The document summarizes the results of a survey of 94 Asia Pacific private equity funds on key terms and conditions in their limited partnership agreements. Some of the main findings include:
1) Annual management fees in Asia Pacific funds are generally higher than global averages, likely due to smaller average fund sizes, though funds may not generate excessive fee income.
2) Nearly three-quarters of surveyed funds now grant a 100% management fee offset, up from less than half in 2009.
3) Most Asia Pacific funds follow best practices like a "fund-by-fund" distribution waterfall and include key person clauses.
4) Over half of funds lack a "no-fault divorce" clause, though voting thresholds
This document profiles and evaluates 25 sovereign wealth funds for their potential as long-term investors in sustainable infrastructure projects. It scores the funds based on 5 criteria related to their investment flexibility and capabilities. The top 10 highest ranked funds are then profiled in more detail based on their investment strategies, sustainability policies, geographic exposure, asset classes, and management capabilities. The profiles are used to further categorize the funds into a matrix based on their degree of investment flexibility and emphasis on sustainability, identifying four types of funds: committed, entrepreneurial, opportunistic, and observing. The overall aim is to better understand which funds may be better partners for sustainable infrastructure investments.
This document summarizes a presentation on implementing the Net Stable Funding Ratio (NSFR) liquidity framework. It discusses:
1) An overview of the NSFR and how it differs from the Liquidity Coverage Ratio in measuring long-term versus short-term liquidity;
2) How to build the NSFR into funds transfer pricing (FTP) logic by updating FTP systems to incorporate long-term funding costs and risks;
3) Integrating the NSFR into existing FTP and liquidity management systems through a liquidity transfer pricing framework that allocates liquidity costs and benefits.
The document summarizes a study on the Liquidity Coverage Ratio (LCR) across Indian banks. It finds that all banks in the sample meet the minimum LCR requirement of 60%. Over half of banks already meet the final 100% requirement. Public sector banks have an average LCR of 104.76% compared to 87.28% for private banks. The study analyzes IndusInd Bank's LCR components and finds its high cash outflows and low high-quality liquid assets result in a lower LCR compared to other banks. It recommends actions for IndusInd Bank to improve its LCR like increasing high-quality assets and reducing wholesale funding dependence.
(1) Diversified Funding: Problems with Steering Towards Long-Term Stable Funding; (2) Analysing the Best Internal Mechanism for Managing new Liquidity Requirements
DSP World Mining Fund - An Open Ended Fund Of Funds Scheme investing in Mining Companies through International Funds
This Open-ended Fund of Funds Scheme is suitable for investors who are seeking*:
1. Long-term capital growth
2. Investment in units of overseas funds which invest primarily in equity and equity related securities of mining companies
3. High Risk**
*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.
**Risk may be represented as:
Low: Investors understand that their principal will be at low risk
Moderately Low: Investors understand that their principal will be at moderately low risk
Moderate: Investors understand that their principal will be at moderate risk
Moderately High: Investors understand that their principal will be at moderately high risk
High: Investors understand that their principal will be at high risk
Nepal Rastra Bank introduced new consolidated directives in accordance with the BFI Act and Basel II principles to ensure financial stability and discipline in the Nepalese banking industry. The directives establish regulations in areas such as capital adequacy, loan classification and provisioning, credit concentration limits, accounting policies, risk management, corporate governance, compliance, investment policies, reporting requirements, and interest rates. Banks and financial institutions are responsible for complying with the 16 directives, which cover topics such as capital adequacy, loan classification, credit limits, accounting standards, risk minimization, governance, compliance, investments, reporting, transfers of promoter shares, consortium financing, credit information, reserves, branch expansion, interest rates, and financial resource generation
- The document provides an investment outlook and strategy for 2022, discussing themes of survival, sustainability, and the changing global order.
- It suggests 2022 may see a continuation of 2021 trends but different outcomes for investors as central banks withdraw support. Moderate returns should be expected.
- The new normal may include continued remote working, ESG as standard practice, and electric vehicles, while lower growth, rates, and inflation become accepted.
