Programme - Investment Summit (Day two), 15 November
Opening keynote address
Interviewer: Tim Burroughs, Managing Editor, ASIAN VENTURE CAPITAL JOURNAL
Interviewee: Clara Chan, Chief Investment Officer (Private Markets), HONG KONG MONETARY AUTHORITY
* Held under Chatham House Rule
Operations: Seizing the initiative
In a climate of high valuations and intense competition, having the ability to drive operational improvement is crucial. GPs
must move quickly, identifying problems and growth opportunities during the due diligence process and acting soon after the
deal closes. From sourcing bolt-on acquisitions to matching talent with business objectives to conducting technology impact
audits, approaches to value-add are being sharpened. Our panel looks at how investors get it right – and wrong.
- How is the operating partner model evolving?
- Is the 100-day plan approach still relevant?
- How are operating teams adding digital competencies?
- Are LPs satisfied with how GPs are approaching value creation in Asia?
Oliver Stratton, Managing Director, ALVAREZ & MARSAL
Mark Chiba, Group Chairman and Partner, THE LONGREACH GROUP
Alvin Lam, Principal, CVC CAPITAL PARTNERS
Kyle Shaw, Founder and Managing Partner, SHAWKWEI & PARTNERS
Networking coffee break
Track 1: India: Gradual evolution
A measure of India’s development as a private equity market is the emergence of more deals of significant size. There were
two dozen investments of $200 million or above in 2017; the average for the five years before that was nine. It means there is
more for pan-regional GPs to feed on, but managers across the spectrum are developing their India strategies, focusing more
heavily on value creation. Our country specialists share their expertise.
- To what extent are control transactions becoming more available?
- What are the main obstacles to implementing operational improvement strategies?
- How is the industry doing in terms of exits?
- What will Indian private equity look like in five years’ time?
Jonathan A. English, Managing Director, PORTFOLIO ADVISORS, LLC
Sanjay Kukreja, Managing Partner, CHRYSCAPITAL
Ranjit Shah, Managing Partner and Co-Founder, GAJA CAPITAL
Track 2: Japan: Ready to deliver?
The overriding question for Japanese private equity is can the reality live up to the hype. A string of corporate carve-outs
confirmed the longstanding divestment thesis and now investors want to see more. Similarly, a flurry of activity in the middle
market around succession planning has created a level of expectation. In both segments, even if assets are available, pricing is
likely to be a challenge. Our Japanese stalwarts discuss the market.
- What level of competition is there in different market segments?
- How are GPs helping portfolio companies with outbound M&A?
- What is the right approach to value creation in Japan?
- How do middle-market GPs differentiate themselves?
Yukie Tanaka, Managing Director, STEPSTONE GROUP
Richard Folsom, Representative Partner, ADVANTAGE PARTNERS
Tadasu Matsuo, Managing Director, Head of Alternative Investment, Alternative Investment Office, JAPAN POST INSURANCE
Kazuhiro Yamada, Managing Director and Head of Carlyle Japan Buyout Advisory Team, THE CARLYLE GROUP
Track 1: Credit strategies: A firm favourite
Credit managers see ample investment opportunities in Asia while there is healthy appetite for the strategy among LPs seeking
portfolio diversification and to combat the j-curve. These dynamics are responsible for an expansion in the number of players
in this space, with private equity firms adding credit offerings and new specialist players emerging. Whatever the approach –
multi-product solutions or single credit niches – competition is likely to intensify. Our panel explores the key market themes.
- How are GPs building up their resources across the region?
- Which segments of the market are most attractive?
- How do returns in Asia compare with the US and Europe?
- What questions should LPs be asking about different strategies?
Ron Thompson, Managing Director, ALVAREZ & MARSAL
Lucas Detor, Managing Principal, CARVAL INVESTORS
Ilfryn Carstairs, Partner and Co-Chief Investment Officer, VÄRDE PARTNERS
Wooseok Jun, Head of Asia Pacific – Equity and Mezzanine, ICG
Manjot Rana, Senior Principal, APAC Credit, CPPIB
* Held under Chatham House Rule
Track 2: Technology: Still on top
Technology remains a focal point for investors of all kinds, receiving more capital than any other sector as companies raise
ever larger private funding rounds. Some private equity firms are now active participants in this space, while others hang
back – but there is no escaping innovation. If GPs aren’t actively investing in technology, they need to understand how it might
enhance or impede their portfolio companies. Our specialists discuss how best to build up competency.
- Are large highly visible deals distorting the landscape?
- How have new entrants changed the competitive environment?
- How is digital transformation driving value creation?
- What impact has the public market correction had on private market opportunities?
