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21/04/10
Dear AVCAL Colleague,

I have to start this newsletter with some very sad news. Our Financial Controller, Mike Burness passed away suddenly on Saturday morning. He had only been with AVCAL for 4 months but had already had a positive impact on the organization. We will miss his cheery nature and professional approach very much. Our thoughts and condolences go to his family.

I wish I could balance that sad news with great results on the tax front but I cannot. We continue to work with the Ministers, especially the Assistant Treasurer, and the Treasury, particularly on the MIT CGT legislation. However, the current drafting of the definition of an MIT still does not cover even a small proportion of the industry, despite the Government's publicly stated policy intent to include us. Needless to say we find it very disappointing that the implementation will not deliver the announced policy. If we get any useful updates we will feed them directly to our members via a special flyer.

On the VC front we continue to have a useful dialogue with Minister Carr and DIISR as we refine our thinking about a potential successor to the IIF program. We will be seeing the Minister next week to discuss progress.

Kind regards,

Katherine
Chief Executive

Latest Policy and Research News

MIT Exposure Draft Tax Laws Amendment (2010 Measures No. 3) Bill 2010 released for comment

On 16 April 2010, the Assistant Treasurer released for public consultation the exposure draft legislation that will amend the definition of a managed investment trust (MIT) in relation to withholding tax rules. The closing date for submissions is Friday 23 April 2010

The latest mergermarket Private Equity alert

mergermarket Press Release & League Table - APAC

Second R&D Tax Incentive Exposure Draft Legislation Released

Further to submissions on the first exposure draft, the Treasury and DIISR have released the second R&D tax incentive exposure draft.
The incentive programme is targeted to start on 1 July 2010. The closing date for submissions on the second draft exposure is 19 April 2010.

Arnold Bloch Leibler paper on Secondaries Transactions

A private equity secondaries transaction could either be the sale of a limited partnership or a portfolio company typically to another private equity firm. The effects of the GFC, resulting in capital flow constraints and changes in Government regulation has allowed the secondaries market to provide an increasing source of exit. This report by Arnold Bloch Leibler discusses the trends, reasons, motivations and issues behind the global private equity secondaries market.


The Australian Alternative Investments Industry

This recent publication by Austrade looks into the Australian alternative industry, encompassing real estate, infrastructure, hedge funds, private equity and venture capital.

Thomson Reuters 2010 March-end quarter global M&A review

Thomson Reuters 2010 March-end quarter global M&A review shows a 21% increase in global M&A activity compared to the March-end quarter of 2009. Emerging markets accounted for 33% of worldwide M&A, totalling US$182.8 billion.

Worldwide PE backed M&A activity totalled US$32.4 billion during the March-end quarter of 2010, the largest opening period since the March-end quarter of 2008. PE backed M&A accounted for 6% of worldwide announced M&A in the same quarter.

Global Private Equity Report 2010 by Bain & Company

A recent publication by Bain & Company discusses the sudden changes to the global private equity industry during the GFC, resulting in adjustments in deal structure, fund raising, performance and other key factors. These changes forced several major PE houses to change their portfolio management strategy to accommodate for the stress on their resources, to help their investee companies handle the downturn and to lay the investment foundation for when conditions improve.

Venture Capital Success Stories

AVCAL has redesigned its presentation of local venture capital success stories. This more informative template will showcase details on investment, divestment and employment figures, along with any Government assistance received. We will endeavour to constantly update this page; however we request that our members also keep us up-to-date with new developments.

AVCAL Networking and Professional Development

NSW MBO Golden Circle, 14 May 2010. Starts at 5.30pm. Register now

NSW Networking Dinner, Speaker TBA, 20 May 2010. Register now

PE Boot Camp, Sydney, POSTPONED TO THE 20TH OF MAY Enquiries

AVCAL Corporate Golf Day, we are still seeking a major event partner for this event on 27 May 2010. Register now or contact us to discuss partnership

QLD MBO Golden Circle, 16 June 2010. Starts at 5.30pm Register now

AVCAL 2010, Gold Coast, QLD
*September 22-23, Golf September 21.
Registrations open 9am 4 May. AVCAL Partners open 9am 27 April.

Master of Ceremonies, Ali Moore, ABC's Lateline Business
Keynote address by Bernard Salt, KPMG Partner and renowned demographer
Global economic update by Bill Evans, Westpac
Ed Day from Brookvine will reprise his role as MC for the AVCAL Awards


There are limited places to this event. National Corporate members will be restricted to 8 delegates (formerly 10) in 2010. Check your membership profile with us if in doubt.

Be registration ready by ensuring that your personal details are up to date. Update your details now.

*Note this year's conference does not lead into the NSW Labour Day long weekend.
Other Events

Cleantech Science and Solutions - mainstream and at the edge, 4-6 May
The Conference is to be held at the Novotel Glen Waverley and is bringing together leaders in the field from across the world who represent organisations and companies from a broad range of sectors. They will discuss and investigate how economically viable clean technologies will drive the world towards sustainability through increased efficiency, reduced waste and the adoption of renewable energy.

Family Wealth Investing, 25 May Sydney, 27 May Melbourne
Dealers Group is working with Myer Family Office on a 1 day forum for families and their advisers specifically on Investing.

The 9th HKVCA China Private Equituy Summit, 7 June.
The China Summit is the major annual event of HKVCA for more than 300 Venture Capital and Private Equity practitioners, leading corporate, professionals and enterprises around the region to discuss the latest developments and all aspects in private equity investment in China.


The PEI Responsible Investment Forum, 10 June, London, England
Co-hosted by Private Equity International (PEI) and the Principles for Responsible Investment (PRI), the forum will tackle one of the most important themes in private equity today: how to create value by following environmental, social and governance (ESG) best practice in investment strategies.


Green Investment Summit, 12-15 July
Well regarded as the platform of choice for all things on financing and investing in green projects, GIS Indonesia offers decision makers a unique platform for debating matters of importance, networking with high level participation in green projects and opportunities to advance national agendas in addressing global climate change.




RESEARCH PARTNER

Ernst & Young


AVCAL 2010 PARTNERS

BOS International

KPMG

Quadrant

Maddocks

TPG

KKR

Advent

INVESTEC

Ironbridge

AON

Next Capital

Champ Private Equity

Credit Suisse

Gallagher

Pacific Road Capital Management

Pacific Equity Partners

Westpac

Archer Capital

Castle Harlan

NAVIS

NBC Capital

CATALYST

Intralinks

Propel Investments

Coller Capital


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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