Econometrics Analysis of Capital Adequacy Ratios and the Impact on Profitabil...iosrjce
This paper examines the econometrics analysis of capital adequacy ratios and the impact on the
profitability of Commercial Banks in Nigeria from 1980 – 2013. The objective is to investigate whether there is
a dynamic long run relationship between capital adequacy ratios and the profitability of commercial banks.
Time series data were sourced from Stock Exchange factbook and financial statement of quoted commercial
banks and the Johansen co-integration techniques in vector error correction model setting (VECM) as well as
the granger causality test were employed. The study has Return on Asset (ROA), Return on Investment (ROI)
and Return on Equity (ROE) as the dependent variables and the independent variables are Adjusted Capital to
Risk Asset Ratio (ACRR), Capital to Deposit Ratio (CTD), Capital to Net Loans and Advances Ratio (CNLAR),
Capital to Risk Asset Ratio (CRA) and Capital to Total Asset Ratio (CTAR). The empirical result demonstrated
vividly in the models that there is a positive long run dynamic and significant relationship between return on
asset and capital to risk asset ratio and capital to deposit ratio while others are negatively correlated. The
findings also revealed that there is bi-directional causality running from ROA to ACRR and ROA to CNLAR. We
therefore recommend that financial policies should be strengthened to deepen the capital base of Nigerian
Commercial banks to enhance bank profitability and sustain economic growth.
This document profiles and evaluates 25 sovereign wealth funds for their potential as long-term investors in sustainable infrastructure projects. It scores the funds based on 5 criteria related to their investment flexibility and capabilities. The top 10 highest ranked funds are then profiled in more detail based on their investment strategies, sustainability policies, geographic exposure, asset classes, and management capabilities. The profiles are used to further categorize the funds into a matrix based on their degree of investment flexibility and emphasis on sustainability, identifying four types of funds: committed, entrepreneurial, opportunistic, and observing. The overall aim is to better understand which funds may be better partners for sustainable infrastructure investments.
This document summarizes a presentation on implementing the Net Stable Funding Ratio (NSFR) liquidity framework. It discusses:
1) An overview of the NSFR and how it differs from the Liquidity Coverage Ratio in measuring long-term versus short-term liquidity;
2) How to build the NSFR into funds transfer pricing (FTP) logic by updating FTP systems to incorporate long-term funding costs and risks;
3) Integrating the NSFR into existing FTP and liquidity management systems through a liquidity transfer pricing framework that allocates liquidity costs and benefits.
The document summarizes a study on the Liquidity Coverage Ratio (LCR) across Indian banks. It finds that all banks in the sample meet the minimum LCR requirement of 60%. Over half of banks already meet the final 100% requirement. Public sector banks have an average LCR of 104.76% compared to 87.28% for private banks. The study analyzes IndusInd Bank's LCR components and finds its high cash outflows and low high-quality liquid assets result in a lower LCR compared to other banks. It recommends actions for IndusInd Bank to improve its LCR like increasing high-quality assets and reducing wholesale funding dependence.
(1) Diversified Funding: Problems with Steering Towards Long-Term Stable Funding; (2) Analysing the Best Internal Mechanism for Managing new Liquidity Requirements
DSP World Mining Fund - An Open Ended Fund Of Funds Scheme investing in Mining Companies through International Funds
This Open-ended Fund of Funds Scheme is suitable for investors who are seeking*:
1. Long-term capital growth
2. Investment in units of overseas funds which invest primarily in equity and equity related securities of mining companies
3. High Risk**
*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.
**Risk may be represented as:
Low: Investors understand that their principal will be at low risk
Moderately Low: Investors understand that their principal will be at moderately low risk
Moderate: Investors understand that their principal will be at moderate risk
Moderately High: Investors understand that their principal will be at moderately high risk
High: Investors understand that their principal will be at high risk
Nepal Rastra Bank introduced new consolidated directives in accordance with the BFI Act and Basel II principles to ensure financial stability and discipline in the Nepalese banking industry. The directives establish regulations in areas such as capital adequacy, loan classification and provisioning, credit concentration limits, accounting policies, risk management, corporate governance, compliance, investment policies, reporting requirements, and interest rates. Banks and financial institutions are responsible for complying with the 16 directives, which cover topics such as capital adequacy, loan classification, credit limits, accounting standards, risk minimization, governance, compliance, investments, reporting, transfers of promoter shares, consortium financing, credit information, reserves, branch expansion, interest rates, and financial resource generation
- The document provides an investment outlook and strategy for 2022, discussing themes of survival, sustainability, and the changing global order.
