ANNUAL REPORT 2018

AVCAL.COM.AU

CONTENTS

INTRODUCTION 03

AVCAL MEMBERS 04

AVCAL BOARD OF DIRECTORS 05

CHAIRMAN & DEPUTY CHAIRMAN’S MESSAGE 07

CHIEF EXECUTIVE’S MESSAGE 11

AVCAL AT A GLANCE 13

POLICY & ADVOCACY 14

AVCAL MEDIA COVERAGE 20

RESEARCH PUBLICATIONS 21

DIVERSITY & INCLUSION 22

INDUSTRY AWARDS 23

AVCAL IN THE COMMUNITY 24

INDUSTRY EVENTS 28

STAKEHOLDER ENGAGEMENT 32

CODE OF CONDUCT 34

COMMITTEES & WORKING GROUPS 35

CONCISE FINANCIAL REPORT 37BUILDING BETTER BUSINESSES

POLICY & ADVOCACYCONNECTED COMMUNITYINVESTOR ENGAGEMENT

OUR STRATEGIC PILLARS

INTRODUCTION

AVCAL’s members comprise most of the active private equity and venture capital firms in Australia, as well as the institutional investors into the industry. These firms provide capital for early stage companies, later stage expansion capital, and capital for management buyouts of established companies.

AVCAL MEMBERS BUILD BETTER BUSINESSES

The investment model used by the private equity and venture capital industry supports the building of stronger businesses that can deliver sustainable increases in enterprise value over the long-term.

AVCAL’S CORE OBJECTIVE

To ensure the business community and other key stakeholders understand the benefits of the private capital model of business ownership, and the role it can play in contributing to investment and employment growth across the Australian economy.

THE AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED (AVCAL) IS A NATIONAL ASSOCIATION WHICH REPRESENTS THE PRIVATE EQUITY AND VENTURE CAPITAL INVESTMENT INDUSTRY.

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3 Oceans Capital

ABVCAP

Accretion Investment Management Pty Ltd

Acer Capital Pty Ltd

Adamantem Capital

Addisons

ADVANCY

Advent Partners

Alium Capital

Allegro Funds

Allen & Overy

Allens

Allier Capital

Anacacia Capital

Anchorage Capital Partners Pty Ltd

ANU Connect Ventures Pty Ltd

ANZ

Aon Risk Solutions

Archer Capital

Arnold Bloch Leibler

ASF Capital Pty Ltd

Asia Principal Capital

Atlas Advisors Australia

Austrade

Australian Executor Trustees Limited

Australian Stock Exchange Ltd

AustralianSuper

Australim Ventures

Bain Capital Asia, LLC

Besen P/L

Bioscience Managers Pty Ltd

Blackbird Ventures

Blue Ridge Partners

Blue Sky Private Equity Ltd

Blue Sky Venture Capital

BMY Group Pty Ltd

Boab Capital Group

Brandon Capital Partners

Bridgeport Capital

BVCA

Cambridge Associates

Campbell Lutyens

Carthona Capital

Cbus

Challenger Investment Partners

CHAMP Private Equity

Chatsworth Associates Pty Ltd

Citco Fund Services (Australia) Pty Ltd

Citigroup Australia Pty Limited

Clayton Utz

Clean Energy Finance Corporation

Coast2Coast Capital

Coca-Cola Amatil

Commonwealth Bank of Australia

Commonwealth Superannuation Corporation

Continuity Capital Partners Pty Limited

Corrs Chambers Westgarth

Credit Agricole CIB Australia Limited

Credit Suisse Management (Australia) Pty Ltd

Crescent Capital Partners

CSIRO

Deakin University

Deloitte Corporate Finance

Department of Economic Development, Jobs, Transport and Resources

Department of Industry, Innovation and Science

Deutsche Bank AG

DLA Piper

Duff & Phelps

Elev8 Venture Management, I.L.P.

Ellerston Ventures

Emil Ford Lawyers

EMPEA

Estrala Capital & Advisory Pty Ltd

Evolve Private Capital Pty Ltd

EY

First Guardian Capital Pty Ltd

Future Asset Management International Limited

Future Fund

Galvin Group

Giant Leap Fund

Gilbert + Tobin

GLG

Goldman Sachs Australia Pty Ltd

Grant Thornton Australia Limited

GreenMount Australia Pty Ltd

Greenstone Partners Pty Limited

Greenwich Capital Partners

Greenwoods & Herbert Smith Freehills

Hamilton Lane

Hampton Capital

Harbert Management Corporation

HarbourVest Partners (Asia) Limited

Herbert Smith Freehills

HESTA

HLB Mann Judd Corporate (NSW) Pty Ltd

Hogan Lovells

Holding Redlich

Hostplus

Houlihan Lokey

IAG Firemark Ventures

IFM Investors

InterFinancial Corporate Finance Limited

Intermediate Capital Managers Australia

Invest Europe

Investec Australia Limited

Ipreo

iQX Investment Services Pty Ltd

Johnson Winter & Slattery

Jones Day

Kain Lawyers Pty Limited

Kestrel Capital Pty Ltd

King & Wood Mallesons

KKR Australia Pty Limited

KPMG

L Catterton

L.E.K. Consulting

LGT Capital Partners Ltd

Liverpool Partners

Livingbridge Aus Pty Ltd

Luminis Partners

M.H. Carnegie & Co.

Macquarie Group Services Australia

Mayne Wetherell

McGrathNicol

Mercury Capital

Metrics Credit Partners

Miles Advisory Partners Pty Limited

Minter Ellison Lawyers

Mizuho Bank Limited

MLC Investment Management - MLC Private Equity

Moelis Australia

Monash University

MVision Private Equity Advisers Ltd

National Australia Bank

Natixis Australia Pty Ltd

Navis Capital Partners

New Zealand Trade & Enterprise

Next Capital Pty Limited

Nikko Asset Management Australia

Norton Rose Fulbright Australia

NZVCA

Odyssey Private Equity

One Investment Group

OneVentures Pty Ltd

OPTrust

Pacific Equity Partners

Pacific Road Capital Management Pty Limited

Partners for Growth

Partners Group

Partners Group

Paspalis Innovation Investment Fund

Phillip Asset Management Limited

Preqin

PwC

QIC Limited

Quadrant Private Equity Pty Limited

Qutbluebox Pty Ltd

Real Asset Management Pty Ltd

Record Point

Reinventure Group Pty Ltd

REMONDIS Australia

Risk Capital Advisors

ROC Partners

Rothschild Australia Limited

Royal Bank of Canada

Russell Reynolds Associates

S&P Global Market Intelligence

SAP Australia Pty Ltd

Scale Investors Ltd.

Sino Venture Management, I.L.P.

Social Ventures Australia

Southern Cross Venture Partners Pty Ltd

Southmore Capital

St Baker Energy Innovation Fund

Stafford Capital Partners

Standish Management

StepStone

SunSuper

Talbot Sayer Lawyers

TDVC Pty Ltd

Telstra Ventures Pty Ltd

Tempus Partners

The Department for Industry and Skills

The Riverside Company

Thomson Geer

Thomson Reuters

Top Tier Capital

Torrens Capital

Trident Debt Capital Advisors

Trimantium Capital

Tyche Asset Management Pty Ltd

UBS Investment Bank

Vantage Asset Management Pty Limited

Wattle Hill Capital

Western Investments Venture Capital Fund Pty Ltd

Westpac Banking Corporation

Wilshire Australia Pty Ltd

Workplace Giving Australia

Yamaha Motor Ventures & Laboratory

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AVCAL MEMBERSCurrent members as at September 2018 AVCAL BOARD

OF DIRECTORSCAMERON BLANKS, Chairman, AVCAL Managing Director, Pacific Equity Partners

ANDREW MAJOR, Deputy Chairman, AVCAL General Manager – Unlisted Assets, HESTA

ANNE-MARIE BIRKILL, Managing Partner, One Ventures

BRYAN ZEKULICH, Company Secretary & Treasurer, AVCAL Private Equity Area Leader, EY

CHESTER MOYNIHAN, Founding Partner, Allegro Funds

CHRISTOPHER COATES, Investment Director, Quadrant Private Equity

FIONA LOCK, Managing Director, CHAMP Private Equity

FRANK HECKES, Partner, Archer Capital

GARETH WOODBRIDGE, Principal, KKR Australia

MELISSA WIDNER, General Partner, NAB Ventures

MICHAEL LUKIN, Managing Director, ROC Partners

NATHAN CAHILL, Partner, Minter Ellison

RUSSELL SINCLAIR, Executive Director, Head of Loan Syndications & Acquisition Finance, Westpac

STEPHEN THOMPSON, Managing Director, Brandon Capital Partners

TIM MARTIN, Private Equity Investment Professional

THE AVCAL BOARD IS MADE UP OF 15 INDUSTRY PARTICIPANTS FROM PRIVATE EQUITY, VENTURE CAPITAL, INVESTOR AND CORPORATE SECTORS.

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CHAIRMAN & DEPUTY CHAIRMAN’S MESSAGE

BUILDING FOR THE FUTURE

2018 has once again been a busy year for AVCAL and the Board. It’s been a year focussed on defining our future, and the organisation’s role within it.

