AVCJ Private Equity & Venture Forum

India 2011
1-2 December  JW Marriott, Mumbai

by 9 Sept 2011

The compelling Indian PE story: An investors dream?
L e a d Pa r t n e r as Ia ser I es Partner

Pa r t n e r s

k n o w L e d g e Pa r t n e r

c o c k ta I L r e c e P t I o n h o s t

s h o w c a s e Pa r t n e r s

I n v e s t m e n t P r o m ot I o n Pa r t n e r

InternatIonaL BusIness newsPaPer

P h I L a n t h r o P y Pa r t n e r

s u P P o r t I n g o r g a n I s at I o n s

med Ia Partner

Dated: 3 Aug 2011
All information in this brochure is correct at the time of printing. The organiser reserves the right to amend any details.

as portfolio companies mature. also whether regulatory and political risks. and to meeting lots of new ones when we return to mumbai this december. over whether the market as a whole can live up to expectations. thought-leading private equity fund managers will work through this year’s issues and debate: • which sectors and markets in India present strong value propositions for PE investments? • where do LPs place India on their risk/reward scale compared with the rest of the world? • how can private equity firms position themselves as industry experts that create value and alpha? • what is the long-term forecast for PE in India and China taking into consideration economic stability and continuing growth? • what are the mechanisms for sourcing. are dampening LPs’ appetite.nathani@incisivemedia. Investment officer head of Private equity managing director strategy director Fund manager Job titles: Highlights from last year • over 300 participants from 15 countries and 250 companies • strong LP turnout and industry-leading speakers • a crucial barometer of sentiment and bellwether for the asian Pe industry Limited Partners 12% Placement Agents 1% Investment Banks 4% General Partners 49% Chairman / CEO / Managing Partner MD / CFO / CIO / Partner 36% 12% Other 1% By type of company By title Professional Services 26% Corporates 2% Other 6% Principal / VP / Associate 33% Director / GM 18% CONTACT ANIL NAThANI TO BOOk YOUR SEAT NOW! REgISTRATIOn EnqUIRIES: Anil nathani t: +852 3411 4938 e: . the Indian economy has been propelled by liberalisation policies and rapid gentrification. India’s long-term potential is clear with more exits than recent years expected in 2011. For investors looking to juice up lacklustre returns in other Pe markets.ThE COMPELLING INDIAN PE STORY: AN INVESTORS DREAM? regarded as one of the biggest components of asian growth today. added to high asking prices on the part of @: www.avcjindia. the twelfth in this annual series of highly-successful forums: the AVCJ India Forum gathers the top India-focused private equity and venture capital professionals to discuss the investment opportunities both domestically and across the region. boosting consumer demand as well as trade volume. corporate development cFo  directors of corporate development  risk insurance carriers and brokers  Investment banks  management consultants  accounting firms      sr. executing and closing secondary private equity transactions? • how were the industry benchmark exits of the last two years sourced and executed? we look forward to seeing all of our old friends again. 5 REASOnS TO ATTEnD:  Meet established and new LPs  Discover the latest Indian market developments and opportunities from the leading gPs in the region  Share your insights with your global and domestic peers and investors  network with your peers and forge your new business contacts  Identify the critical issues and opportunities affecting your decisions WHO SHOULD ATTEnD: Job functions:              corporate ceos Private equity professionals commercial bankers mezzanine players corporate financiers Lawyers due diligence providers cFos ceo cIo managing Partner director. there are still question marks however.

Clean Technology Investments InternatIonaL FInance corPoratIon Bruno Raschle Executive Chairman adveQ management ag Pinal Nicum Partner adams street Partners David G Pierce Chief Executive Officer sQuadron caPItaL Anubha Shrivastava Managing Director. chief executive.COM .SPEAkERS kEYNOTES William Owens Asia Chairman aea Investors (asIa) Ltd Mukund Rajan Managing Partner. Asia cdc grouP PLc Sebastiaan van den Berg Managing Director harBourvest Partners (asIa) LImIted SENIOR INDUSTRY PROFESSIONALS Anil Ahuja Head of Asia 3i asIa Ltd Srinivas Chidambaram Managing Director and CEO JacoB BaLLas caPItaL IndIa Pvt Ltd (JBc) Nikhil Rajpal Partner everest grouP Archana hingorani Chief Executive Officer & Executive Director IL&Fs Investment managers LImIted Shankar Narayanan Managing Director the carLyLe grouP Lachmi-Niwas Sadani Managing Director & CIO .Tax & Regulatory Services kPmg IndIa PrIvate LImIted Sunish Sharma Managing Director generaL atLantIc What delegates say about AVCJ Forums: was a to network with “ The conference Equitygreat opportunitywere very open insenior professionals from the Indian Private community who sharing their insights in this important market. 3i FOR ThE LATEST CONFIRMED SPEAkERS GO TO WWW. Private Equity tata oPPortunItIes Fund LIMITED PARTNERS Patricia M.AVCJInDIA. Climate Business Group . Dinneen Managing Director sIguLer guFF & comPany LLc Praneet Garg Principal asIa aLternatIves Pavan Gupte Head of Asia hermes gPe Nikunj Jinsi Head & Chief Investment Officer.NIIM nomura grouP Punit Shah Executive Director.” Michael Queen..