- It suggests 2022 may see a continuation of 2021 trends but different outcomes for investors as central banks withdraw support. Moderate returns should be expected.
- The new normal may include continued remote working, ESG as standard practice, and electric vehicles, while lower growth, rates, and inflation become accepted.
Econometrics Analysis of Capital Adequacy Ratios and the Impact on Profitabil...iosrjce
This paper examines the econometrics analysis of capital adequacy ratios and the impact on the
profitability of Commercial Banks in Nigeria from 1980 – 2013. The objective is to investigate whether there is
a dynamic long run relationship between capital adequacy ratios and the profitability of commercial banks.
Time series data were sourced from Stock Exchange factbook and financial statement of quoted commercial
banks and the Johansen co-integration techniques in vector error correction model setting (VECM) as well as
the granger causality test were employed. The study has Return on Asset (ROA), Return on Investment (ROI)
and Return on Equity (ROE) as the dependent variables and the independent variables are Adjusted Capital to
Risk Asset Ratio (ACRR), Capital to Deposit Ratio (CTD), Capital to Net Loans and Advances Ratio (CNLAR),
Capital to Risk Asset Ratio (CRA) and Capital to Total Asset Ratio (CTAR). The empirical result demonstrated
vividly in the models that there is a positive long run dynamic and significant relationship between return on
asset and capital to risk asset ratio and capital to deposit ratio while others are negatively correlated. The
findings also revealed that there is bi-directional causality running from ROA to ACRR and ROA to CNLAR. We
therefore recommend that financial policies should be strengthened to deepen the capital base of Nigerian
Commercial banks to enhance bank profitability and sustain economic growth.
South African Home Loans (SAHL) has originated residential home loans for six years, capturing approximately 4% of South Africa's mortgage market. SAHL also claims two-thirds of South Africa's mortgage securitization market. A recent management change replaced the co-founder CEO with an internal candidate, while maintaining the experienced management team. Financial results indicate SAHL is on track to be profitable in 2005 and cash flow positive by 2006. SAHL has grown its home loan book despite narrowing margins between interest rates offered to borrowers and banks' standard rates.
The document provides information on the DSP BlackRock Balanced Fund, including:
1) The fund combines equity and debt securities to provide wealth preservation from debt and growth potential from equity.
2) It benefits from active management and rebalancing to control risk and optimize returns.
3) The fund has a strong long-term track record, experienced managers, and robust risk management practices.
Eric on chinese banks value creation analysisEric Kuo
This study analyzed the 2012 annual reports of 18 representative Chinese banks to understand if their lending portfolios created shareholder value. The main findings were:
1,400
0
0
-150
-1,400
-250
-2,800
Low
0
10,000 20,000 30,000 70,000 80,000 90,000
Bank lending size [100Mn RMB]
Low
0
10,000 20,000 30,000 70,000 80,000 90,000
Bank lending size [100Mn RMB]
- The average risk-adjusted return on
CAMEL Analysis of top 5 public sector banks (12-3-2018)Raghuram Mogallapu
This document analyzes the financial performance of the top 5 public sector banks in India from 2013-2017 using the CAMELS framework. It provides background on CAMELS and outlines its components of capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk. Tables show the banks' individual and composite CAMELS ratings, with Indian Bank ranked highest and Canara Bank ranked lowest overall. The findings indicate Indian Bank had the highest capital adequacy, asset quality, earnings ability, and liquidity ability ratios compared to peers over the period studied.
Challenges of assets liabilities mangement under baselShah Naoaj Shahed
This document discusses liquidity risk management and regulatory requirements under Basel III. It begins by defining asset liability management (ALM) and its goals of arranging assets and liabilities without compromising liquidity or safety while maximizing profits. It then discusses various liquidity risk indicators required under Basel III like the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). Interest rate risk management tools like simple sensitivity analysis and duration gap analysis are also outlined. The document notes liquidity management was not fully addressed in Basel II but is covered more rigorously in Basel III through these new standards and ratios.
