Programme - AVCJ Private Equity & Venture Forum

Wednesday, 7 March 2012
15.00	LP-only Summit (invitation only) This special session will feature a series of presentations by senior industry professionals on the key areas of interest for institutional investors, followed by a moderated roundtable discussion on topics critical to the limited partner community. Limited partners return expectations for private equity and are firms delivering them? Are they achievable? The latest trends in asset allocation, fees, and terms Which markets and strategies show the most promise in 2011?
18:30	Welcome cocktail reception
20:00	LP-GP Dinner (invitation only)
Thursday, 8 March 2012
08:00	Registration and refreshments
08:50	Welcome address
09:00	Opening keynote address
09:30	The global private equity landscape In the past few years, private equity has seen its fair share of challenges. The downward spiral spurred by the global financial crisis has resulted in delayed plans as the industry prioritises survival ahead of innovation. With the market now turning a corner new opportunities have arisen for PE players to grow their portfolios and look toward the future. Our panel of senior global investors examines the outlook for private equity globally and considers the implications for Australia and other parts of Asia: The state of private equity globally Limited partners' appetite for private equity partnerships The role of Australia and other parts of Asia in a global portfolio How will private equity continue to produce superior returns? Which markets are currently attractive to PE firms?
10:15	Plenary address
10:45	Networking coffee break
11:15	Can the Australian middle market deliver world class returns? Australia's mid-market has long been the engine of growth for the economy at large. The majority of the country's PE investments continue to be made in this segment. Indeed, the reduced availability of debt, given the emerging issues with finance not being rolled out by banks, for larger transactions has resulted in more investments being made into the mid-market leading to increased competition and a choked exit market. Can the mid-market sustain this growing level of interest? Do mid market businesses continue to provide superior value generation platforms? Which at industries have the most potential to provide growth in the medium to long term? What strategies can be employed for developed mid-market Australasian businesses to expand their brands and value propositions to markets globally?
12:00	Deal dynamics and value creation: Delivering expected returns to your investors In a period of economic uncertainty and a tough fundraising environment, the slowing market forces PE managers to drive value creation to both provide returns to investors and promote the expertise and qualities that PE can deliver. Communicating your effectiveness as senior investors with a good reputation and the right team is vital in order to compete with trade buyers for deals. General partners need a proven ability to manage a slowdown and to position themselves correctly when the market returns, as well as the ability to find the best exit strategies. What are the key features of this new deal environment? What can PE fund managers do to position themselves and their portfolio companies to succeed? How do you build a portfolio of companies that complement each other and can assist in collective growth? PE talks about creating value and alpha but how do you go beyond words and actually deliver? How can Australian general partners create value in the current environment? What are the central pillars of a successful exit strategy?
12:45	Networking lunch
13:45	Challenges facing the domestic PE industry The perception of an asset class with high fee structures, a complex tax environment and a penchant for purchasing companies to strip the bones out of them is an all too familiar depiction of PE in the public domain in Australia. Seldom do you hear how PE expands and grows the companies invested in by increasing staff numbers, or how PE provides capital to homegrown business that otherwise would not be able to secure investment. This public relations issue coupled with the interpretation of the Super System Review as advising investors to seek out the lowest-fee costing assets, rather than aiming for the best outcome for their members in terms of net returns, is challenging PE to remain competitive and a favourable destination for LPs. This panel of experts will discuss strategies for overcoming the current issues facing PE and what the industry can collectively do to promote its unique benefits. What can the industry as a collective do to enhance PE's reputation in Australasia? How can the industry lobby the super funds and government to continue their support of PE? What can be done at a trustee/CIO level to secure support for the industry? What are the consequences of the recent rulings on the PE revenue model and accepted offshore company structures? How can PE investments help improve the lives of Australians and have a positive social impact?
14:30	Venture Capital as a driver of innovation in Australia and beyond How can local firms harness the innovation that exists locally and develop world-class technologies for commercialisation? Do life sciences, ICT and cleantech provide the only real value for VCs, or are other sectors also on the radar? What are VC strategies in foreign markets and how do they apply to the Australian landscape? Is the rising interest in Australian firms by US-based VCs viewed as a positive turn of events by the domestic industry? Given the fact that funding for VC firms has abated in recent years, how will existing firms continue to raise capital and will the industry need to diversify to continue?