We have spent significant time ensuring we look ahead to position AVCAL so we can best serve the industry for the next decade and beyond. A major focus for us at a Board level has been to work with other members and the AVCAL team to review and realign our organisational strategy – making sure we are fit for a rapidly changing and dynamic future.

This year also marked an important milestone in the context of the industry’s annual conference, celebrating 25 years of bringing together the people who make up our professional investment community – the fund managers, the investors and the advisors. We took the opportunity as part of this year’s conference to recognise not only the recent successes of our industry, but also to look back at some of the major achievements in private capital investing over the last 25 years.

We have released significant new research providing greater insight into our industry, set benchmarks to strengthen compliance and inclusion, and continued to engage across a wide range of stakeholders to represent the interests of the sector on various policy and regulatory reforms.

Significant time has been spent ensuring we look ahead to position AVCAL to best serve the industry for the next decade and beyond.

CHANGE AND EVOLUTION TODAY

At both a global and domestic level, our industry is evolving. The traditional definitions between private equity, venture capital, and investors, have changed. It’s commonplace now to view the industry as being about private capital investment, featuring new business models, funding sources and differentiated strategies within the asset class emerging. We recognise the need to become more accessible to our members and more visible to the wider business sector and community.

The diversity of the private capital ecosystem means our individual members seek different experiences. Understanding their specific goals, their preferences around engagement and participation, and their needs from membership, enables us to continue improving our member value proposition, through research, insights, advocacy and relationships. Our realigned strategy recognises the different objectives and drivers of value for our members, while also delivering a unified voice on behalf of us all to deliver effective change.

AVCAL’s strategy is based on four key drivers that support our goal to champion a bolder future for Australia’s private capital investment sector.

This begins with equipping our members with the insights and data they need to achieve their own aspirations. It involves taking the lead and proactively shaping policies that benefit our members, our economy and broader society. We must connect with our members and beyond, facilitating relationships that help them thrive. Finally, our organisation needs to deliver these changes through significant and extensive use of digital tools that make it easier for all of us to engage in our own way, in our own time.

The new AVCAL strategy builds on these themes and clearly articulates the role of the industry body for the future. Core to the strength of what we do however remains an unwavering focus on our policy and advocacy work on behalf of the industry – that hasn’t changed. In fact, the new strategy helps to further build on that core focus into the future.

Pictured left to right CAMERON BLANKS & ANDREW MAJOR

CHAIRMAN & DEPUTY CHAIRMAN’S MESSAGE

CAMERON HAS PLAYED AN INSTRUMENTAL ROLE AS BOARD CHAIR OVER THE PAST TWO YEARS.ANDREW MAJORGeneral Manager – Unlisted Assets, HESTA

AVCAL’S STRATEGY IS BASED ON FOUR KEY DRIVERS THAT SUPPORT OUR GOAL TO CHAMPION A BOLDER FUTURE FOR AUSTRALIA’S PRIVATE CAPITAL INVESTMENT SECTOR.

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WE LOOK FORWARD TO THE NEXT 25 YEARS.

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A NEW BRAND, A NEW MODEL

In recent months we have also shared with members some exciting news about our plans for the future.

In 2019, AVCAL will transform. We will become the Australian Investment Council.

This is more than a change of name – it is a core component of how we will strengthen our relevance and inclusiveness. The change represents a new approach to how we engage with our diverse membership base, while at the same time refreshing our capacity to connect with business and government.

The Australian Investment Council embodies a much greater and more prominent focus on what we do, not who we are. We feel the new brand emphasises the breadth and depth of the private capital investment sector in our market. It also more deliberately reflects the role we all play in contributing to the strength and growth of our economy and new jobs.

At a Board level, we have also been taking steps over recent years to ensure there is appropriate balance between all of the various segments of the Association’s membership.

Over the year ahead, we will continue to work closely with AVCAL’s Chief Executive, Yasser El-Ansary, to lead the organisation through these big changes, and build a stronger platform for private capital investment in Australia.

MOMENTUM SUPPORTING DIVERSITY CONTINUES TO ACCELERATE

In September 2018, we launched a new report, Women in Private Capital: The Case for Change, which created the first ever benchmark of women’s representation across our industry here in Australia. The report shows that considerable progress has been made over the past few years in bringing about greater gender diversity across our sector, but significant change is still needed across all parts of our ecosystem.

A growing body of research links gender diversity with superior business performance, greater innovation and stronger employee engagement. Across the industry, female representation within the investment professionals in our firms comprises around 20%, which while low in absolute terms, is a big step forward from where we were a few years ago, when the equivalent number was around 5%.

We have continued to strengthen the regulatory framework for our industry and taken an increasingly active role in setting high governance standards. From June 2018, members were required for the first time to annually certify their compliance with our updated Code of Conduct or report any departures on an ‘if not, why not’ basis.

These changes are part of AVCAL’s commitment to improve standards of transparency and accountability in line with global best practice and increasing community expectations.

RECOGNISING THE HISTORY, CAPITALISING ON THE OPPORTUNITY

We took the opportunity at the end of our annual conference in September this year to celebrate the 2018 AVCAL Awards. The awards recognise the significant achievements of our leaders and the business investments across the industry. Because of the special milestone of our 25th anniversary conference this year, we also took a moment to acknowledge and celebrate a number of individuals who have made outstanding contributions to the industry over the past quarter of a century. All of our award winners are acknowledged in this Annual Report, on page 23. Congratulations again to the winners.

We are both very much looking forward to 2019, especially the roll-out of our new strategy and new Australian Investment Council brand.

It has been a privilege to serve you, our members, on the AVCAL Board over the past 12 months, and to have been able to make a contribution to positioning our dynamic industry for the future. We’re grateful for the ongoing support and dedication of our fellow Board Directors, the AVCAL team, as well as all of our members, corporate partners and other collaborators – thank you for your considerable efforts.

We look forward to the next 25 years.

CAMERON BLANKSManaging Director, Pacific Equity Partners and AVCAL Chairman

ANDREW MAJORGeneral Manager, Unlisted Assets, HESTA and AVCAL Deputy Chairman

CHAIRMAN & DEPUTY CHAIRMAN’S MESSAGE

AS AVCAL’S RECENTLY APPOINTED DEPUTY CHAIR, ANDREW MAJOR IS THE FIRST APPOINTMENT TO THE ROLE TO COME FROM THE INVESTOR COMMUNITY, REFLECTING THE DIVERSITY OF OUR CONSTITUENCY.CAMERON BLANKSManaging Director, Pacific Equity Partners

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CHIEF EXECUTIVE’S MESSAGE

A BUSY WORK PROGRAM

We don’t do things by half at AVCAL. This year we have taken on some big – and very important – initiatives that we firmly believe will help to position the organisation as a major thought leader and contributor to Australia’s business sector well into the future.

The work we have done with the Board to help re-set the organisation’s strategy, and the development of the exciting new Australian Investment Council brand, have formed the foundations for other major projects that all connect back to improving the breadth and depth of engagement we have with all of you, our members.

A NEW PERSONALISED DIGITAL EXPERIENCE FOR OUR MEMBERS

The hard-working and dedicated team of professionals that I lead at AVCAL has been focussed for many months now on planning for the roll-out of a significantly enhanced digital presence for the industry, which will be underpinned by a more sophisticated customer relationship management platform. Members will experience the benefits of a more personalised experience in their interactions with the Australian Investment Council next year, as part of the roll-out of the new brand and a range of new products across the industry.

We are investing heavily in strengthening our capacity to engage members, and other stakeholders outside the industry, through online community discussion forums and increased use of digital video and multimedia content. We know that time pressures make it hard to stay up to date using more traditional communication channels, so we are taking a fresh approach to putting relevant and timely information into your hands to keep you updated on our work.

The creation of the new brand, Australian Investment Council has formed the foundations for many other major projects that connect back to improving the depth of member engagement.

REPRESENTING THE INDUSTRY ON THE BIG ISSUES

Our extensive program of policy and advocacy work with the government continued to deliver important and tangible outcomes for the industry over the past year. AVCAL’s recent work to build strong and meaningful relationships with government and regulators helps to ensure that key issues relevant to our sector can be canvassed in an open and constructive dialogue when circumstances dictate.

That was especially evident in the work we have done this year to ensure that ASIC’s Regulatory Guide 97 project maintains a stable environment for investors into private capital, and that the government’s tightening of changes to the R&D tax incentive do not inadvertently disrupt the investment of capital into fast-growth early-stage businesses that will propel our economy into the future.

HARNESSING THE STRENGTH OF OUR GLOBAL NETWORK

I was especially proud this year to host around 30 of my counterparts from other private capital industry and trade associations from all over the world for two days of meetings in Sydney. The network of industry bodies, the Global Private Equity and Venture Capital Congress, forms the basis for a powerful collaboration between us on the big issues confronting the private capital sector globally. Using the weight of that influence to advocate on major issues such as international taxation and regulation is vitally important.

The 2018 Sydney meeting was an important ingredient in strengthening that collaboration across key markets such as Britain, the United States of America, Japan, Hong Kong and India – just to name a few.