The document discusses Bangladesh Bank's regulations on risk-based capital adequacy (RBCA) for banks according to Basel III standards. It covers key aspects of the three pillars of Basel III including capital requirements, supervision/risk management, and market discipline/disclosures. The presentation provides details on capital ratios and buffers to be met under Basel III as well as guidelines for loan classification, provisioning, rescheduling, and down payments for restructuring. It emphasizes the importance of correct classification, adequate provisioning, and robust internal controls in ensuring banking stability and soundness.
Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other financial institution insurance, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Raymond James is not affiliated with the financial institution or the investment company. Material prepared by Raymond James for use by its advisors.
Greenfield Seitz Capital Management is a Dallas-based registered investment advisor founded in 1964 that manages $300 million using a mid/large-cap growth at a reasonable price strategy. The firm has a proven investment process focused on fundamental analysis, independent research, and identifying attractive long-term investment themes. Greenfield Seitz aims to outperform through a portfolio of 50-70 stocks that is well-diversified across sectors with no single position over 10% of assets.
The document provides information about pension fund management at the World Bank. It discusses the World Bank Treasury's activities managing over $120-140 billion in investments, including $18 billion in pension plan assets. It then provides an overview of the World Bank Pension Fund, which has $18 billion in assets, 14,400 active staff members, and 8,500 retirees. The rest of the document outlines the investment framework for managing the pension fund, including sections on governance structure, investment policy, risk management, performance measurement, and other areas.
The mutual fund industry saw a decrease in assets for April 2012, with starting assets of $669.2 billion, net sales of $2.3 billion, and a market effect of -$5.9 billion, resulting in ending assets of $665.6 billion. The top performing fund categories were Canadian fixed income balanced, global fixed income balanced, and Canadian dividend & income equity funds, while the worst performing were global equity, Canadian focused equity, and U.S. equity funds. Product developments in April included new fund launches focused on emerging markets, managed futures, and Canadian and global equities.
This document provides an overview of the implementation of Basel III capital standards in Bangladesh. It discusses key changes introduced by Basel III after the 2008 financial crisis, including strengthening capital requirements, introducing capital buffers, adopting a leverage ratio, and establishing liquidity standards. It outlines Bangladesh Bank's roadmap for phasing in the new requirements between 2015-2019. It also reviews the banking industry's progress in meeting existing Basel II capital requirements, finding industry capital levels are already close to meeting future Basel III standards.
Working Paper Insights from the South African ExperienceDr Lendy Spires
This document summarizes a study examining the linkages between financial inclusion and the other core objectives of financial stability, integrity, and consumer protection (referred to as I-SIP objectives) based on examples from South Africa. The study analyzes specific policies and regulations implemented in South Africa to understand how they considered and addressed potential risks and benefits across the I-SIP objectives. Based on these examples, the study proposes a methodology for policymakers to optimize I-SIP linkages by applying a principle of proportionality when designing financial inclusion policies and regulations. The methodology is summarized in seven guidance statements focused on inter-agency collaboration, assessing linkages, defining objectives, segmenting markets, collecting data, consulting stakeholders, and adapting over time based
This paper examines the relationship between portfolio manager ownership stakes in the mutual funds they manage and those funds' future performance. The paper finds:
1) Almost half of all managers have ownership stakes in their funds, though the average stake represents a modest percentage of assets under management.
2) Higher managerial ownership is positively associated with improved future risk-adjusted fund performance - performance improves by about 3 basis points for each 1 basis point of managerial ownership.
3) Both the component of managerial ownership predicted by other fund characteristics and the residual component are significant in predicting future fund performance, indicating managerial ownership provides new information to investors.
The document provides information on the KB Value Focus Korea Equity Fund, including its investment objective, strategy, portfolio statistics, performance, and top holdings. The fund seeks long-term returns through investing in undervalued Korean equity securities with stable growth potential. It has outperformed its benchmark since inception with an annualized return of 127.43% and a fund size of $1.43 billion as of June 30, 2016.