and the Alternative Investment Fund Managers Directive (AIFMD) attempts to create a “Fortress Europe” from which non-EU funds will be excluded. bring rigor to business systems and processes. • PE talks about creating value and alpha but how do you go beyond words and actually deliver? • Do you need to be sector specific and tailor your expertise to this industry to truly control an investment? • How do you build a portfolio of companies that complement each other and can assist in collective growth? • Does profit growth or multiple expansions drive value creation? 10:30 11:00 Networking coffee break The growing trend of the Independent Indian fund manager Fund managers turning into entrepreneurs and floating their own funds has become a trend in India. construction and pre-development of projects. how do China and India compare side-by-side and what are the similarities and differences between Asia’s billion-plus-consumer markets? Experienced PE investors will discuss the following issues specific to China and India. Have newly launched funds—that can capitalise on their local market knowledge and strong networks—been successful in their fundraising efforts? Has the emergence of domestic spin-off funds fuelled competition among PE firms and driven up valuations? Veterans of the Indian PE market who have started their own funds will discuss the following points: • What are the differentiators that set the independent domestic funds apart from the established funds? • Who are the LPs that are opting to invest in these maiden funds? • When is being a domestic fund an advantage: at the deal table or at the exit? • What has been the main driver for fund managers to become entrepreneurs and float their own funds in India? • How can independent funds with a handful of players compete with the major firms that have a global presence and a wide range of inhouse resources? 12:00 Investing in healthcare and education Healthcare as a viable PE option is gaining momentum as firms begin to understand the potential in seeing healthcare as a long-term investment. Are RE investments too risky or is the sheer scope of the opportunity too good to miss? • What are the drivers that make PE attractive to RE and are they sustainable? • Can India’s middle-class wallets match their desire for new homes and in turn the supply that the RE sector is seeking to provide? • What is the correct way to govern an RE project and how do you safeguard against the potential issues that can cause delays and budget blowouts? • What are the dynamics driving the development of business parks and built communities? • How much interest do overseas LPs have in Indian real estate? 15:00 India vs. well before initial term sheets are drafted. But PE players have expressed concern about difficulties in exits and governance issues in investee companies. Firms that bring operational expertise to the table will enjoy a clear competitive edge and by being actively involved in the operations of their portfolio companies.PROGRAMME Thursday. The first layer is comprised of the foreign and domestic PE funds that already exist in the Indian market. As the two biggest components of growth in Asia today. the already appealing India and China PE landscape will only continue to attract more overseas interest. they strengthen corporate governance. After initially peaking in late 2007. assist in raising new rounds of capital. despite costly doctors and limited health insurance? 12:45 13:15 14:15 keynote address Networking lunch The risks and returns of real estate The real estate (RE) market in India. LPs are becoming more discerning about whom they invest with. from which it recovered by 2010. now that most banks have shut their doors on this sector. Firms are looking at greenfield as well as brownfield (existing facilities) expansions in the region with tremendous scope for world class tertiary and secondary care facilities in smaller cities. provide access to their business networks and help fill critical management roles. particularly the residential segment. Education is also an attractive asset class for LPs as there is less correlation with the broad economic trend line and India seems an ideal market because of demographics (young population) and an economy focused on services (instead of industrial production like China). especially as there is an estimated $20bn in funds that are yet to deploy. creating a second layer in the PE industry. The key for PE funds is differentiation through a track record of value creation and an investment philosophy grounded in clear investment themes or focused on specific sectors. But while PE funds want to double the capital earmarked for investments in India. and what goods and services will these newly enfranchised consumers demand? • How have regulatory and legal developments made the US and Europe unappealling and to what extent will PE in Asia benefit? • What is the long-term forecast for PE in China and India taking into consideration economic stability and continuing growth? 15:45 Networking coffee break . • How can PE make a return when private investment in the education sector is seen traditionally in the form of not-for-profit trusts? • What business models exist that make healthcare profitable. 1 December 2011 08:00 08:50 09:00 09:30 Registration and refreshments Welcome address Opening keynote address how can private equity firms position themselves as industry experts that create value and alpha? It is safe to say that private equity is now an integral feature of India’s business landscape. in early 2008 it witnessed a significant correction. It is also imperative for fund managers to deepen their relationships with promoters and other intermediaries to ensure that they will be the partner of choice in the most attractive deals. The opportunity for big wins is evident as it is estimated there will be a demand for at least 30m homes by 2012 to meet the existing housing need and RE firms are turning to PE for investment to pay for land. China: how Asia’s giants square up At a time when Dodd-Frank is raising the compliance burden for operating funds in the US. • What are the typical multiples across sectors and the growth expectations underlying them? • To what extent is the central government of each country controlling growth? What sectors are favoured for foreign investment? • What are the risks and benefits of dealing with regional governments? • What effect do policies that direct money to the lower-income segments of society have. has been on a roller coaster ride for the last several years.