OUR EXTENSIVE PROGRAM OF POLICY AND ADVOCACY WORK WITH THE GOVERNMENT CONTINUED TO DELIVER IMPORTANT AND TANGIBLE OUTCOMES FOR THE INDUSTRY.YASSER EL-ANSARYChief Executive

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Some of the marquee industry events we delivered to members this year have been a tremendous success, and much of the credit for that success can be attributed to a number of our members who devote time outside of their normal position to play a lead role in delivering unique insights into key investment trends and opportunities relevant to our sector. Without the support of the people who make time to do that, we simply wouldn’t be able to deliver the high quality products to our members that we do.

The completion this year of the latest update to the Deloitte Access Economics report into the contribution of private capital investment to economic output and new job creation is another example of how vital it is that we analyse and share information about the impact of our industry in the market. Whichever way you look at it, the contribution of private capital to the Australian economy is significant:

— Private equity backed businesses contributed $43 billion in total value added to the Australian economy – equal to 2.6% of Australian GDP in FY2016;

— 327,000 FTE jobs (172,000 directly and 155,000 indirectly) were supported by PE backed businesses;

— Private equity backed businesses added almost 20,000 FTE jobs, accounting for 11% of total Australian employment growth in FY2016;

— PE backed businesses typically delivered annual revenue growth of 20%, while boosting the size of their workforce by 24% in FY2016;

— More than 85% of private equity businesses introduced some type of process or product innovation in FY2016, far greater than the average profile of non PE backed businesses.

DATA SUPPORTING THE INCREASE IN GENDER DIVERSITY ACROSS PRIVATE CAPITAL

I am also buoyed by the release of the Women in Private Capital report, with results showing that the number of women in our industry has increased from 18 in 2014 to 161 in 2018. The more recent data incorporates investment professionals across not only private equity and venture firms, but also those in key roles within our institutional investor community. Firms are constantly evolving and improving their approach to fostering greater gender diversity through changes to organisational culture and policies which seek to both attract and retain their best and brightest talent – female and male. I think the future for the industry is very bright in this area of our work. I believe the progress we have made so far is a prelude to the significant leaps forward we can continue to make over coming years.

Next year will be another busy year for us all at AVCAL. The change in brand we will roll-out in the first quarter of 2019 will give us the platform to build a stronger and more member-centric framework around everything we do across the industry. I’m really looking forward to working alongside the AVCAL team, as well as our incoming Board Chair, Andrew Major, and the rest of the Board to make that change a reality. I want to also take the opportunity to thank our Board Chair for the past two years, Cameron Blanks, for the support and guidance he has given to me in carrying our work on behalf of the industry – it’s a credit to the industry to have leaders like Cameron taking on such an important stewardship role on behalf of the sector.

YASSER EL-ANSARYChief Executive

CHIEF EXECUTIVE’S MESSAGE

AVCAL AT A GLANCE

199 THE NUMBER OF MEMBERS OF AVCAL AT SEPTEMBER 2018

19 THE NUMBER OF EVENTS THAT HAVE CONNECTED OUR COMMUNITY IN 2018

23 PAIRS OF MENTORS AND MENTEES TAKING PART IN THE INDUSTRY’S MENTORING PROGRAM IN 2018

19 THE NUMBER OF SUBMISSIONS MADE TO GOVERNMENT ADVOCATING FOR OUR INDUSTRY

$5.4B NEW CAPITAL COMMITMENTS FROM JAN – SEPT 2018

40% INCREASE IN ATTENDANCE ON 2017 BUILDING BETTER BUSINESSES GALA DINNER

377 GUESTS AT THE BUILDING BETTER BUSINESSES GALA DINNER

8 AVERAGE NUMBER OF MEETINGS WITH GOVERNMENT PER MONTH

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POLICY & ADVOCACYAVCAL has continued to be the leading advocate for the industry on a wide range of key policy and regulatory reforms, through dialogue and representation with politicians, policymakers, regulators and other stakeholders.

Some of the major issues advanced by AVCAL throughout the past year include:

ONEASIC REGULATORY GUIDE 97 – FEE AND COST DISCLOSURE BY SUPER FUNDS

In July of this year, ASIC published the Review of ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements. This report came out of an independent expert review of ASIC’s RG97 approach to cost and fee disclosure for superannuation funds and registered schemes, in response to pressure from the investment sector in respect of the potential inconsistency of outcomes from application of the new disclosure regime. AVCAL, alongside a wide range of industry bodies across the investment sector, has been extensively involved in ASIC’s work in this area for many years.

During the review process, AVCAL worked closely with the LP Advisory Committee to make representations to the review, and a number of the key issues raised have been taken into account by the independent expert. The report set out a number of recommendations for ASIC to consider in implementing the regulatory guide and addressing industry concerns raised through the review, including how performance fees and transactional and operational costs should be classified.

A further ASIC-led consultation, expected to take place either at the end of 2018 or early 2019, will provide an opportunity for AVCAL to continue to advocate on behalf of the industry on this issue.

TWORESEARCH & DEVELOPMENT TAX INCENTIVE

AVCAL has been a leading voice to government in relation to the implementation of changes arising from the 2016 review into the R&D Tax Incentive scheme completed by Ferris Finkel and Fraser. During the past year, AVCAL participated in formal and informal consultation processes in respect of the government’s reforms in this area, which were announced as part of the 2018-19 Federal Budget in May. The reforms adopted by the government align closely with AVCAL’s consistent position over the past 18 months – the introduction of a $4m cap on the refundable component of the program, as well as a specific carve-out for clinical trials in the healthcare sector.

Extensive representations were made by AVCAL during the development of the government’s legislation in this area, with a focus on broadening the definition of ‘clinical trials’, and ensuring that all costs related to conducting clinical trials are included in the carve-out. Subsequently, legislation was introduced into Parliament in September which saw the clinical trial carve-out broadened to include treatments such as vaccines and medical devices.

In October, the Senate referred the provisions of the Bill to the Economics Legislation Committee for inquiry. AVCAL reiterated to the Committee the industry’s position on this crucial incentive program for innovation.

THREEPRODUCTIVITY COMMISSION REVIEW INTO THE COMPETITIVENESS AND EFFICIENCY OF THE SUPER SYSTEM

AVCAL continues to closely monitor the work of the Productivity Commission into assessing the efficiency and competitiveness of the superannuation system. In May 2018, the Commission published its draft report with a number of recommendations, including the creation of a “best-in-show” shortlist of up to 10 superannuation products for new members, and the recommendation of a single-page product dashboard for all super products.

In collaboration with AVCAL super fund members, a submission was put forward in response to a number of specific draft report recommendations, emphasising the importance of reforms that drive improvements to superannuation fund investment strategies which deliver benefits to fund members.

The Productivity Commission’s final report is expected to be released in late December 2018.

FOURPARLIAMENTARY INQUIRY INTO IMPEDIMENTS TO BUSINESS INVESTMENT

AVCAL appeared before the House of Representatives Standing Committee on Economics public hearing in July as part of its inquiry into impediments to business investment.

The key position articulated as part of the inquiry was to share insights into how the private capital investment industry can play a lead role in addressing the economic challenge of lower than expected levels of business investment, and the steps government can take in order to assist in overcoming investment barriers.

AVCAL’s recommendations included the effect of foreign investment and superannuation regulatory frameworks, the role of innovation policy, and the impact of tax policy on business investment levels.

FIVEASIC CONSULTATION PAPER 301: FOREIGN FINANCIAL SERVICE PROVIDERS

ASIC released a consultation paper in June that proposed adopting a modified licensing regime for foreign entities that provide financial services to wholesale clients, which was proposed to include foreign entities that manage wholesale funds (such as offshore PE and VC funds).

AVCAL participated in the consultation process co-ordinated by ASIC on this change, and argued the case against the introduction of such changes that would ultimately have the effect of dampening the capacity for our largest domestic investors to deploy capital globally.

In September, ASIC extended the licensing relief for foreign financial services providers to 30 September 2019, allowing them to continue to provide services to Australian wholesale clients without needing to hold an AFSL.

AVCAL has continued to be a key advocate for targeted reforms across the corporate and taxation law arena to help facilitate the growth and expansion of this important and fast-moving segment of the financial services sector.

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

AVCAL HAS BEEN A LEADING VOICE TO GOVERNMENT IN RELATION TO THE IMPLEMENTATION OF CHANGES ARISING FROM THE 2016 REVIEW INTO THE R&D TAX INCENTIVE SCHEME COMPLETED BY FERRIS FINKEL AND FRASER.

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SEVEN FINTECH AMENDMENTS

A number of important legislative advances have been made over the year regarding Australia’s growing fintech sector. Legislation allowing Early Stage Venture Capital Limited Partnerships and Venture Capital Limited Partnerships to make investments into fintech startups passed both Houses of Parliament in September 2018.

Separately, other legislation brought forward by the government will be adopted to enhance the currently available fintech regulatory sandbox, allowing more businesses to test a wider range of new financial and credit products and services without a licence from ASIC, for a longer time.

AVCAL has continued to be a key advocate for targeted reforms across the corporate and taxation law arena to help facilitate the growth and expansion of this important and fast-moving segment of the financial services sector.

EIGHTWIDENING OF THE DEFINITION OF SIGNIFICANT GLOBAL ENTITIES

Following on from an announcement made in the 2018-19 Federal Budget, Treasury released exposure draft legislation in the middle of the year which extended the definition of the concept of a ‘significant global entity’.

