Wednesday, 20 July 2016
||Registration and refreshments
|| Welcome remarks
||Opening keynote address
The view from Asia: The forces shaping private equity in 2016/17
Uncertainty in the stock markets and political instability around the world mean investors, especially in the emerging markets, might take a more cautious approach this year. However, challenging macro conditions can translate into opportunity for investors that can uncover attractive deals at lower valuations. In this session a panel of leading industry professionals will discuss their strategy for 2016/17.
- What is the 2016/17 outlook for the region, and where will we see the largest volume of deals?
- How will GPs navigate the turbulent political and economic environment?
- Which markets and sectors provide the best opportunity for success in Asia?
- What are LPs looking for in terms of an Asia strategy, and has this changed in the last 12 months?
- Is volatility the new norm, and will it create opportunity?
||Networking coffee break
Cross-border deals: Myth versus reality
As companies turn their attention to ASEAN to tap into a strong consumer market and a cost-efficient labour force, cross-border deals continue to be a focus for GPs-but few have truly found success. Challenges arise post-investment through cultural differences, lack of local knowledge and expertise, and differing management styles. However, if executed and managed properly, these deals can be hugely rewarding.
- What constitutes a successful cross-border deal?
- What are the most attractive sectors for growth?
- What is driving cross-border deals, and what are the dynamics in the marketplace?
- What are the key success factors for post-deal integration?
- Are these deals generating returns? How do they compare with local deals?
- What is the current level of M&A activity, and from where are most transactions originating?
Sector spotlight: Fintech on the rise?
With financial technology (fintech) on the rise in Asia, private investors and financial institutions alike are keen to explore the opportunity and understand its scope. VCs see a big opportunity, and banks need to keep an edge over non-traditional players looking to disrupt the industry. To understand the potential of fintech, one only needs to see the demographics of the population with access to mobile phones and without a bank account in Indonesia, the Philippines, India and China. In addition, the efforts of various governments for financial inclusion and regulatory improvement is further enhancing the opportunity for fintech. From payments and peer-to-peer lending to blockchain, our expert panel will discuss this sector's potential.
- How is fintech changing the financial sector?
- What are the regulatory challenges for fintech across the region?
- How are financial institutions embracing fintech and fighting the disruptors?
- How is the evolution of payments improving social inclusion?
China spotlight: Examining whether volatility creates opportunity
While headlines about instabilities in China are sending ripples throughout the investment community and dampening the positive sentiment felt in recent years, the region's growth story is still attractive. China remains Asia's biggest market, with strong fundamentals. Opportunities exist, possibly more so in this climate, for savvy investors to capitalise on. Our panel of experts analyse the macro story and what this means for PE.
- How is the macroeconomic situation impacting the Chinese private equity market?
- What are the opportunities and challenges for GPs?
- Have LPs readjusted their returns expectations, and what do they expect in the future?
- Are investors still keen on venture deals, or is the VC space cooling down?
- Who are the emerging LPs in China, and are they investing in the asset class?
Indian private equity: The return
On the back of a record year, Indian private equity is riding high. Deal activity and even exits have increased significantly as LPs' confidence returns. The government is pushing forward with the reform agenda and the recent announcement to allow pension funds to invest in alternative assets will help the domestic fundraising environment. Venture investments hit an all-time high in 2015 with local and international funds flocking to the country for deals, although funding towards the end of the year slowed down and valuations are getting back to more realistic levels. Will India finally live up to expectations?
- Discover where the Indian opportunity stands now
- Examine the latest on valuations, fundraising and exits
- Find out which sectors are attracting the most attention
- Determine whether there is a bubble on the venture front
- Discover how LPs are viewing India now
||Networking coffee break
What keeps private investors awake at night?
