Executive
Events

Master Class - Doing the PE Deal
***LIMITED PLACES***
Sydney
Held over two half-days
6 Dec (11am-5pm and networking dinner)
7 Dec (9am-networking lunch)
For fund managers only
Register now

Queensland End of Year Event
Partnered by Deloitte
Includes Viking Rentals case study and drinks
Brisbane 30 Nov 5-7pm
Register now

AVCAL AGM
Partnered by KPMG
Sydney 24 Nov 5-5.30pm
Register now

NSW End of Year Function
Partnered by KPMG
Sydney 24 Nov 5.30-7.30pm
Sold out - register for wait list

VIC End of Year Function
Partnered by Credit Suisse
8 Dec 5-7pm
Includes a case study presentation by Advent Private Capital on their Securepay investment.
Register now

For your diary - AVCAL Golf Day, 31 May 2012
Concord Golf Course, NSW

For your diary - AVCAL 2012 Conference, 19 and 20 September next year
Research News

AVCAL/Cambridge Associates PE and VC Benchmark Index Q2 2011
Australian private equity and venture capital continued to outperform the S&P/ASX 300 Index and other key asset benchmarks over multiple time horizons for the quarter ended 30 June 2011.
Report
Media release

AVCAL 2011 Yearbook
The AVCAL 2011 Yearbook, produced in partnership with Ernst & Young, provides an overview of PE and VC fundraising, investment and divestment activity in FY2011.
Yearbook
Data file
Media release

AVCAL Research Prizes
Submissions are invited from academia and industry participants for the 2011 AVCAL Research Prizes for best PE and VC papers. This program is aimed at encouraging the development of high-quality research on issues of importance to the PE and VC industry in Australia. Entries close at 5pm (EST) on Friday 9 December 2011 and will be judged by a panel selected by AVCAL.
More

VICO Project releases VC study paper
The VICO Project has released a report studying the impact of venture capital (VC) financing on the innovation rate, employment creation, growth, and competitiveness of high-tech entrepreneurial ventures in Europe.
More

New AVCAL Members

Welcome to the following new AVCAL member.
Bluegum Ventures - Small Corporate


Industry Resources

AVCAL has available on its website numerous resources for members. Examples include the Trust Deed template, VCLP Resources, and Anti-Money Laundering Templates. Visit the Industry Tools section of the AVCAL website to download the various tools.

Industry News

PE best performer for VFMC
Latest data just released by VFMC shows PE has outperformed every other asset class over the latest quarter, one-year, two-year and five-year periods. Over the same periods, it has beaten its S&P/ASX300 Accumulation benchmark by 19%, 33.7%, 27% and 7% respectively. VFMC reported it lost $1.3 billion due to equity fluctuations over the third quarter.
VFMC data

Letter to the Editor - Sydney Morning Herald
AVCAL submitted a letter to the SMH on Friday 4 Nov in response to some outlandish claims by a writer, who did not seek to test their opinion with industry practitioners.
More

AVCAL congratulates Archer Capital on awards
Australian private equity firm Archer Capital has taken out two coveted awards at the 24th Asian Venture Capital Journal (AVCJ) Forum in Hong Kong last week.
More

AFR roundtable interview - 'The private equity ideal'
The Australian Financial Review's Dealbook team hosted a roundtable Q&A interview with private equity fund managers to discuss the industry, trends and issues.
More

Future Fund continues to increase PE holding
The Future Fund has further increased its allocation to PE while reducing exposure to volatile assets, according to its latest portfolio allocation statement.
More

APRA discussion paper on illiquid super investments
This paper examines the pattern of investment by Australian defined-contribution superannuation funds in illiquid assets. Not-for-profit funds allocate more of their portfolios to illiquid assets, on average, than retail funds ... (and) experience higher risk-adjusted returns, which suggests they capture a return premium for investing in these assets.
APRA discussion paper

Yuuwa Capital invest into app developer
Filter Squad, the Perth-based developer behind the popular Discovr app, has secured a $1.1 million investment from WA VC Yuuwa Capital.
More
Send 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.

Media Watch

'Private equity and venture capital fund managers have invested record highs in Australian companies in the past three years according to the Australian Private Equity and Venture Capital Association.'
Financial Standard
More

"The Australian Prudential Regulation Authority's finding that higher levels of illiquid assets deliver higher returns is timely," wrote Chanticleer's Tony Boyd last week.
AFR

GBS Venture Partners' Joshua Funder talks to ABC Radio Australia's Desley Blanch in an interview about Australia's venture capital industry's challenges, successes and prospects for the future.
More

"Private Equity Profit Driven By Earnings Growth, Not Leverage, report"
Wall Street Journal headline
Download the research report

"David Rubenstein, co-founder of US buyout giant The Carlyle Group, gives 10 basic tips for a successful fundraising."
efinancialnews
More
Other Events and Member Offers

Australia US Investor Conference
Cappello 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.

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 subscribers.

Guide to Responsible Investment discount
PEI Media's Guide to Responsible Investment provides practical ESG guidance from over 25 industry experts. AVCAL members receive 15% off, quote AVRI15 to redeem.




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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