The more expansive definition has the potential to bring within scope the investment activities of PE funds, which could have the effect of introducing extensive new compliance and reporting obligations for member firms.

AVCAL, with the Legal & Tax Working Group, has been an active participant in the consultation process around these reforms, which continues to be the subject of further review through the legislative process.

SIXFOREIGN INFLUENCE BILL

In January 2018, AVCAL collaborated with a number of other industry bodies such as the Australian Banking Association and the Financial Services Council in responding to legislation establishing the Foreign Influence Transparency Scheme.

The new regime requires persons undertaking certain activities on behalf of a foreign principal to register and provide information about those activities to the Australian government.

AVCAL played a lead role alongside the other industry bodies in advocating the case for industry associations to be excluded from compliance with the regime, and ultimately the government’s Foreign Influence Transparency Scheme legislation 2018 did incorporate an exemption for industry representative bodies from being subject to the new scheme.

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POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

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“GETTING OUT TO THE BUSINESSES” CAMPAIGN In conjunction with the publication of the report detailing the economic contribution of the private equity investment industry to Australia, AVCAL continued to roll out its structured program of portfolio company site visits by Federal Members of Parliament across Australia.

Over the past few months, two site visits have been completed showcasing the important economic impact for the community from private equity investment driving growth of local Australian businesses and new job creation.

During the year, the Hon Ed Music MP (Shadow Minister for the Digital Economy, and Member for Chifley) toured the

Mount Druitt, Sydney facility of leading building products supplier Big River Group. The company manufactures and distributes timber and building products across Australia, and is backed by AVCAL PE member firm Anacacia Capital.

The second site visit saw The Hon Craig Laundy MP (then Minister for Small and Family Business, the Workplace and Deregulation, and Member for Reid) meet with the team at the Redleaf Manor in Concord, Sydney, an aged care facility run by the Allity Group, a leading Australian-based residential aged care provider backed by Archer Capital.

THE ECONOMIC CONTRIBUTION OF PRIVATE EQUITY IN AUSTRALIA This year, AVCAL launched the Private Equity: Growth and Innovation commissioned economic research report prepared by Deloitte Access Economics.

The latest report updates the previous 2013 study (also completed by Deloitte Access Economics) measuring the economic contribution of private equity investment in Australia.

The extensive economic analysis confirmed the valuable contribution that the PE industry makes to the growth, employment creation and innovation scorecard for Australia’s economy. Some of the specific findings included:

— In FY2016, private equity backed businesses contributed $43 billion in total value added to the Australian economy – equal to 2.6% of Australia’s national Gross Domestic Product;

— PE-backed businesses supported 327,000 FTE jobs (172,000 directly, and 155,000 indirectly) across a wide range of industry sectors;

— In FY2016, private equity-backed businesses added almost 20,000 full-time equivalent jobs, accounting for 11% of total Australian employment growth in FY2016;

— Investee businesses backed by the industry typically delivered annual revenue growth of 20%, while boosting the size of their workforce by 24%;

— More than 85% of private equity-backed businesses introduced some type of process or product innovation in FY2016, far greater than the average profile of non-PE backed businesses across the economy.

The findings from the Deloitte Access Economics analysis are used by AVCAL as part of the organisation’s advocacy work with government and regulators, and form part of the organisation’s external communication and messaging campaigns.

OUR PARTNERSHIP WITH PREQIN During 2018, AVCAL entered into a new data partnership with global alternative assets data and intelligence provider Preqin.

This new partnership provides AVCAL and members with access to world-class data and research capabilities, leveraging Preqin’s international database covering more than 7,500 LPs and 15,000 GPs across 90+ markets around the world. Additionally, the new partnership delivers other benefits to members through access to bespoke reports and discounted subscription packages.

Preqin’s database delivers comprehensive coverage of PE and VC activity in the Australian market, which is a core feature of the new data partnership between the two organisations. For Australian-based reporting, Preqin’s data will be supplemented with AVCAL’s own proprietary intelligence and data sources, to ensure a complete and comprehensive picture of private capital investment activity across the domestic marketplace.

This new partnership with Preqin will assist AVCAL’s capacity to develop other reports and analysis of Australian private capital investment activity against regional and international benchmarks, which is increasingly important to all members raising capital from offshore investors across the world.

Partnering with a leading global data provider such as Preqin allows AVCAL to continue delivering to members strategically important initiatives that help to support the ongoing growth of the private capital investment industry in Australia into the future.

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

$43VALUE ADDED TO THE AUSTRALIAN ECONOMY BY PRIVATE EQUITY BACKED BUSINESSES

BILLION

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AVCAL MEDIA COVERAGE

During the past year, AVCAL has continued to feature in a wide range of external communication channels through adoption of a strategically targeted approach to key messages and audiences.

This past year has seen a greater focus on financial services trade publications, as a key mechanism through which the industry’s key messages and position on industry-specific policy and regulatory reforms can be shared with influential audiences across the institutional investor segment. Mainstream media channels remain an important part of the organisation’s strategy for broader, business-focussed key messages on core issues relevant to the growth and evolution of the industry.

During 2018 AVCAL has put forward a number of opinion editorial content pieces for leading trade publications such as Investment Magazine. Some of the topics covered this year have included the role of secondary transactions in portfolios, domestic and international investment strategies by superannuation funds, the impact of the government’s medical research future fund and the response to the Government’s Innovation and Science Australia’s 2030 strategy.

AVCAL continues to invest heavily in targeted communications that help to build greater knowledge and awareness of the role of private capital investment in growing the Australian economy and new job creation.

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

RESEARCH PUBLICATIONS

A HEALTHY INDUSTRY POWERS GROWTH ACROSS AUSTRALIA’S ECONOMY

Australia’s private equity and venture industry delivers exceptionally strong performance results for investors all over the world. But while the strong performance is well understood and documented through a variety of channels, the scale and benefits of private capital investment are often poorly understood by external audiences.

This gap in knowledge creates an opportunity for AVCAL to continue developing and sharing insights into the role and impact of the industry. The two major reports released during 2018 have helped to advance the industry’s work on the future strategy and the external identity and brand position of private equity and venture capital.

AVCAL RELEASED TWO MAJOR REPORTS DURING THE YEAR

The AVCAL-commissioned Deloitte Access Economics report, Private Equity: Growth and Innovation, helped to establish deeper understanding of the role of the industry and the contribution it makes to the Australian economy, while the ninth annual Deal Metrics Survey revealed the strong position of the industry in the context of investment deals completed and the forward pipeline.

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AVCAL HAS BEEN MENTIONED IN THE MEDIA THROUGH TRADE AND MAINSTREAM PRESS OVER THE PAST 12 MONTHS FROM OCTOBER 2017

168 TIMES

The Deal Metrics Survey detailed that while total deal value and number of transactions decreased in fiscal 2017, the average enterprise value of new PE transactions was one of the highest in the last five years.

AVCAL is working on the scope of the next phase of research projects on behalf of the industry, for release in 2019. Some of the new research will be completed in collaboration with AVCAL’s new global data partner, Preqin.

INDUSTRY LEADS INNOVATION

There is no doubt that innovation and technological change is driving considerable innovation and serving to reshape the way in which almost every industry operates.

AVCAL’s research shows that private equity and venture capital firms are leading this change by embracing innovation to build better businesses for the future.

More than 85% of PE investee portfolio companies introduced some type of innovation in fiscal 2016 – significantly more than non-PE backed businesses – according to the Deloitte Access Economics research.

It also found PE-backed companies were more likely to collaborate with others, such as related businesses, suppliers, competitors, consultants, or researchers, to unlock innovation opportunities. This type of innovation takes many broad forms including new operational processes, new marketing methods, new organisational/managerial processes, and new goods or services.

The research highlighted several case studies, such as the way AVCAL member firm Advent Partners helped FMCG business Gourmet Garden take to market an innovative new technology that allowed it to extend the shelf life of herbs while maintaining its taste and aroma – which has ultimately proven to be a recipe for success.

This type of research, and the case studies that bring to life the concepts, typify the underlying value that private capital investment brings to business growth, innovation, and the broader economy.

Just as importantly, the typical company backed by private capital outperformed the Australian average in terms of revenue growth, profit growth and workforce expansion.

This research helps us show the importance of the industry to creating new value across the economy, and has also helped to support key discussions and submissions put forward as part of AVCAL’s advocacy efforts with government.

THE DELOITTE ACCESS ECONOMICS REPORT FOUND FIRMS UNDER PRIVATE EQUITY OWNERSHIP IN AUSTRALIA ACCOUNTED FOR $43 BILLION IN TOTAL VALUE ADDED TO THE ECONOMY – EQUAL TO 2.6% OF GDP – AND SUPPORTED 327,000 FTE JOBS.

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DIVERSITY & INCLUSION

WOMEN IN PRIVATE CAPITAL – THE CASE FOR CHANGE STRENGTHENS FURTHER

At the 2018 Conference, AVCAL launched the first report benchmarking the level of gender diversity across the private capital investment sector in Australia.

The report, Women in Private Capital, presents a range of perspectives on the business case for change, citing global statistics in support of the value of enhanced gender diversity and inclusion across businesses and the investment sector specifically. The report also sets a broad range of recommendations for targeted strategies that firms can utilise to assist in both attracting female investment professionals into their firms and ensuring that the best and brightest talent can be supported and retained for the long-term.