Weichou Su, Partner and Head of Asia, STEPSTONE GROUP
Victor Ai, Managing Director, CHINA EVERBRIGHT LIMITED
Gordon Ding, Managing Director, WARBURG PINCUS
Tony Zhang, Partner, JENERATION CAPITAL
Track 1: Cross-border expansion: Southeast Asia and beyond
If viewed as one region, Southeast Asia appears to be sizeable in terms of population and economic value, with several of its individual members growing at above average rates. At closer inspection, the region can seem fragmented with just as many differences as similarities between markets. How to capture more than just a single market’s prospects? Domestic GPs across nearly every market are looking for scalable assets with multi-jurisdictional appeal, while companies from elsewhere in Asia see it as a natural expansion destination. However, managing a cross-border strategy requires unique skills and resources. Our panelists discuss how they see the opportunity set developing and how they are going about executing on it.
- Is reality catching up with expectations around cross-border activity in ASEAN?
- What markets are best suited to pursue cross-border opportunities in or between?
- What industries and business models are best suited for a multi-market approach?
- What execution challenges exist in cross-border transactions?
Thomas Lanyi, Managing Director, CDH INVESTMENTS
Paul DiGiacomo, Managing Director, BDA PARTNERS
Ralph Keitel, Principal Investment Officer and Regional Lead East Asia, Private Equity Funds, INTERNATIONAL FINANCE CORPORATION
Bert Kwan, Managing Director, NORTHSTAR GROUP
Rodney Muse, Managing Partner, NAVIS CAPITAL PARTNERS
Track 2: South Korea: Consistent performer
South Korea enjoyed a record year for exits in 2017, driven by sales to strategic and private equity buyers plus some relatively
small but significant IPO activity. With some investors showing that they can get money out of Korea, others are happy to put
more in. Divestments by local conglomerates are the big-ticket opportunity, but there are also plenty of middle-market deals
involving succession planning and modernization. Our panellists assess the investment landscape.
- How can private equity investors participate in chaebol restructuring?
- What drives value creation in the current environment?
- How has the competitive landscape evolved and what do GPs need to do in terms of differentiation?
- Can Korea continue to deliver strong exits?
John Y.S. Lee, Principal, LEXINGTON PARTNERS
Younggi Han, Executive Director, VIG PARTNERS
T.J. Kono, Partner, UNISON CAPITAL
Hae-Joon Joseph Lee, Partner and CIO, IMM PRIVATE EQUITY
Networking lunch break
Wheel of commitment
After standing room only last year, don’t miss the return of this light-hearted look at the market.
Doug Coulter, Partner, LGT CAPITAL PARTNERS
Shane Chesson, Partner, OPENSPACE VENTURES
Jireh Li, Chief of Staff, SOURCE CODE CAPITAL
Eric Marchand, Principal, UNIGESTION
Katja Salovaara, Senior Private Equity Portfolio Manager, ILMARINEN
Kelvin Yap, Managing Director, Hong Kong, HARBOURVEST PARTNERS (ASIA) LTD.
Exits: An evolving landscape
Private equity exits reached a record high in Asia last year, largely on the back of substantial trade sale activity as strategic
investors – and increasingly GPs – aggressively pursued Asian assets. As a result, distributions from funds in Asia once again
exceeded capital calls, with the returns from top-quartile managers exceeding many LPs’ expectations. However, it remains to
be seen whether performance can be maintained in more recent vintages. Our panelists consider what the future holds.
- Which exit routes have proved most fruitful in 2018?
- Will Asia inevitably see more secondary buyouts?
- What can investors do in the early stages of ownership to maximize exit options?
- How do fund managers address the currency risk issue with LPs?
Lorna Chen, Head of Greater China and Partner, SHEARMAN & STERLING LLP
Scott Chen, Partner and Managing Director, TPG
Darren Massara, Managing Partner, NEWQUEST CAPITAL PARTNERS
James Mi, Founding Partner, LIGHTSPEED CHINA PARTNERS
Emmett Thomas, Partner Head of Asia, ADVANTAGE PARTNERS
* Held under Chatham House Rule
Family offices: Finding the right fit
Able to respond quickly to opportunities, unafraid to discard traditional institutional investor mindsets, and sometimes making
valuable strategic input, a family office can be a very useful LP. The challenge for GPs is finding groups that are a good fit for
their strategy. Family offices vary enormously in terms of resources, risk appetite, professionalization, and appreciation for blind
pool funds. Our panel discusses the ways in which private equity firms can work with them.
- What do family offices really mean when they say they want to be partners?
- How should GPs go about cultivating these groups as potential investors?
- What sectors, geographies, and strategies are most appealing in Asia?
- How are Asian family offices evolving in terms of structure and professionalisation?
Jackson Chan, Managing Director, EATON PARTNERS
Jamie Cayzer-Colvin, Head of Funds pool, CALEDONIA INVESTMENTS
Sherry Lin, Head of Global Venture Capital, WILLETT ADVISORS
Sam Robinson, Managing Partner, NORTH-EAST PRIVATE EQUITY ASIA
Catherine Shiang, Managing Director, ACA LTD.
Daina Spedding, Investment Manager, LEWIS TRUST GROUP
Close of summit