the secondary market—in which PE firms sell their assets in a company to another PE firm—has had a surge of activity in India in recent years. Experienced PE professionals that have performed successful exits in the last two years will discuss how they managed to source lucrative exits with the desired return. such as hydropower generation or smaller tech innovation deals? • Can the Indian intellectual property regime protect the interests of overseas partners and is this a concern for LPs? • In a market swamped with clean tech ‘flavour of the month’ investment opportunities. These deals offer LPs an early route to liquidity and PE firms a solution to either finding an exit or an investment. In the past. but many have deferred plans this year because of a poorly performing stock market. • How were the industry benchmark exits of the last two years sourced and executed? • Will PE firms have to lower their own expectation on percentage returns to facilitate exits? • Do the current tax controversies concerning India-Mauritius tax treaty have an impact on the exits by PE funds? • What strategy is best to apply and is it industry specific? • Is current regulatory framework conducive to facilitate exits at commercially negotiated valuations between the parties? • Do you build exit guarantees into long-term contracts—can LPs make IPOs enforceable? 11:00 11:30 Networking coffee break PE investing in hard Infrastructure—a journey from initial ground-breaking to lucrative returns Infrastructure is set to be one of the biggest gainers of private equity (PE) investments in India in 2011. acquiring permits. include finding a domestic workforce with the expertise to handle mega projects. 2 December 2011 08:30 09:00 09:30 10:00 Registration and refreshments Opening remarks keynote address Finding a lucrative route to exit Nearly 800 deals made through 2007. Seasoned practitioners with experience in deal making in the secondary market will discuss: • Where do investors see the opportunities for secondary funds in the coming months and years? • Is an active secondary market in India seen as a good addition or as a necessity? • How important is a liquid secondary market to encouraging LPs to enter the Indian PE market? • What are the mechanisms for sourcing. complex land availability and allocation procedures and the range-bound nature of returns that may not be attractive to non long-term yield investors. LPs are eager to see a return. can PE take on construction risk and deliver PE returns on the back of it? • What are the major challenges to infrastructure investment in India—corruption. there were eight secondary PE deals worth $93. Our panellists will reflect on their experiences as infrastructure investors and the challenges faced along the way. PE firms have typically selected the IPO route to liquidity. tax issues that can substantially impede the return. In 2009. rising oil prices and mounting concern over carbon emissions have led to growing interest in investment opportunities in clean-tech companies among Indian investors.17m in India. with fund managers expecting investment in the sector to grow at 25-50% over the next 6-12 months. regional or country fund managers? 15:00 Conference concludes .49m. investors are finding backing of clean technology or renewable energy companies a dogged quest as the dearth of sound opportunities makes good deals few and far between. But despite the current buzz and notion that this is a largely untapped market. Venture capital and private equity funds invested $816m in 32 green firms in fiscal year 2011 as favourable changes in regulations and tax incentives and the introduction of government initiatives to promote green energy raised interest in the sector.18m in 2010. managing resources and the balance sheet • Examples of how infrastructure investors have overcome these challenges to advance the project and adhere to regulatory compliance without compromising budgets and safety standards • What are the next big infrastructure opportunities domestically? • How does the landscape change when LP investors in PE funds exercise the co-investment option where they invoke the right to invest along with the fund manager? 12:15 Growing interest and opportunities for investing in clean technology and renewable energy Factors such as increasing population. • Looking for bigger bite-sized investments. executing and closing secondary private equity transactions? 17:00 17:30 17:35 19:00 keynote address End of day 1 Cocktail reception Gala dinner and awards ceremony Friday. But big challenges still remain and besides project financing.PROGRAMME 16:15 Taking advantage of the booming secondaries market As the option to exit through IPOs dwindles and the lack of opportunities for leveraged buy-outs persists. Experienced ‘green’ investors will debate the following: • What option makes sense for PE investment: companies that adopt technologies or models and implement them locally. what processes can you employ to cut through the bad investments and find the real deal? 13:00 14:00 Networking lunch LPs’ Appetite for investment in India • • • • Where do LPs place India on their risk/reward scale? Are LPs scrutinising the 06/07 PE transactions to evaluate investment potential? Are fund managers and their longevity in a firm a deciding factor for LPs on whether or not they will invest? Will corporate governance issues and the recent high profile press coverage the subject has received be detrimental to overseas PE investment in India? • How long are LPs willing to wait for an investment to mature before it is ripe for exit? • Do LPs prefer global. Thus far in 2011 there have been seven such deals worth $240. Thus. with an investment value of about $15bn in PE fund portfolios are expected to seek exits in 2011. Companies in this cluster are not scaling up or maturing fast enough to absorb large amounts of capital and offer returns. PE firms are looking for new avenues to exit because of the issues of getting the right price (20-25% ROI) and achieving the desired multiples. The benchmark Sensex index of the Bombay Stock Exchange has shed 10% since the beginning of 2011. increasing to 23 such deals worth $201. regulatory complexities that can cause major delays. land acquisition.

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