As part of the development of the report, AVCAL established a framework against which the industry’s progress can continue to be measured into the future.

The progress made by the industry in bringing about change over the past few years has been significant. AVCAL first initiated a dedicated focus on promoting and supporting gender diversity across the industry in 2015, through the establishment of a Diversity Advisory Committee with the support of the AVCAL Board.

The Committee has developed and implemented a range of initiatives since its formation, including an industry-leading mentoring programme for emerging female leaders and enhanced engagement with candidate talent pools through tertiary post-graduate programmes and key recruitment consultants supporting the industry.

Increasing the participation of women in the private capital investment industry is a priority for AVCAL.

Building an open and inclusive industry where there is genuine diversity of thought, experience and approach is an essential ingredient in continuing to advance the role the sector plays in building better businesses and creating value for investors, business owners and their teams. In a globally competitive marketplace for investment, increased diversity has the potential to unlock unique opportunities and innovation in ways that more conventional thinking and analysis cannot.

Some of the highlights from the Women in Private Capital report illustrate the extent to which change is taking place across the industry. In 2017, women made up 11% of senior investment professional roles within the sector, and across all investment roles, women comprise 20% of the total population in Australia. The progress has been positive, but there is still clearly more work to be done.

AVCAL ANNUAL AWARDS

This year AVCAL was proud to celebrate the 25th anniversary of the industry’s annual conference, and pay special recognition to the fund managers, portfolio companies and corporate advisors who have helped build better businesses through private capital investment over the past quarter of a century.

In addition to the Building Better Businesses annual deal of the year awards, AVCAL also handed out awards under two special award categories to celebrate the 25th anniversary: Best investment over the last 25 years, and outstanding contribution to the industry for individuals who have played an instrumental role in developing the private equity and venture capital investment sector in Australia since its inception. The 2018 award winners are set out below.

BUILDING BETTER BUSINESS AWARDS

Best Venture Capital Investment Brandon Capital partners – Elastagen

Best Small-Cap Investment under $100 million (joint winners)Mercury Capital – NovotechPacific Road – Aurelia Metals

Best Mid-Cap Investment between $100 and $250 millionQuadrant Private Equity – ZIP Industries

Best Upper Mid-Cap Investment between $250 million and $500 millionCHAMP Private Equity – Accolade Wines

LEADERSHIP AWARDS

Michael Hirshorn AwardQuadrant Private Equity – ICON Cancer Care

Private Capital Firm of the YearQuadrant Private Equity

Leadership in Diversity AwardM.H. Carnegie & Co

Lifetime Contribution AwardPeter Wiggs – Archer Capital

25TH ANNIVERSARY AWARD FOR OUTSTANDING CONTRIBUTION TO THE INDUSTRY

BEST INVESTMENT OF THE LAST 25 YEARS (JOINT WINNERS)

Advent Partners and KKRFor their investment in GenesisCare

BEST INVESTMENT OF THE LAST 25 YEARS – SPECIAL RECOGNITION

JAFCOFor their investment in ResMed

Pacific Equity PartnersFor their investment in Frucor Beverages

Macquarie Direct InvestmentFor their investment in JB Hi-Fi

AMWINFor their investment in SEEK

CHAMP VenturesFor their investment in Amdel

Archer Capital & Bain CapitalFor their investment in MYOB

Brandon Capital Partners & GBS VenturesFor their investment in Spinifex Pharmaceuticals

Anacacia CapitalFor their investment in Appen

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

WHEN EMPLOYEES BELIEVE THEIR ORGANISATION IS COMMITTED TO, AND SUPPORTIVE OF DIVERSITY THEY FEEL INCLUDED AND RESULTS SHOW:*

EMPLOYEES REPORT BETTER BUSINESS PERFORMANCE THROUGH INNOVATION

83%UPLIFT

RESPONSIVENESS TO CHANGING CUSTOMER NEEDS

31%UPLIFT

TEAM COLLABORATION 42%

UPLIFT* AVCAL Women in Private Capital The Case for Change Report, September 2018

— Michael Alscher— Gareth Banks— Cameron Blanks— John Brakey— Peter Chapman— Bob Christiansen— John Dyson— Patrick Elliott— Paul Evans— Bill Ferris AC— Chris Hadley— Rupert Harrington— Robert Inglis— Anthony Kerwick— Julian Knights

— Phil Latham— Sandy Lockhart— Greg Minton— Callen O’Brien— George Penklis— Andrew Rothery— Tim Sims— Joe Skrzynski AO— Judith Smith— Greg Smith— Brigitte Smith— Stuart Wardman-Browne— Peter Wiggs— John White

INDUSTRY AWARDS

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AVCAL IN THE COMMUNITY

The experience and skills of AVCAL’s members can be a vitally important driver to help propel the work of AVCAL’s two philanthropic partners, Workplace Giving Australia (WGA) and Social Ventures Australia (SVA).

ABOUT WORKPLACE GIVING AUSTRALIA

AVCAL member firms, alongside PE and VC-backed investee companies, proudly support the work of WGA in promoting and advancing the take-up of workplace giving as an effective way to strengthen financial contributions into Australia’s charitable sector.

WGA (previously known as the Australian Charities Fund) helps employers establish giving programs, allowing employees to make pre-tax donations which provide charities with predictable, low-cost and efficient funding for their community-facing activities.

During the year, PE and VC firms continued to implement and promote workplace giving programs in their own businesses, and, where there is an opportunity, across their investee companies.

Some of AVCAL’s member firms have implemented programs which see 100% of all team members contributing to workplace giving, while even at AVCAL, more than two-thirds of all staff contribute to the organisation’s workplace giving program supporting several charities.

SOCIAL VENTURES AUSTRALIA

Social Ventures Australia is a not-for-profit organisation aimed at alleviating disadvantage in the community – to create an Australia where all people and communities thrive.

SVA achieves its objectives through a variety of different strategies, one of which is its impact investing programme.

Through this strategy, SVA can seek to influence systems in order to ensure that better social outcomes are realised for people by learning about what works in communities, helping organisations be more effective, sharing insights and perspectives to bring about change.

SVA has had a very successful year in 2018, raising multiple impact investment funds, all of which aim to deliver positive social outcomes while generating financial returns for investors.

In June, leading industry superannuation fund, and AVCAL member firm, HESTA more than doubled the size of its $30 million Social Impact Investing Trust, which is managed by SVA, with an additional $40 million commitment. The fund, which aims to achieve a market-based financial return, then went on to commit $19 million towards the financing of a world-first suburban village for people living with dementia.

SVA also recently raised $15 million for its Diversified Impact Fund, and $5 million for a social impact bond, known as the Sticking Together Project, which will address youth unemployment in NSW.

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

Both SVA and WGA featured prominently at AVCAL’s 2018 conference in a spotlight session to highlight the importance of social impact investment and workplace giving.

THE PARTNERSHIP WITH AVCAL HAS ALLOWED US TO DIRECTLY ACCESS SKILLS TO SUPPORT OUR APPROACH TO INVESTMENT THROUGH THE KNOWLEDGE AND EXPERIENCE WHICH RESIDES WITHIN THE PRIVATE CAPITAL COMMUNITY.MICHAEL LYNCHSVA’s Executive Director, Impact Investing

THOSE PEOPLE WHO WERE INVOLVED WITH THEIR WORKPLACE GIVING PROGRAM WERE ACTUALLY STAYING WITH THE COMPANY FOR LONGER AND THEY WERE MORE MOTIVATED – ULTIMATELY, THAT LEADS TO STAFF BEING MORE EFFECTIVE AND EFFICIENT AT WHAT THEY DO EVERY DAY.JENNY GEDDESWGA CEO, at the AVCAL 2018 Annual Conference

Latitude Financial Services, acquired in late-2015 by a consortium of investors including member firm KKR, has set up its own workplace giving program in 2017 with WGA’s assistance. Today, around one-third of staff contribute to the program, which is growing each day.

Another AVCAL member firm, Pacific Equity Partners, has collaborated over many years with its investee companies to implement workplace giving programs for management and staff. Today, those programs have become an essential component of the organisation’s philosophy of generating positive community outcomes as a direct result of a focussed strategy that supports profit with purpose.

Two companies that were previous private equity investee businesses, leading consumer goods retailer JB Hi-Fi, and online employment marketplace SEEK, took out top awards at the annual WGA Awards, taking the Gold and Silver awards for the depth and impact of their workplace giving strategies.

Around 82% of JB Hi-Fi’s 7000+ strong staff community are involved in its ‘Helping Hands’ workplace giving program.

WGA and JB Hi-Fi research estimates that the program delivers significant positive impact in respect of staff engagement and retention, which ultimately delivers financial benefits and efficiencies for the company, yielding around $8 million a year in reduced costs associated with turnover and new recruitment.

For several years now, AVCAL has partnered with SVA to support the organisation’s mentoring programme within its Impact Investing Team. This year, three of SVA’s impact team were mentored by senior leaders from within AVCAL membership community. So successful has that partnership been that during the course of this year, one of the mentors has been brought in by SVA to join the investment committee of the organisation’s Diversified Impact Fund.