- Waddell & Reed Financial Inc. is a publicly traded investment management company with $1.5 billion in market capitalization and 84.7 million shares outstanding.
- They provide investment management services through distinct distribution channels serving retail, wholesale, and institutional clients. They have a dedicated network of over 2,000 financial advisors and a comprehensive family of mutual funds.
- As of Q1 2009, they have $47.6 billion in total assets under management, with 83% in equity funds and 13% in fixed income funds.
The document discusses the Basel Committee on Banking Supervision and the Basel Accords. It provides background on the Basel Committee, describing it as an organization established in 1930 that develops banking supervision standards. It outlines the three pillars of Basel II, which include minimum capital requirements, supervisory review, and market discipline through disclosure. The goals of Basel II were to make capital allocation more risk sensitive, separate and quantify operational and credit risk, and better align economic and regulatory capital.
110130 international pe_vc_valuation_guidelines_sep_2009_updateEvelyn Chua
The document provides guidelines for determining the fair value of private equity and venture capital investments. It defines key terms and outlines principles of valuation, including that fair value estimates the price at which an orderly transaction would occur between willing market participants. It also describes various methodologies that may be used to determine fair value, such as considering the price of recent investments, earnings multiples of comparable companies, discounted cash flows, and secondary transactions.
This document analyzes the operational due diligence frameworks used by over 275 global hedge fund allocators. It finds that there is substantial variety in the frameworks, with dedicated, shared, modular, and hybrid approaches all being used. Larger allocators tended to dedicate more resources specifically to operational due diligence. The study provides benchmarks for investors to evaluate the appropriateness of an allocator's operational due diligence framework.
The document summarizes the Standard & Poor's Mutual Fund Performance Persistence Scorecard for year-end 2006. The key findings are:
1) Very few funds consistently maintain top half or top quartile performance over long periods, with only 13.2% of large-cap funds repeating top half performance over 5 years.
2) Looking at longer timeframes, only 17.3% of large cap funds in the top quartile from 2001 remained there in 2006.
3) Bottom quartile funds have over a 40% chance of disappearing due to mergers or liquidations, compared to under 10% for top funds.
Credit availability in Canada 2014: Targeting an ideal capital structurelbobak
The majority of Canadian financial executives surveyed by the Canadian Financial Executives Research Foundation are more optimistic about their company’s ability to obtain sufficient capital to meet its financing requirements in the next year (whether these needs are short-term, long-term or equity based). Most financial executives surveyed said credit for working capital and growth financing is generally available to their organizations, according to the study, which was published by the research arm of Financial Executives International Canada (FEI Canada), and sponsored by EY. The report, entitled Targeting an ideal capital structure, is based on the results of an online survey of financial executives across Canada, which took place in June 2014. According to the study, even those for whom credit was less available this year, the expectation is availability will improve by the spring of 2015.
Examination of hedged mutual funds agarwalbfmresearch
Hedge funds have traditionally only been available to accredited investors while providing lighter regulation and stronger performance incentives compared to mutual funds. Recently, some mutual funds have adopted hedge fund-like strategies but remain subject to tighter regulation. This study examines the performance of these "hedged mutual funds" relative to both hedge funds and traditional mutual funds. It finds that despite using similar strategies as hedge funds, hedged mutual funds underperform due to their tighter regulation and weaker incentives. However, hedged mutual funds outperform traditional mutual funds, with the superior performance driven by those with managers having hedge fund experience.
South African Home Loans (SAHL) has originated residential home loans for six years, capturing approximately 4% of South Africa's mortgage market. SAHL also claims two-thirds of South Africa's mortgage securitization market. A recent management change replaced the co-founder CEO with an internal candidate, while maintaining the experienced management team. Financial results indicate SAHL is on track to be profitable in 2005 and cash flow positive by 2006. SAHL has grown its home loan book despite narrowing margins between interest rates offered to borrowers and banks' standard rates.
The document provides information on the DSP BlackRock Balanced Fund, including:
1) The fund combines equity and debt securities to provide wealth preservation from debt and growth potential from equity.
