Did you know? Since 2005, over $1b of Australian venture capital has been invested in helping
develop new and improved medical drugs, IT and communications technologies, and cleantech.
We’ve moved into the new financial year, which means we’ve entered a new membership cycle. Membership can now be easily renewed online thanks to our new system. Just remember, if your membership isn’t up-to-date your ability to access member benefits (such as attending the conference) will be impacted.
On the policy front, we’ve been busy consulting with Treasury on the current proposed implementation of the MIT regime. As these issues are not specific to our industry alone, we are working with other industry bodies such as the Property Council and professional advisory bodies to provide a collective voice in our deliberations with the Government.
We were in touch with the Assistant Treasurer’s office last month and provided a private briefing note, highlighting the urgent need to provide clarity on the tax treatment of VCLPs for all domestic investors. The Assistant Treasurer will be speaking at an AVCAL lunch this month.
I also had a series of productive meetings over the last month with Government and Opposition MPs, and advisors. We discussed the key issues impacting the VC industry and the need for commitment to a long-term federal VC program as part of the innovation ecosystem. There was generally a high level of engagement and interest, but there is still more work to be done.
We are yet to see a report from the VC Review, which will hopefully have policy recommendations for support for the VC industry. In the meantime, applications for the final tranche of the IIF have closed with a substantial number of applicants. AVCAL managed to get an additional $60M of the returns to the Government from previous IIF rounds to be included in this final tranche.
There isn’t room here to detail all recent policy developments, but I am pleased to announce the launch of our new Members Policy Portal (you will need to be logged on to access this). This replaces the Member Only Communications page and provides a one-stop hub that tracks current policy issues and key global tax and regulatory developments. You can also download the updated PE & VC tax issues table here.
You will have also noticed we are increasingly offering a diverse range of professional development courses. For the first time ever, and in response to member requests, we are running focus courses on fundraising and due diligence. These specialist courses are a great way to develop in-depth industry knowledge, so we hope to see you there.
Get your award nominations in for AVCAL's Annual Awards before they close at 5pm EST on 31 July 2012. If you haven't already done so, request a nomination form now for the Portfolio Company Awards or contact us to access the Excellence in Investor Reporting Award nomination platform. Award recipients will be announced on Thursday 20 September at the alpha conference.
Nominations for the Australian Growth Company Awards also close at 5pm on 31 July 2012. Award recipients will be announced 25 October 2012.
Places are still available for the 2012 AVCAL alpha conference. Register now to secure your spot. When you register, you'll receive a confirmation email with website links to access AVCAL's special hotel rates, and discounted flight rates thanks to our Official Airline Partner, Virgin Australia. If you're feeling a bit sporty, you can also register for the golf day being held at Links Hope Island or the inaugural 5km alphathon.
AVCAL Exit Study (members only)
AVCAL has just released a research briefing note on Australian private equity exits between FY2009 – FY2011. Using data collected via AVCAL’s proprietary research platform, the report examines 130 full/partial exits by PE funds over this period, which generated $5.7b in proceeds. During this period, the sales of PE-backed companies recorded an average IRR of 40% and an average times money multiple of 2.6x.
AVCAL FY2012 data collection
AVCAL has started its FY2012 data collection (via the AVCAL Research Platform), and we would like to remind our GP members to submit their data by 3 August 2012. As members know, this data is instrumental to our advocacy and research efforts on behalf of the industry. If you have not received your login details by now, please contact research@avcal.com.au.
Participating GPs who provide their data will also receive the following additional benefits:
1. Access to more detailed industry data (see details).
2. Complimentary pass to an industry statistical briefing by AVCAL following completion of the survey.
3. Customized research reports by request.
Trends in State Pension Asset Allocation and Performance, Cliffwater LLC
State pension funds with higher allocations to alternative investments generally had superior 10-year returns, and PE was one of the key drivers of this outperformance.
Global Alternatives Survey 2012, Towers Watson
Of the top 100 alternative investment managers globally, PE managers (22%, US$696 billion) have the second largest share of assets after real estate managers (35%, US$1.1 trillion). Australian PE FoFs IFM (24), QIC (25), MLC Investment Management (33), Quay Partners (34), and Macquarie Group (41) are among the global top 50.
Global Alternatives Survey 2012, Russell Investments
Institutional investors globally are showing significant demand for alternatives to support diversification and alpha generation. 90% of the institutional investors surveyed cited diversification as one of the top three reasons for using alternatives, followed by volatility management and low correlation to traditional investment (64%), and return potential (45%).
AVCAL Research library
The research library is a one-stop centre for accessing current international research and industry reports on PE and VC. A wide selection of items has recently been posted - look for the NEW symbol.
Tech23 is an event that celebrates Australian innovation. It brings together 23 carefully selected young technology companies, spotlighting their technologies in front of panels of Industry Leaders, investors, entrepreneurs, and 400+ engaged and informed attendees.