The partnership with SVA enables AVCAL to assist members of the SVA impact team through special access to targeted learning and education sessions run across the private capital investment community.

INDUSTRY EVENTS

IN APRIL 2018, AVCAL WAS VERY FORTUNATE TO BE ABLE TO HOST THE LEADERS FROM MORE THAN 30 KEY PRIVATE CAPITAL MARKETS IN SYDNEY FOR TWO DAYS OF HIGH-LEVEL STRATEGIC MEETINGS.

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VC INDUSTRY FORUM

In May AVCAL hosted for the first time in many years a special industry event for participants in the venture capital and early stage investment ecosystem. AVCAL’s VC Industry Forum provided a unique opportunity for senior leaders from VC firms, institutional investors, as well as entrepreneurs and government representatives to come together to share insights into some of the big trends that are shaping the technology, agriculture and life sciences sectors at the moment.

The event was a resounding success, with all of those in attendance benefiting from the insights shared and the participation of a number of high profile speakers from the Future fund and MLC, as well as visiting investors from United States-based firms Top Tier Capital Partners and Greenspring Associates.

PE101 AND VC101

AVCAL’s Professional Development suite of courses continue to be highly popular across the industry.

This year AVCAL continued partnerships with leading firms KPMG (PE101) and Gilbert & Tobin (VC101) to deliver the programmes. Both courses continue to be extremely popular with new entrants into the industry, with most sessions selling-out well before the running of the event.

Close to 270 people attended a variety of AVCAL professional development courses throughout 2018.

INDUSTRY EVENTS

BUILDING BETTER BUSINESSES GALA DINNER

In March this year AVCAL partnered for the first time with the Asian Venture Capital Journal (AVCJ) to host the Building Better Businesses Gala Dinner at Sydney’s newly developed Hyatt Regency Hotel.

Held in conjunction with AVCJ’s Australia and New Zealand Private Equity Forum, the new partnership helped to bring together a vibrant community of close to 400 people from all corners of the industry. Domestic leaders were joined by a significant number of offshore investors from the Asia region, as well as North America and Europe. The dinner was the ideal conclusion to AVCJ’s Sydney Forum for 2018 and represented the premier networking event for the private capital investment community in Sydney over the past 12 months.

Keynote speaker at the event was the former Premier of New South Wales, the Hon Mike Baird. After leaving politics some years ago, Mr Baird has since become the Chief Customer Officer of National Australia Bank’s Corporate and Institutional Division. In a fireside chat with AVCAL’s go-to master of ceremonies, Channel Nine Television personality Ms Deborah Knight, Mr Baird shared his insights into the economic opportunities for Australian businesses in the Asia region and he also reflected on the importance of boosting investment into productive infrastructure to support business activity. He also reflected on the most significant rewards and challenges during his time as a senior political figure with responsibility for leadership of the nation’s most populous state.

GLOBAL PRIVATE EQUITY AND VENTURE CAPITAL CONGRESS

The Global Private Equity and Venture Capital Congress (GVCC) is the international network of private capital industry and trade associations around the world.

Periodically, the GVCC holds meetings for all chief executives of the associations to come together and share experiences around the leadership and operational strategies of representing the private capital industry in each jurisdiction. The meetings also serve as an opportunity to canvass the mega trend issues confronting the industry on a global level and identify the ways in which the leadership group can collaborate together to harness the weight of the entire global private capital sector to advance specific reforms.

In April 2018, AVCAL was very fortunate to be able to host the leaders from more than 30 key private capital markets in Sydney for two days of high-level strategic meetings. AVCAL took the opportunity of the meeting to showcase the strength of the Australian private capital industry, and to lead discussion on a range of key issues including the mechanisms through which the industry will continue to bolster its focus on promoting gender diversity across the sector.

Regular collaboration across the GVCC continues across jurisdictions on a number of important issues, including key policy reforms in areas such as international taxation and the introduction of new compliance obligations and regulation in key markets such as Europe. The next meeting of the GVCC leaders will take place in Japan in the forthcoming 12-18 months.

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

$1.32B WAS RAISED BY VC IN FY2017, MORE THAN DOUBLE THE PREVIOUS RECORD ($568M)

95% OF PEOPLE ATTENDED THE GALA DINNER TO NETWORK WITH COLLEAGUES ACROSS THE INDUSTRY

ATTENDANCE AT THE 2018 DINNER – AROUND 400 SENIOR LEADERS

THE FIRST TIME THE DINNER HAS BEEN HELD IN PARTNERSHIP WITH LEADING INTERNATIONAL MEDIA GROUP, THE ASIAN VENTURE CAPITAL JOURNAL

$429M WAS INVESTED IN 117 HIGH GROWTH COMPANIES IN FY17

ICT, HEALTHCARE AND LIFE SCIENCES, FINANCIAL SERVICES WERE THE TOP THREE VC INVESTMENT AREAS

SUPER FUNDS, PUBLIC SECTOR AND HIGH NET WORTH INDIVIDUALS WERE TOP THREE INVESTORS IN VC

96%

98%

OF ATTENDEES WOULD RECOMMEND PE101

TO A COLLEAGUE

OF ATTENDEES WOULD RECOMMEND VC101

TO A COLLEAGUE

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AVCAL CONNECT – MELBOURNE

During the year AVCAL held a thought-provoking Connect event in Melbourne featuring a number of leading experts from within, and outside, the industry.

In a panel discussion chaired by ANZ Bank’s Caryn Kakas, Andrew Major (HESTA), Bec Scott (founder of social impact enterprise STREAT) and Rob Koczkar (Social Ventures Australia) led a lively discussion on the role of social impact investing in our community, and the role that social entrepreneurs and investors can play together to bring about significant and enduring change for the disadvantaged in our community.

An investment by Social Ventures Australia helped STREAT create a social enterprise that assists homeless youth to have a stable self, stable job and stable home. Through its six cafes and food preparation facilities across Melbourne, STREAT provides young people with supported pathways to employment – including assistance finding stable housing, vocational skills and improved mental health outcomes. Since being founded just a few short years ago, STREAT has flourished and become a leading example of a sustainable social enterprise running a portfolio of efficient, effective and innovative businesses. The organisation is now more than 70% self-funded through its business operations, and is on-target to be fully self-sustaining in the next few years.

AVCAL CONFERENCE

The 2018 AVCAL Conference at Queensland’s Surfers Paradise explored changes across the private capital landscape and featured sessions with industry experts covering innovation, investment and the economy.

The conference featured more than a dozen presentations to more than 450 attendees from across AVCAL’s membership base, and beyond. One of the common themes was how innovation and digital solutions can positively reshape the economy as a whole, with PE and VC firms set to lead the charge.

Leading innovation futurists Future Crunch gave conference attendees a thrilling peek into how the intersection of mega trends and innovation across the energy and healthcare sectors is radically reshaping the world across developed and developing economies.

While innovation presents challenges, it also affords opportunities, with long-term data proving the industry’s adaptability to challenges.

Cambridge Associates presented an in-depth analysis showing the industry’s strong outperformance against public equity over the two decades between 1998 and 2018. Similarly, an EY PE Exit Study also showed strong outperformance, with earnings growth the key driver of value while innovation continues to support sustainable business models.

The conference also explored the views of businesses invested in by both PE and VC firms, including the changing relationship with institutional investors and investee companies. Westpac non-executive director and former head of private equity-backed Veda Group, Nerida Caesar, shared her perspectives on the importance of putting customers at the heart of all business decision-making, and Dan Collins, co-founder and CEO of leading Australian healthcare company, GenesisCare, gave delegates an insight into his experience working alongside the private capital industry to grow and scale his business.

A RARE INDUSTRY RETROSPECTIVE PANEL FEATURING SIX PIONEERS WHO EACH PLAYED KEY ROLES IN CREATING A THRIVING PRIVATE CAPITAL INDUSTRY IN AUSTRALIA OVER THE PAST 25 YEARS WAS ONE OF THE HIGHLIGHTS OF THIS YEAR’S CONFERENCE.

The pioneers took a moment to recall memories of the early days of the industry in Australia, and the challenges that had to be overcome in order to build the first momentum for the industry with investors and government. CHAMP Private Equity co-founders Joe Skrzynski and Bill Ferris, joined Pacific Equity Partners’ Tim Sims, Bob Christensen (Southern Cross Ventures), Judith Smith (non-executive, director) and Archer Capital’s Peter Wiggs in the pioneers panel which was an entertaining and fitting way to mark the 25 year milestone for the industry’s annual conference.

As always, the conference provided delegates with numerous opportunities to take time away from the programme to network and build relationships across the sector, with special events organised such as a sailing regatta, women’s networking drinks, networking cocktail party, and a special VC investors breakfast featuring leading tech investor and TV personality Steve Baxter. The conference closed with celebrations for the winners of this year’s AVCAL Awards, and the traditional conference gala dinner.

Feedback from all delegates at the 2018 conference was very positive, with many in attendance enjoying the return of the event to Queensland’s Gold Coast, and the special features of this year’s event marking the 25 history of the industry gathering.

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

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STAKEHOLDER ENGAGEMENT

INVESTING IN DEEPER UNDERSTANDING OF MEMBERS AND HOW THEY ENGAGE WITH AVCAL

Integral to AVCAL’s fabric is to ensure that members have a level of awareness and insight into the work the organisation is doing to support the growth and evolution of the industry in a variety of different ways. Through the use of digital communication strategies and one-on-one discussions, the AVCAL team devotes considerable time to building and maintaining solid working relationships with every member firm across the industry.