2) It benefits from active management and rebalancing to control risk and optimize returns.
3) The fund has a strong long-term track record, experienced managers, and robust risk management practices.
Eric on chinese banks value creation analysisEric Kuo
This study analyzed the 2012 annual reports of 18 representative Chinese banks to understand if their lending portfolios created shareholder value. The main findings were:
1,400
0
0
-150
-1,400
-250
-2,800
Low
0
10,000 20,000 30,000 70,000 80,000 90,000
Bank lending size [100Mn RMB]
Low
0
10,000 20,000 30,000 70,000 80,000 90,000
Bank lending size [100Mn RMB]
- The average risk-adjusted return on
CAMEL Analysis of top 5 public sector banks (12-3-2018)Raghuram Mogallapu
This document analyzes the financial performance of the top 5 public sector banks in India from 2013-2017 using the CAMELS framework. It provides background on CAMELS and outlines its components of capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk. Tables show the banks' individual and composite CAMELS ratings, with Indian Bank ranked highest and Canara Bank ranked lowest overall. The findings indicate Indian Bank had the highest capital adequacy, asset quality, earnings ability, and liquidity ability ratios compared to peers over the period studied.
Challenges of assets liabilities mangement under baselShah Naoaj Shahed
This document discusses liquidity risk management and regulatory requirements under Basel III. It begins by defining asset liability management (ALM) and its goals of arranging assets and liabilities without compromising liquidity or safety while maximizing profits. It then discusses various liquidity risk indicators required under Basel III like the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). Interest rate risk management tools like simple sensitivity analysis and duration gap analysis are also outlined. The document notes liquidity management was not fully addressed in Basel II but is covered more rigorously in Basel III through these new standards and ratios.
The document discusses Bangladesh Bank's regulations on risk-based capital adequacy (RBCA) for banks according to Basel III standards. It covers key aspects of the three pillars of Basel III including capital requirements, supervision/risk management, and market discipline/disclosures. The presentation provides details on capital ratios and buffers to be met under Basel III as well as guidelines for loan classification, provisioning, rescheduling, and down payments for restructuring. It emphasizes the importance of correct classification, adequate provisioning, and robust internal controls in ensuring banking stability and soundness.
Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other financial institution insurance, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Raymond James is not affiliated with the financial institution or the investment company. Material prepared by Raymond James for use by its advisors.
Greenfield Seitz Capital Management is a Dallas-based registered investment advisor founded in 1964 that manages $300 million using a mid/large-cap growth at a reasonable price strategy. The firm has a proven investment process focused on fundamental analysis, independent research, and identifying attractive long-term investment themes. Greenfield Seitz aims to outperform through a portfolio of 50-70 stocks that is well-diversified across sectors with no single position over 10% of assets.
The document provides information about pension fund management at the World Bank. It discusses the World Bank Treasury's activities managing over $120-140 billion in investments, including $18 billion in pension plan assets. It then provides an overview of the World Bank Pension Fund, which has $18 billion in assets, 14,400 active staff members, and 8,500 retirees. The rest of the document outlines the investment framework for managing the pension fund, including sections on governance structure, investment policy, risk management, performance measurement, and other areas.
The mutual fund industry saw a decrease in assets for April 2012, with starting assets of $669.2 billion, net sales of $2.3 billion, and a market effect of -$5.9 billion, resulting in ending assets of $665.6 billion. The top performing fund categories were Canadian fixed income balanced, global fixed income balanced, and Canadian dividend & income equity funds, while the worst performing were global equity, Canadian focused equity, and U.S. equity funds. Product developments in April included new fund launches focused on emerging markets, managed futures, and Canadian and global equities.
This document provides an overview of the implementation of Basel III capital standards in Bangladesh. It discusses key changes introduced by Basel III after the 2008 financial crisis, including strengthening capital requirements, introducing capital buffers, adopting a leverage ratio, and establishing liquidity standards. It outlines Bangladesh Bank's roadmap for phasing in the new requirements between 2015-2019. It also reviews the banking industry's progress in meeting existing Basel II capital requirements, finding industry capital levels are already close to meeting future Basel III standards.
