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December 16/12/2011
Dear AVCAL Colleague,

I would like to wish all our readers a happy Christmas and New Year. I hope you have an excellent break and recharge your batteries. 2012 is shaping up to be an interesting year.

2011 has been busy and I am pleased that we have made progress on a number of fronts. We have had some success in relation to taxation with our messages getting traction at both the political and bureaucratic levels.

I am pleased the outlook for venture capital has been improving. Positive signs include:

The $200m Renewable Engergy VC Fund mandate awarded to Southern Cross Venture Partners yesterday - see AVCAL's response.

The increased IIF final round of funding from $60m to $100m announced recently - see AVCAL's response.

Telstra announcing its $40m grant program for early stage ventures.

The new improved R&D Tax Credit regime currently being implemented.
On the research front, we have just released three new fact sheets: the 2011 editions of our regular PE and VC fact sheets on the current state of play and a new PE and VC Explained information sheet for more general consumption. Next week, we will be releasing our 2011 Deal Metrics Report, in association with Pacific Strategy Partners.

On the operational front, AVCAL is relocating its office just up the road to L10 27-31 Macquarie Place (Kyle House), Sydney. The move will take place sometime late January. We are also changing our system software, member database and web platform to an integrated service. We'll write to you again closer to the time to remind you to login and refresh your details. The benefits for you will be:

Ease of logging in and managing your own account details via a secure, browser based system via the AVCAL website.

Ability to register multiple delegates for events.

You will only have to log personal information once for any subsequent event.


I would like to welcome our newly elected Council members: James Todd, Brian Zekulich, Edward Bostock, John White, Simon Pither and Gareth Dando (re-elected), and express my gratitude to our out-going council members Fiona Pak Poy, John Brakey, Paul Evans and Simon Dighton. And a special mention in honour of the late Dr Mike Hirshorn, who was an AVCAL Council member and responsible for inspiring so many people.

A final thanks to all our members for your help in advancing the interests of our industry, and special thanks to our Partners and the hardworking members of our Council and its many working groups and committees. An outline of our key achievements for 2011 has been published on the AVCAL website.

Kind Regards


Katherine Woodthorpe
Chief Executive
Research News

Fact Sheets
AVCAL has just published three new fact sheets. One provides a general overview of private equity and venture capital, explaining the role they play, their unique characteristics and the investment process. The other two are the 2011 editions of our regular VC and PE fact sheets that provide a guide to the state of play and current opportunities.
PE fact sheet
VC fact sheet
PE and VC explained

Coller Capital Winter 2011-12 Global PE Barometer
The latest edition of this report indicates that LPs see major challenges for the industry in the next few years. Nevertheless, the general sentiment is that 2012 will be a good vintage year and strong medium-term returns are expected from their PE portfolios.
More

Events for 2012

AVCAL has developed a range of professional development, briefing and networking events for 2012. We have published on our website a 2012 calendar of key dates. This will help you mark in your diary now the events you and your colleagues want to attend.

Note that our Professional Development (PD) courses are now categorised as Introductory, Focus and Master. Our first Master class - Doing the PE Deal - was held earlier this month and generated some very positive feedback, with all respondents saying they "highly recommend" the course. Doing the Deal will run again in 2012 along with some other new programs.

View details about Doing the Deal
View 2012 calendar of key events and dates

The following events are not open for registration but we are taking expressions of interest:

PE 101
Tuesday 14 February
Intro - PD
Sydney
Register interest

Warranties and Indemnities Insurance
Friday 17 February
Focus - PD
Sydney
Register interest

PE 101
Tuesday 21 February
Intro - PD
Brisbane
Register interest

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
Industry tools

AVCAL has available on its website numerous resources for members including guidelines and templates.
Industry Tools

Industry News

Developed market buyout funds outperform emerging rivals
Private equity funds targeting developed markets outside the US have outperformed their emerging markets-focused counterparts in recent months, according to Cambridge Associates research which raises further questions about the opportunities in regions.
More

PE sizzles in Asia region
Belying the continuing hangover for private equity investors in the U.S. and Europe thanks to the financial downturn, the party is just getting started for Asian investors, according to a survey from Ernst & Young. This growth will be led by China, India and Southeast Asia, with Australia and Japan also being mentioned by survey respondents as attractive geographies to make deals.
EY report
Wall Street Journal commentary

VCs lobby NZ Govt
NZVCA, the body representing venture capital and private equity investors, has produced a report on how government can tweak the regulatory environment to better support its VC sector.
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

"Australian PE sparkles - One of Europe's best-known advisers believes that Australia's private equity market will attract much-needed overseas investors after new research (by AVCAL/Cambridge Assoc.) reveals it has outperformed rival asset classes during the second quarter in the country."
Dow Jones/efinancialnews - subscriber site
More

"We need more Australian inventions making it out of the laboratory and into the marketplace," Senator Kim Carr said just before the ministerial reshuffle.
More

"The Cooper Review has encouraged some investors to focus on marginal (sic) expense ratios (MERs) rather than ultimate returns," says Tim Flower, vice president for HarbourVest Partners Asia. "Going for the cheapest possible products to compete for people's contributions is going to make them followers rather than leaders in terms of how they can drive returns and take away their ability to outperform."
Asian VC Journal
More - subscriber site

"Institutional investors must be losing patience
with the boards of ASX-listed companies who
swiftly reject private equity bids and then fail to
improve performance," Adrian Herbert, Editor of APEVCJ (Dec issue).

"Venture capital needs Julia Gillard's support"
Investment and Technology News
More

"US venture capital firm The Founders Fund - headed by PayPal co-founder Peter Thiel and Facebook's first president, Sean Parker - is sending three of its top executives to Australia in January to scout and meet with local tech startups," writes Asher Moses in Fairfax publications.
More

"Personally, I get the sense that the fundraising environment is improving slowly. There's been a two-or-three-year period when the volume has been low. It's been a combination of GPs not coming back to the market and LPs taking a bit of a deep breath and pausing their programmes. But I get a sense that 2012 will be a much more active year for fundraising," said Archer's Peter Wiggs to PE Asia.

"New frontiers for venture capital"
Business Spectator
More - free subscriber site

"PEP's Tim Sims wants everyone to think more deeply"
AFR Dealbook
More - subscriber site

"Venture capital vital to our nation's hi-tech survival"
AVCAL commentary
More

"Private equity figures in Australia are hitting new highs as more investors look to Asia Pacific for opportunities. With buyouts up 542 per cent since the heart of the crisis, exit figures are higher than ever, according to research from Dealogic."
PE Asia
Other Events and Member Offers

9th Annual AVCJ Australia & New Zealand Forum 2012
From 7-9 March 2012 at Sydney's Westin Hotel, the AVCJ A/NZ conference will offer attendees a comprehensive view of the challenges and opportunities that currently and a platform to form relationships with key industry professionals and investors.

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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