As the industry continues to evolve, AVCAL has explored how the organisational strategy for the next three years should be re-shaped to better reflect the role and aspirations of the Association.

Over the past 12 months, the AVCAL Board and management team have been working closely with a specialist external consulting firm to develop a digitally-focussed strategic platform for the future. The work on this project encompassed exercises to help define the future aspirations of the industry and AVCAL’s role in helping to achieve that, and mapping a comprehensive outline of the effectiveness and efficiency of the way in which AVCAL currently engages with its members.

In other phases of the project, work was done to engage directly with members and non-member firms to better understand the user experience of working with AVCAL, and the specific opportunities they see for the organisation into the future. All of this insight was folded into the development of the new architecture for AVCAL’s new 2019-22 organisational strategy.

ONE OF THE EXCITING NEW FEATURES OF AVCAL’S RE-SHAPED STRATEGY FOR THE FUTURE WILL BE TO INVEST FINANCIAL AND RESOURCE COMMITMENTS INTO DEVELOPING A MUCH STRONGER PLATFORM OF DIGITAL ENGAGEMENT CHANNELS TO EQUIP ALL MEMBERS TO PARTICIPATE IN AVCAL’S WORK IN VARIOUS WAYS.

Work has already commenced on development of a new data exchange platform, alongside an industry trend watcher analysis function which will enable members to engage and share their views on key topics with AVCAL through a dedicated ‘my voice portal’.

These changes, alongside a range of other improvements to AVCAL’s member engagement and product mix, will be rolled out in 2019 as part of a newly developed digital website leveraging the organisation’s new Australian Investment Council brand identity.

POLICY & ADVOCACY

CONNECTED COMMUNITY

INVESTOR ENGAGEMENT

WE’RE INVESTED IN MEMBER GROWTH & INSIGHTS

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STAKEHOLDER COMMITTEESLP ENGAGEMENT

CHAIR Michael Lukin, ROC Partners

Alicia Gregory, MLCAndrew Major, HESTACameron Blanks, Pacific Equity PartnersJoanne Hordicek, Pomona AustraliaMichael Weaver, SunSuperNeil Stanford, HostplusSteve Byrom, Future Fund

GROWTH FUNDS

CHAIR Jason Cachia, Evolve Private Capital

Brendan Sulway, Bridgeport CapitalCallen O’Brien, Anchorage CapitalChania Rodwell, M.H. Carnegie & CoGareth Banks, Odyssey Private EquityJeremy Samuel, Anacacia CapitalJeremy Steele, Harbert Management CorporationJohn White, Next CapitalSimon Feiglin, The Riverside CompanySymon Vegter, Advent Partners

VENTURE CAPITAL

CHAIR Stephen Thompson, Brandon Capital Partners

Amanda Hjorring, Square Peg Capital Anne-Marie Birkill, One VenturesBen Heap, H2 VenturesElaine Stead, Blue Sky Venture CapitalMark Bonnar, Southern Cross Venture PartnersMatt McNamara, Bioscience ManagersMelissa Widner, NAB VenturesNick McNaughton, ANU Connect VenturesRick Baker, Blackbird VenturesRoger Voyle, Southmore CapitalSarah Kosciuk, Department of Industry, Innovation and Science

WORKING GROUPSLEGAL AND TAX

CHAIR Yasser El-Ansary, AVCAL

Boris Dangubic, KKRDerryn Ruolle, Quadrant Private EquityDominic Tayco, Stafford Capital PartnersDragan Misic, PwCMatt Weerden, EYVasuki Sivaloganathan, EYJeremy Stevenson, CHAMP Private EquityKa Sen Wong, Allen & OveryLucas Georgiadis, KPMGMark O'Reilly, PwCMark Peters, Next CapitalSam Kong, Pacific Equity PartnersStephen Thompson, Brandon Capital PartnersToby Eggleston, Greenwoods & Herbert Smith Freehills

MEMBER ENGAGEMENT

CHAIR Bryan Zekulich, EY

Callen O’Brien, Anchorage Capital PartnersFrank Heckes, Archer Capital Mark Peters, Next Capital Peter Scrine, Crescent Capital PartnersStephen Thompson, Brandon Capital PartnersTim Martin, Private Equity Investment Professional

DIVERSITY

CO-CHAIR Fiona Lock, CHAMP Private Equity

CO-CHAIR Russell Sinclair, Westpac

Bing Jiang, Next CapitalChania Rodwell, M.H. CarnegieJames McGrath, OneVenturesMichelle Segaert, EYNicole Connolly, Allegro FundsGeorgina Varley, Adamantem Capital

AVCAL CONFERENCE

Anne-Marie Birkill, One VenturesTim Martin, Private Equity Investment Professional

STAKEHOLDER COMMITTEESLP Engagement, Growth Funds, Venture Capital

WORKING GROUPSLegal and Tax, Member Engagement, AVCAL Conference, Diversity

COMMITTEES & WORKING GROUPS

From July 2017, AVCAL rolled-out the new comprehensive Code of Conduct, setting out the standards that help to protect and enhance the industry’s reputation as a world-class, professionally managed investment industry in Australia.

2018 WAS THE FIRST YEAR THAT ALL GP MEMBER FIRMS WERE REQUIRED TO PROVIDE AVCAL WITH A SIGNED DECLARATION CONFIRMING THAT THEIR FIRM MAINTAINS POLICIES AND PROCEDURES TO ENSURE THAT THEY COMPLY WITH ALL OF THE OBLIGATIONS SET OUT IN THE CODE.

This was an important change, signifying the dedication our community of members has towards upholding the highest standards of professional and ethical practice in everything they do.

The enhanced approach to the implementation and ongoing monitoring of the Code of Conduct plays a key role in helping to protect the industry’s co-regulatory framework with the Australian Securities and Investments Commission in Australia.

CODE OF CONDUCT

Into the future, AVCAL will require all GP member firms to provide an annual declaration confirming ongoing compliance.

In an environment where community, media and regulatory expectations of accountability, transparency and ethical business practices is high, taking a proactive approach to compliance with AVCAL’s industry code of conduct is now more important than ever.

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CONCISE FINANCIAL REPORT

Australian Private Equity and Venture Capital Association Limited (AVCAL) is incorporated and domiciled in Australia and has its registered office and principal place of business at Level 12, Aurora Place, 88 Phillip Street, Sydney NSW 2000.

The concise financial statements were authorised for issue by the directors on 26th October 2018. The directors have the power to amend and reissue the financial statements. The concise financial statements are presented in the Australian currency.

The concise financial report is an extract from the full financial statements and specific disclosures included in the concise financial report have been derived from the full financial statements. The principal accounting policies adopted in the preparation of the concise financial report are consistent with the full financial statements.

The concise financial report cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the entity as the full financial statements.

Further financial information for members can be obtained from the full financial statements and the full financial statements are available, free of charge, from AVCAL.

AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED

FOR THE YEAR ENDED 30 JUNE 2018

AVCAL HAS RECORDED A NET SURPLUS AFTER TAX OF $82,846 FOR FY2018 (FY2017 $75,192).TOTAL REVENUE FOR THE YEAR WAS $2,982,966, UP BY $125,854 (4%) FROM THE PRIOR YEAR.

Membership subscription revenue of $1,636,982 was $45,705 (3%) lower than FY2017, due to normal cyclical changes in the composition of AVCAL’s membership base. Sponsorship revenue was $200,000 for the year, which was also lower than revenue generated in FY2017, but in-line with budget. During FY2018, AVCAL made changes to the structure and size of corporate partnerships, to better reflect the expectations of partners and reduced capacity for a number of large corporate advisory firms to allocate marketing spend to corporate partnerships. AVCAL conference revenue increased by $71,766 (11%), due to a refreshed conference format and venue in September 2017.

The normal cyclical nature of the private equity and venture industry – consistent with the broader financial services and investment management sector – often leads to fluctuations in the revenue base of AVCAL from time-to-time. AVCAL’s Executive, with oversight from the Board, actively manages the organisation’s financial commitments to appropriately budget for, and adjust, for these year-on-year movements.

There continues to be overall growth in the private capital investment industry in Australia, with aggregate funds under management exceeding $30 billion, sourced from a wide range of domestic and international investors. That growth across the sector is reflected in the ongoing strong demand for AVCAL’s core product base, spanning unique value-add activities such as policy development and advocacy, as well as knowledge sharing and training events.

AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED

TREASURER’S REPORTFor the year ended 30 June 2018

TOTAL EXPENSES AMOUNTED TO $2,877,453, REPRESENTING A 4% ($123,280) INCREASE ON THE PRIOR YEAR.

During the year, AVCAL has been engaged in a significant project to review and reset the organisation’s strategy for the next three years. The project involved engaging the services of an external strategy consulting firm, with deep expertise in the area of digital technology in the context of membership bodies. The work undertaken in this project spans all facets of AVCAL’s work agenda, including a review of the organisation’s existing identity and brand in the marketplace.