Working Paper Insights from the South African ExperienceDr Lendy Spires
This document summarizes a study examining the linkages between financial inclusion and the other core objectives of financial stability, integrity, and consumer protection (referred to as I-SIP objectives) based on examples from South Africa. The study analyzes specific policies and regulations implemented in South Africa to understand how they considered and addressed potential risks and benefits across the I-SIP objectives. Based on these examples, the study proposes a methodology for policymakers to optimize I-SIP linkages by applying a principle of proportionality when designing financial inclusion policies and regulations. The methodology is summarized in seven guidance statements focused on inter-agency collaboration, assessing linkages, defining objectives, segmenting markets, collecting data, consulting stakeholders, and adapting over time based
This paper examines the relationship between portfolio manager ownership stakes in the mutual funds they manage and those funds' future performance. The paper finds:
1) Almost half of all managers have ownership stakes in their funds, though the average stake represents a modest percentage of assets under management.
2) Higher managerial ownership is positively associated with improved future risk-adjusted fund performance - performance improves by about 3 basis points for each 1 basis point of managerial ownership.
3) Both the component of managerial ownership predicted by other fund characteristics and the residual component are significant in predicting future fund performance, indicating managerial ownership provides new information to investors.
The document provides information on the KB Value Focus Korea Equity Fund, including its investment objective, strategy, portfolio statistics, performance, and top holdings. The fund seeks long-term returns through investing in undervalued Korean equity securities with stable growth potential. It has outperformed its benchmark since inception with an annualized return of 127.43% and a fund size of $1.43 billion as of June 30, 2016.
- Waddell & Reed Financial Inc. is a publicly traded investment management company with $1.5 billion in market capitalization and 84.7 million shares outstanding.
- They provide investment management services through distinct distribution channels serving retail, wholesale, and institutional clients. They have a dedicated network of over 2,000 financial advisors and a comprehensive family of mutual funds.
- As of Q1 2009, they have $47.6 billion in total assets under management, with 83% in equity funds and 13% in fixed income funds.
The document discusses the Basel Committee on Banking Supervision and the Basel Accords. It provides background on the Basel Committee, describing it as an organization established in 1930 that develops banking supervision standards. It outlines the three pillars of Basel II, which include minimum capital requirements, supervisory review, and market discipline through disclosure. The goals of Basel II were to make capital allocation more risk sensitive, separate and quantify operational and credit risk, and better align economic and regulatory capital.
110130 international pe_vc_valuation_guidelines_sep_2009_updateEvelyn Chua
The document provides guidelines for determining the fair value of private equity and venture capital investments. It defines key terms and outlines principles of valuation, including that fair value estimates the price at which an orderly transaction would occur between willing market participants. It also describes various methodologies that may be used to determine fair value, such as considering the price of recent investments, earnings multiples of comparable companies, discounted cash flows, and secondary transactions.
This document analyzes the operational due diligence frameworks used by over 275 global hedge fund allocators. It finds that there is substantial variety in the frameworks, with dedicated, shared, modular, and hybrid approaches all being used. Larger allocators tended to dedicate more resources specifically to operational due diligence. The study provides benchmarks for investors to evaluate the appropriateness of an allocator's operational due diligence framework.
The document summarizes the Standard & Poor's Mutual Fund Performance Persistence Scorecard for year-end 2006. The key findings are:
1) Very few funds consistently maintain top half or top quartile performance over long periods, with only 13.2% of large-cap funds repeating top half performance over 5 years.
2) Looking at longer timeframes, only 17.3% of large cap funds in the top quartile from 2001 remained there in 2006.
3) Bottom quartile funds have over a 40% chance of disappearing due to mergers or liquidations, compared to under 10% for top funds.
Credit availability in Canada 2014: Targeting an ideal capital structurelbobak
The majority of Canadian financial executives surveyed by the Canadian Financial Executives Research Foundation are more optimistic about their company’s ability to obtain sufficient capital to meet its financing requirements in the next year (whether these needs are short-term, long-term or equity based). Most financial executives surveyed said credit for working capital and growth financing is generally available to their organizations, according to the study, which was published by the research arm of Financial Executives International Canada (FEI Canada), and sponsored by EY. The report, entitled Targeting an ideal capital structure, is based on the results of an online survey of financial executives across Canada, which took place in June 2014. According to the study, even those for whom credit was less available this year, the expectation is availability will improve by the spring of 2015.