In a highly informative and frank discussion, a panel of veteran investors will tackle a range of industry issues keeping them awake at night. With all the macro and political volatility in the world today, this session is a timely snapshot of current trends impacting the industry. The issues on the table are the following:
- Macro and political issues: the slowdown in China, the Eurozone and Brexit, US elections
- Dry powder, valuations, exits
- GP-LP issues: fee transparency, team stability and retention, consistency
- Next fundraising cycle
- The shine coming off Asia as an investment destination
Venture outlook: Navigating the ASEAN consumer story
In a fast-paced and connected world, technology is playing an important role in everyone's life, enabling innovators and investors to capitalise on the opportunity provided by this digital revolution. Venture is booming across the region, notwithstanding the recent correction in valuations. Southeast Asia, with its youthful demographics, rapid economic growth, urbanisation and emerging middle class, is a big draw for entrepreneurs, venture firms and corporations looking to get or keep a competitive edge.
- How is the VC ecosystem developing in the region?
- Which sectors and industries are hot at the moment, and which locations have the most interesting start-up activity?
- How important is localisation, given the geographical, cultural and language challenges in the region?
- Where are the exits for VC-backed companies, given the fragmentation of the various capital markets?
- What challenges lay ahead, and where is the industry heading?
AVCJ roundtable discussions: Meet the experts
Each table will be assigned a key theme/country with industry experts, to deeply examine the PE landscape of a country, in an environment that will promote sharing and networking. The interactive discussions will focus on investments in the following destinations:
||Close of day 1 and networking cocktail
Thursday, 21 July 2016
||Registration and refreshments
Is ASEAN proving to be an attractive buyout destination?
As global buyout firms deploy more resources in Asia-Pacific and intensify their focus on Southeast Asia, using Singapore as a hub, there is an expectation that rising prosperity, political stability and industrial consolidation will create opportunities for buyout deals. But are there enough mid- to large-size transactions to go around, and will they come at reasonable prices?
- How critical is it to form relationships with local partners and business leaders to source and win deals?
- Will a greater availability of leverage increase the potential for buyout deal flow?
- Which markets are most likely to provide opportunities for buyout deals that are available for private equity?
- Will large deals in the region be hundred-million-dollar rather than multi-billion-dollar transactions?
Creating value in your portfolio company
In a highly practical session, a panel of leading executives, GPs and VCs share their experiences, observations and tips on how to work with founders to build companies. As these companies look to expand across the region, they face a geographically fragmented and culturally diverse market. Therefore, having the right team, collaborative relationships and an effective strategy is a necessity for adding value and getting alpha.
- Where in the growth trajectory does the GP or venture partner come on board?
- How do GPs/VCs facing geographical and infrastructure challenges build scale?
- What hurdles do founders surmount to ensure a fruitful, trusting relationship with an outside partner?
- How important is control, and how are executive decisions made to shape the direction of the business?
||Networking coffee break
Private debt: Asian opportunities
The different strands of private debt in Asia, acquiring debt on the secondary market, providing event-based mezzanine financing to provide acquisition financing as part of an LBO structure, continue to create interest in the GP community. Complementary to this, LPs are also readier than ever for portfolio diversification, and exposure to credit and debt investing, as they look to mitigate risk across asset classes and fund types. With GPs continuing to raise specific debt funds, or provide blends of debt products targeting investments, this sector continues to flourish.
- Has there been an increase in debt-oriented strategies and direct lending in Asia?
- How does Southeast Asia compare with China when it comes to private debt?
- Given the various country complexities, what opportunities-and risks-are there for investing in distressed debt in Asia?
- How does a private debt investment strategy compare with a private equity investment strategy?
- How should an LP manage allocations to the multi-segmented private debt sector?
LPs' views: Southeast Asia's place in a private equity portfolio
Southeast Asia seems to be a conundrum for LPs. The growing consumer class and political and economic liberalisation are appealing for investors, against the volatility and the need for local relationships and know-how to succeed. International LPs debate this compelling market, the case for committing their capital, and where they place the region on the risk and reward scale.
- How do LPs view Southeast Asia compared with the rest of the world?
- Is Southeast Asia only viable when viewed as one investment destination, or do LPs investigate specific countries in the region?
- What do GPs and LPs need to do to make sure they are making the right partnerships and striking the best deals for co-investments?
- Are LPs making more direct investments and getting involved in deals?
- What considerations to ESG are LPs expecting when choosing a GP?
- What is the best approach for allocation of funds, and can we expect any allocation changes?
Close of conference