Dear AVCAL Colleague,

Federal Budget impact on VC & PE

We congratulate the Federal Government on their Venture Capital initiatives outlined in the budget. The reforms should add to the supply of venture capital, drive commercialisation of research, develop advanced skills, and contribute to the creation of a knowledge based economy. See Press Release by Hon Ian Macfarlane, MP.

Ultimately, we would hope to see more venture funded successes such as ResMed, Cochlear, Austal Ships, SirTex Medical, Cap-XX, Alchemia, Dynamic Hearing, Neuromonics, Phylogica, inter-touch, Wedgetail Communications, Seek.com and Pharmaxis.

Unfortunately, the government does not yet get the message that private equity drives productivity growth in services and manufacturing, drives economic modernization and reform and delivers higher returns to super funds, including bureaucrats and politicians!

Independent research confirms that PE backed companies have 2x the productivity growth rate of non-PE backed companies. Witness the success of Bradken, Austar, Hastie Group, Vision Group, JB-HiFi, Just Group, Riviera Cruisers, Invocare, Affinity Health, Tech-Pacific, Loscam etc.

Ironically, Australian institutions invest in US PE Limited Partnerships that undertake large buyouts – for example the US$15 billion buyout of Hertz. Alas, US institutions cannot invest in large buyouts in Australia through a VCLP, as there is an arbitrary cap on deal size of $250 million. View analysis of budget on PE industry.

AVCAL 2006
26th & 27th September
Cairns Convention Centre

Ticket sales for AVCAL 2006 are now open! We have sold 574 tickets and will shortly be closing registrations. If you have not yet registered, please do so at your earliest convenience to avoid disappointment. Open Conference Program PDF.

International speakers include:

Dr Allan Bufferd, Treasurer & CIO, MIT
Mark Wiseman, Chair of ILPA, Vice President, Private Investments, Canada Pension Plan Investment Board
Leighton Read, Partner, Alloy Ventures
Jim Smith, Partner, Mohr Davidow Ventures

We are enormously indebted to our Platinum Sponsors for their generous support of AVCAL.

Forrester Research – Technology Thunderstorm

The CEO and Founder of Forrester Research, George Colony, delivered a fascinating presentation about what’s next in technology at an AVCAL lunch on May 3rd. View Presentation and Audio file.

AVCAL State Events

Business Integration - Leveraging Synergies

Date: Thursday 29th June, 2006
Time: 12noon - 2pm
Speaker: Ben Frewin, Investment Director, Archer Capital
Venue: Hilton Adelaide, Victoria Room
233 Victoria Square, Adelaide SA 5000
Price: $50 AVCAL Members (inc. GST)
$60 Non Members (inc. GST)

Welcome to this months new Members

Regional Corporate
- Hub Consulting

Individual
- Christopher Brown
- Reuben Buchanan
- Russell Brennan

Student
- Christopher Booth

Yours sincerely,