15:15	Networking coffee break
15:45	The fundraising market-accessing Australasian and global investors Investments by PE and VC funds increased 44% year-on-year to US$3.6bn. However, much of this funding came before the global financial crisis, reflecting ongoing difficulties in raising new funds. PE and VC funds raised US$2.3 billion in 2011-72% more than the previous year-but the majority of this funding was raised by just three funds. The importance of foreign capital in funding Australian businesses is clearer than ever, with around half of all new commitments to local fund managers sourced from overseas. On this panel, successful fundraisers will share their insight on sources of new capital and the fundraising landscape for both Australian funds and their counterparts elsewhere. Topics for discussion include: Superannuation funds: Appetites, preferences and expectations Overseas limited partners: Who is interested in Australasia and what are they looking for? New sources of capital: Sovereign wealth funds, endowments and family offices: Who are they, and where can they be found
16:30	Fireside chat: CIO's share views and experiences with the asset class
17:15	End of day 1
18:30	Cocktail reception
19:30	Gala dinner Keynote address
Friday, 9 March 2012
08:30	Registration and refreshments
09:00	Hard Talk: Industry veterans answer the tough questions
09:45	Economist roundtable-Global economic and financial outlook What will drive global economic growth in the year ahead? Is Asia on the right track to a more balanced and sustainable growth? Will Australia continue to benefit from the rebalancing of the global economy towards Asia's emerging markets? What happens if China's growth slows? Is the buoyancy of the Australian economy really pegged to China What is the future for ASX? How can key exchanges across Asia be linked?
10:30	Investing in emerging markets Emerging markets continue to attract the interest of limited partners in search of high-growth markets, partly led by slowing Western economic growth. Undoubtedly, with strong economic growth and entrepreneurial ability, new markets offer immense opportunities for PE investments. Investors, however, need to tread cautiously and have a clear investment strategy to make the desired return as emerging markets can be high risk. However, some funds are already on their way to early wins in markets including Cambodia, Indonesia, the Philippines, Sri Lanka and Vietnam. What are the core growth drivers in emerging markets? How do fund managers protect themselves and their investments from untoward influence in these highly emergent and fast-changing environments? What are the unique strengths of the emerging economic superpowers? What markets and industries offer the most attractive investment proposition for PE over the next two years?
11:15	Networking coffee break
11:45	Market update: The India investment story Indian skills have developed strongly in technology and services, and as a result there is a broad array of investment opportunities for PE and VC fund managers across a wide range of sectors including manufacturing, pharmaceuticals, telecommunications and infrastructure. Indian companies have been extremely busy signing off multi-million, or in some cases multi-billion, dollar deals but valuations are flying high and a hotter deal climate will mean higher acquisition costs and pressure to extract higher returns. What is so compelling about the Indian landscape? How can PE spur change at India's many stagnant listed companies? Will stretched stock-market valuations and low-quality deals bring the party to an end? How can PE funds overcome the price objections of India's supersavvy promoters How can Australian firms enter the Indian market and source good deals for investment?
12:30	China-the risks and rewards of entering the market Will China live up to the prediction of its becoming the world's biggest PE market by 2020? What seems certain is that it will continue to grow, driven more and more by domestic, rather than foreign, money. But how long can China continue to offer returns, and what are the potential risks associated with investing there? Panellists deliver considered counsel on the hot topics key to investing in China. Can China's government keep a lid on inflation? Does the threat of an asset bubble forming increase volatility and undermine the profitability of PE investments? How is the appreciating Renminbi, and domestic inflation, changing China's investment landscape? What opportunities does China's rapid economic growth bring to investors? What benefits will China's recently approved Qualified Foreign Limited Partner programme offer overseas investors? What risks should limited partners be looking for in a booming market?
13:15	Networking lunch
14:15	LP panel: Expectations and appetite in Australia Australian institutional investors are at a crossroads when it comes to private equity. Some are considering exiting the asset class, while others are exploring their options overseas. General partners also report different experiences in the fundraising environment, with some seeing strong traction with limited partners, and others facing an uphill struggle. A panel of top limited partners discusses the current state of play in Australian private equity. What is driving investors' current view of the asset class? Is the withdrawal of limited partners a real concern, or simply a retreat of uncommitted latecomers? How are PE allocations likely to change in the near and long term? What can general partners do to attract limited partners to their fund? Given the poor performance of the public markets, do limited partners see this as a good time to invest in PE?
15:15	Conference concludes

Wednesday, 7 March 2012

Thursday, 8 March 2012

Friday, 9 March 2012