AVCAL has also continued to deliver industry-leading market insights and research, through key external reports such as Annual Activity Yearbook, as well as the Deal Metrics Survey of private capital investment trends. During FY2018, AVCAL also partnered with leading economics advisory consultant, Deloitte Access Economics, to release a new analysis of the industry’s contribution to gross domestic product and employment growth across Australia. The various research reports developed and released by AVCAL play an instrumental role in supporting the organisation’s policy development and advocacy initiatives with government and regulators, on behalf of the industry. Key areas where AVCAL has continued to progress a range of key policy and advocacy initiatives include: RG97 disclosure of costs and fees by superfunds, taxation, foreign investment policy, medical research and commercialisation, immigration and competition policy.

In addition to the annual industry conference held at the Melbourne Cricket Ground in September 2017, AVCAL delivered a broad range of high quality industry knowledge and networking events, often working alongside partner organisations. AVCAL products are brought to market through a variety of channels, and in some cases key events are hosted at external venues, where specific costs are incurred to ensure the expectations of those attending are exceeded. In FY2018, event costs of $495,439 were $62,504 (11%) lower than in the prior year, primarily due to negotiated savings in food and beverage costs with event suppliers where AVCAL has developed a long-term commercial relationship.

Current assets of $4,672,741 were $352,003 (8%) higher than the prior year due to the surplus achieved during the financial year and an increase in trade debtors as at 30 June 2018.

Net cash inflows from operating activities decreased by $52,263 compared with prior year, attributable largely to changes in the organisation’s expenditure.

The surplus generated for FY2018 will be re-invested into key organisational initiatives during the forthcoming year, particularly in areas that require new initiatives to be put in place as part of the organisation’s updated three-year strategy, which comes into place during FY2019. Total accumulated surpluses at 30 June 2018 amounted to $2,623,064.

The accumulated surpluses help to provide AVCAL with financial stability during periods where fundraising and investment activities across the industry, and consequently membership revenues, fluctuate as a result of the normal cyclical nature of the financial services and investment management sectors. Accumulated surpluses also provide AVCAL with capacity to invest in strategic opportunities as they arise.

NET SURPLUS AFTER TAX FOR FY2018 (FY2017 $75,192)

TOTAL REVENUE FOR FY2018 (UP 4% FROM PRIOR YEAR)

$82,846 $2,982,966

THERE CONTINUES TO BE OVERALL GROWTH IN THE PRIVATE CAPITAL INVESTMENT INDUSTRY IN AUSTRALIA, WITH AGGREGATE FUNDS UNDER MANAGEMENT EXCEEDING $30 BILLION.BRYAN ZEKULICHDirector, EY

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STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 30 June 2018

REVENUE FROM ORDINARY ACTIVITIES 2018 ($) 2017 ($)

Conference attendance fees 686,484 614,718

Sponsorship 200,000 237,500

Membership subscriptions 1,636,982 1,682,687

Networking event revenue 227,846 126,845

Training courses 109,913 65,113

Other revenue from ordinary activities 28,480 32,407

Revenue from ordinary activities 2,889,705 2,759,270

Interest income 93,261 97,842

Total revenue 2,982,966 2,857,112

EXPENSES FROM ORDINARY ACTIVITIES

Salaries, wages and bonus (1,599,271) (1,549,490)

Events and public relations expense (495,439) (557,943)

Rent and outgoings (128,656) (183,951)

Marketing/advertising/sponsorships (197,700) (67,753)

IT Maintenance expense (66,588) (45,145)

Global Venture Capital Congress (54,060) –

Public policy advocacy (47,294) (64,788)

Travel and accommodation (36,051) (34,466)

Telecommunications (32,890) (33,184)

Insurance (18,566) (17,652)

Subscriptions (12,785) (10,532)

Training (10,935) (6,951)

Printing/stationery/postage (4,582) (6,635)

Bank charges (2,946) (3,574)

Outsourced research (1,800) (62,105)

Staff recruitment (412) (380)

Other (90,816) (77,781)

Expenses from ordinary activities (2,800,791) (2,722,330)

Depreciation and amortisation expense (76,662) (31,843)

Total expenses (2,877,453) (2,754,173)

Profit from ordinary activities before income tax expense 105,513 102,939

Income tax expense (22,667) (27,747)

Profit from ordinary activities after income tax expense 82,846 75,192

Further detail is available in the full financial statements

BALANCE SHEETAs at 30 June 2018

CURRENT ASSETS 2018 ($) 2017 ($)

Cash and cash equivalents 962,174 990,868

Receivables 161,683 57,878

Term deposits 3,397,477 3,188,903

Other 151,407 83,089

Total current assets 4,672,741 4,320,738

NON-CURRENT ASSETS

Plant and equipment 208,373 272,045

Intangible assets 783 1,991

Total non-current assets 209,156 274,036

Total assets 4,881,897 4,594,774

CURRENT LIABILITIES

Accounts payable 442,129 337,746

Deferred revenue 1,440,032 1,274,341

Deferred tax liability 12,057 12,726

Lease incentive liability 34,760 34,760

Provisions 140,037 159,240

Total current liabilities 2,069,015 1,818,813

NON-CURRENT LIABILITIES

Provisions 100,021 96,703

Lease incentive liability 89,797 139,040

Total non-current liabilities 189,818 235,743

Total liabilities 2,258,833 2,054,556

Net assets 2,623,064 2,540,218

EQUITY

Retained profits 2,623,064 2,540,218

Total equity 2,623,064 2,540,218

AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED

STATEMENT OF CHANGES IN EQUITYFor the year ended 30 June 2018

2018 ($) 2017 ($)

Total equity at the beginning of the financial year 2,540,218 2,465,026

Profit for the year 82,846 75,192

Total equity at the end of the financial year 2,623,064 2,540,218

EVENTS OCCURRING AFTER BALANCE DATE

Since 30 June 2018, there have been no matters or circumstances not otherwise dealt with in the Concise Financial Report or Directors’ Declaration that have significantly affected or may affect the Company.

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STATEMENT OF CASH FLOWSFor the year ended 30 June 2018

DIRECTORS’ DECLARATIONFor the year ended 30 June 2018

CASH FLOWS FROM OPERATING ACTIVITIES 2018 ($) 2017 ($)

Proceeds from membership subscriptions 1,791,697 1,850,956

Receipts from members and non-members 1,465,127 1,343,502

Payments to suppliers and employees (3,119,972) (2,985,702)

Interest received 95,696 66,022

Income taxes paid (40,885) (30,852)

Net cash inflow from operating activities 191,663 243,926

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from held-to-maturity investments 2,889,155 504,488

Payments for held-to-maturity investments (3,097,729) (2,215,940)

Payments for plant & equipment and intangibles (11,783) (30,754)

Net cash (outflow)/inflow from investing activities (220,357) (1,742,206)

NET (DECREASE)/INCREASE IN CASH HELD (28,694) (1,498,280)

Cash at the beginning of the financial year 990,868 2,489,148

Cash at the end of the financial year 962,174 990,868

The Directors declare that in their opinion, the concise financial report for the year ended 30 June 2018 as set out on pages 2 to 6 complies with Accounting Standard AASB 1039 Concise Financial Reports.

The concise financial report is an extract of the full financial report for the year ended 30 June 2018. The financial statements and specific disclosures included in the concise financial report have been derived from the full financial report, which is available upon request.

This declaration is made in accordance with a resolution of the Directors.

BRYAN ZEKULICHDirector

Sydney, NSW26th October 2018

AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED

To the members of Australian Private Equity and Venture Capital Association Limited

REPORT ON THE CONCISE FINANCIAL REPORT

OPINION

We have audited the concise financial report of Australian Private Equity & Venture Capital Association Limited (“the Company”) which comprises the balance sheet as at 30 June 2018, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and the directors’ declaration.

In our opinion, the accompanying financial report of the Company for the year ended 30 June 2018 complies with the Australian Accounting Standard AASB 1039 Concise Financial Reports.

CONCISE FINANCIAL REPORT

The concise financial report does not contain all the disclosures required by the Australian Accounting Standards in the preparation of the financial report. Reading the concise financial report and the auditor’s report thereon, therefore, is not a substitute for reading the financial report and the auditor’s report thereon. The concise financial report does not reflect the effects of events that occurred subsequent to the date of our report on the financial report.

THE AUDITED FINANCIAL REPORT AND OUR REPORT THEREON

We expressed an unmodified audit opinion on the financial report in our report dated 26 October 2018.

RESPONSIBILITIES OF THE DIRECTORS FOR THE CONCISE FINANCIAL REPORT

The directors are responsible for the preparation of the concise financial report in accordance with Accounting Standard AASB 1039 Concise Financial Reports, and the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of the concise financial report.

INDEPENDENT AUDITOR’S REPORT ON CONCISE FINANCIAL REPORT

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on whether the concise financial report, complies in all material respects, with AASB 1039 Concise Financial Reports based on our procedures which were conducted in accordance with Auditing Standard ASA 810 Engagements to Report on Summary Financial Statements.

INDEPENDENCE

We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code).

HLB MANN JUDD ASSURANCE (NSW) PTY LTDChartered Accountants

S P JAMESDirector

Sydney, NSW26 October 2018

Further detail is available in the full financial statements.

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THANK YOU TO ALL OUR PARTNERS THROUGHOUT 2018

AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED

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