With the support of its members, AVCAL has been able to continue advancing the interests of the private equity and venture capital industry, making significant progress on our key priorities for 2013-14. A summary of our priorities and what we’ve achieved are outlined below.
Support the development of effective collective investment vehicles
- Certainty of tax treatment for all VCLP/ESVCLP investors – This continues to be an important issue for AVCAL members. An agreement had been achieved with the former Labor Government to progress this to the best outcome for the industry, and AVCAL is actively engaging with the new Coalition Government to retain these initiatives.
- WA Limited Partnership Act amendments – the State Government is now in the process of introducing legislation to facilitate the establishment of VCLPs in WA.
- Managed Investment Trusts, thin capitalisation reforms – AVCAL remains actively engaged in the consultation process on these reforms.
Assist to create increased engagement with LPs
- LP Stakeholder Committee – Formed an LP working group that was elevated to a strategic stakeholder committee to set strategic direction for the segment, discuss relevant issues, drive actions and develop engagement programmes.
- LP Forum – Held the first investor-only forum for LPs in Melbourne in July 2013, which was attended by 38 participants and received excellent feedback. Will now become a regular part of the annual calendar.
- alpha Conference – after a successful but more subdued attendance in 2013, the decision was taken to move alpha 2014 to Melbourne to attract a greater LP attendance rate.
- Portfolio Holdings Disclosure rules – Provided feedback to Treasury and the Government, working with peer industry associations, to argue for more time to consider the possible adverse implications of the proposed rules.
- Performance benchmarks – We have continued to work with Cambridge Associates to improve the usefulness of the benchmark reports. In 2013, members were given additional access to Cambridge Associates' PE-only benchmarks, PMEs and 15-year benchmarks.
- Role of PE in super portfolios – AVCAL Research staff have given presentations on this to trustees and other relevant audiences, and published related research in super trade publications.
- Research resources for LPs – AVCAL Research has been working on ramping up resources available to LPs. In addition to the online Research Library, we have worked with LP and GP members to produce slide decks and other resources tailored for use for/by various LP audiences. AVCAL is also working with LPs & asset consultants with bespoke research to increase awareness and insight into the local PE and VC industry.
- ESG Disclosure Framework for PE – This framework was developed by 40 LPs and 20 PE associations (including AVCAL) and a number of GPs, and endorsed by Council in 2013.
Help develop a sustainable VC sector
- IIF – Successfully argued the economic merits of an extension of the IIF programme by the former Government with an additional $350m and a confirmation that future returns would be recycled. We continue to engage with the new Government to maintain support for the IIF and to implement the McKeon Review recommendation for the establishment of a Translational Biotech Fund.
- Quarterly R&D tax credits, ESS tax framework for early stage companies – We are continuing efforts to ensure the passage of these important reforms which will have a significant positive impact on many VC investees.
Contribute to improved perceptions of PE and VC
- Economic role of PE and VC – Published two key reports to enhance the understanding and perception of the asset class. These are the joint AVCAL/Deloitte report on the economic contribution of PE in Australia and AVCAL publication on the economic impact of VC in Australia.
- Media – Held media roundtables to demystify the industry, with one VC and one PE held in 2013 to drive positive stories. Media also attended alpha conference.
- PE 101 – This programme remains extremely popular, with all sessions in 2013 selling out. Tailored in-house sessions for Government staffers and regulators were also held during the year.
- Annual research programme – Key reports for the year included the Yearbook, Deal Metrics report, Market Observations report, and quarterly Cambridge Australia benchmark reports.
- Fact sheets – Our annually-updated PE and VC Fact Sheets setting out the value proposition of investing in PE and VC in Australia remain among our most heavily-accessed online reports.
- Communication efforts – Developing and communicating key messages through website, reference materials for members, conference messaging including programme booklet.
- International engagement – We remain closely connected with our peer associations worldwide through the Global Venture Capital Council and through bilateral engagement. This helps AVCAL keep abreast of emerging global regulatory issues, explore avenues for collaboration and build on industry best practice.
- Speaking and member engagement initiatives – Held several key events such as AVCAL Connect and the award case studies, where industry professionals shared their experiences about the industry and working to transform and improve businesses. AVCAL staff also participated as speakers at key industry conferences and member briefings/seminars throughout the year.
- Customised research for members – Provided customised research services for member GPs for investor presentations, internal research.