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18/06/2010
Dear AVCAL Colleague,

It's half way through the year and the pressure hasn't let up at all. AVCAL has continued to be particularly busy on the tax front with a major breakthrough on the Managed Investment Trust Capital Gains Tax regime. The MIT CGT regime has been passed by the house and senate and received Royal Assent. The second tax bill which has not yet completed its passage through the Senate makes significant amendments to the definition of an MIT such that it now covers most AVCAL members. The redrafted definition raised some challenges for registered funds, and some aspects of the definitions raised challenges, for example in relation to investment management activities. These were subject to further confidential consultations and we are expecting that amendments to clarify the definitions will be introduced in parliament next week commencing 21 June.

I strongly recommend all fund manager members to see their tax advisers as soon as possible.

The legislation allows 3 months from the date of Royal Assent of the legislation. The first bill (which has already been given Royal Assent) is the timing from which that is measured. However, for tax distribution computation and notification purposes you will have to make a decision very quickly to ensure that you are prepared for the year end distribution process.

It will soon be membership renewal time. This could also be a good time for those readers of this newsletter who aren't members to consider joining.

Some of the year's highlights include:

Re-designed the engagement model of AVCAL to assist strategic vision and focus on specific industry issues;

Successful lobbying of Government, for improvements to the Managed Investment Trust Capital Gains Tax Regime such that the majority of AVCAL members should be able to access it. MIT Tax with Q&A

On-going lobbying with the Government and ATO regarding tax treatment of private equity gains;

Continued to educate government, corporate Australia, the ATO and the media on workings and benefits to the economy of private equity and venture capital;

Is working with the Government and the investors to develop a new program to support VC and encourage investors in VC

Strengthened our research capacity to create a hub for industry information that supports our lobbying efforts and our members' growing need for reliable data and research.

AVCAL is today widely regarded as the leading source of Australian PE and VC industry benchmarks, and participating members can now also access additional AVCAL industry data and research not currently available to the general public.

Supported the membership through many complimentary briefing sessions on topical issues such as tax and responsible investing

Developed a profile as a leading international player in raising awareness and deploying resources to consider facets of responsible investing

Developed a series of professional development programs aimed at raising the standards of our industry for different member audiences, including fund executives, CFOs and compliance managers, investment managers and service providers.The current calendar link

Ran a successful 2009 Conference despite the challenges of the GFC and a drop in sponsorship revenue. The conference was described by delegates as AVCAL's "best ever". The 2010 Conference is on waitlist.


I'm looking forward to the year ahead with renewed enthusiasm and focus. Representing the needs of AVCAL members remains firmly in our focus. My team and I look forward to working with you in 2010/2011.


Kind regards,

Katherine
Chief Executive

Latest Policy and Research News

AVCAL FY2010 Annual Survey

Next week AVCAL will be launching its annual data survey of GP fundraising, investment and divestment activity in FY2009-2010. GPs will receive communications from the AVCAL research team shortly on this. Email us for further details.

AVCAL Award Nominations

Nominations now open for the portfolio company awards and excellence in investor reporting award.

Email us to request a nomination form or click here for more information on award guidelines.

Nominations close on 30 July 2010. Winners will be announced at the annual AVCAL conference.

Government introduces revised definition of MIT in Tax Laws Amendment Bill 2010 (2010 Measures No 3)

On 26 May 2010, the Government introduced legislation into Parliament to amend the definition of a Managed Investment Trust for access to withholding tax concessions to more closely align the definition used across different parts of the tax law and to widen access to MIT withholding tax concessions for certain wholesale trusts.

The latest mergermarket Private Equity alert

Coller Capital - Global Private Equity Barometer (Summer 2010)

The latest Coller Capital Global PE Barometer indicates that LPs are planning very significant increases to their Asia-Pacific exposure in the next three years. Australia is identified as the most attractive destination for buyouts in the Asia-Pacific region over the next two years, and fifth most attractive for VC/growth capital investment. However, over a third of LPs expect regulatory/tax changes to reduce their returns in developed PE markets over the next few years.

The Performance of LBO-Backed IPOs: evidence from UK and Germany

These two studies from the London School of Economics and London Business School look at the long-term stock price performance of IPOs in the UK and Germany that were previously owned by leveraged buyout funds. The analysis also identifies some of the factors driving outperformance.

AVCAL Networking and Professional Development

AVCAL CFO Forum, GP Members only, 23 June 2010. Register now

AVCAL ESG Program - 22 July 2010. Register now

AVCAL PE 101 - 29 July 2010. Register now for waitlist

AVCAL 2010, Gold Coast, QLD (members only)
September 22-23, Golf September 21.
Register now - WAITLIST NOW!
Other Events

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.

Australian Innovation Exhibition (AIE)
26-27 July 2010, Brisbane

AIE is a meeting place for innovators and potential
investors. The AIE will be the launch pad for many innovations that may, otherwise, not have gained the media and public exposure necessary to find
suitable support to get to market.

Tech23 2010, 19 August 2010, Sydney
Celebrates innovation by showcasing 23 great companies from across Australia. Last year over 400 attended - entrepreneurs, investors, government, media, corporate and industry leaders.
The 23rd Annual AVCJ Forum:

Asia's Private Equity Week, November 9-12, 2010, Hong Kong
. Discount rate for AVCAL members.
Enquire Now




AVCAL AWARDS

Nominations now open for the portfolio company awards and excellence in investor reporting award.

Email us to learn more. Nominations close on 30 July 2010. Winners will be announced at conference.

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

ROTHSCHILD

LEK

Commonwealth Bank of Australia


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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