Examination of hedged mutual funds agarwalbfmresearch
Hedge funds have traditionally only been available to accredited investors while providing lighter regulation and stronger performance incentives compared to mutual funds. Recently, some mutual funds have adopted hedge fund-like strategies but remain subject to tighter regulation. This study examines the performance of these "hedged mutual funds" relative to both hedge funds and traditional mutual funds. It finds that despite using similar strategies as hedge funds, hedged mutual funds underperform due to their tighter regulation and weaker incentives. However, hedged mutual funds outperform traditional mutual funds, with the superior performance driven by those with managers having hedge fund experience.
Sourcing & Structuring Financing for JV and other Business FormsPeerasak C.
This document discusses sourcing and structuring financing for joint ventures and other business forms in Myanmar. It provides an overview of All Myanmar Investment Partners (AMIP) and its role advising investors. AMIP is part of Indochina Opportunity Partners (IOP), a private equity fund focused on opportunities in Southeast Asia, including Myanmar. The document outlines IOP's network and backing. It also discusses the challenges and opportunities of investing in Myanmar's developing business environment, and considers different options for structuring investments and sourcing financing, including from friends/family, family offices, corporates, and development institutions.
This document discusses sourcing and structuring financing for joint ventures and other business forms in Myanmar. It provides an overview of All Myanmar Investment Partners (AMIP) and its role advising investors. AMIP is part of Indochina Opportunity Partners (IOP), a private equity fund focused on opportunities in Southeast Asia, including Myanmar. The document outlines IOP's network and backing. It also discusses the challenges and opportunities of investing in Myanmar's developing business environment, and considers different options for structuring investments and sourcing financing, including from friends/family, family offices, corporations, and development institutions.
Innovative Approaches along the Private Equity Value Chain in Sub-Sahara Africaasafeiran
This document discusses private equity in sub-Saharan Africa. It conducted interviews with 43 stakeholders in the African private equity ecosystem to understand challenges and innovative approaches. The key challenges identified are high costs of operating due to fragmented markets and lack of infrastructure/talent, difficulties with fundraising due to reliance on development finance institutions previously, and limited deal flow due to the nascent industry and lack of "investment ready" companies. However, private equity firms have found innovative solutions along the investment value chain, such as specializing in niches, accessing new sources of capital, creating platforms for regional growth, and developing local talent. Overall, while the industry is growing more competitive, opportunities remain for firms that can operate effectively on the ground in Africa
The work is aimed primarily at ‘new to Africa’ actors/investors interested in sub-Saharan Africa rather than the larger scale, established classic LBO market in South Africa and elsewhere around the globe, hence the theme: “In the Shadow of the Giants". It is based on opinions of stakeholders in the industry to create an overview and facilitate a better understanding of the challenges they face and the innovative approaches to the business model that have been made to deal with them.
Balance Between Regulation and Growth - Implementation of Basel III in AsiaFung Global Institute
Basel III implementation in Asia faces several key issues and concerns:
1) Potential for synchronized global recession if Basel III constrains Asian growth by limiting banks' ability to support the real economy.
2) Risk weightings are biased against Asian banks as they favor advanced risk models Asian banks have not fully developed.
3) Asia has its own banking development agenda that does not perfectly align with Basel III timeline and level of regulation. National discretion is needed.
The document is a guide published by Private Equity International that ranks the top 100 private equity fund managers in the Asia-Pacific region based on the amount of capital raised over the past 5 years for investing in the region. China is home to nearly half of the top 100 managers and has attracted the most capital, around $76 billion. The largest funds raised include KKR Asian Fund II at $6 billion and RRJ Capital III at $4.5 billion. In total, the top 100 managers raised $181 billion for Asia-Pacific investing between 2011-2016.
The document is a guide published by Private Equity International that ranks the top 100 private equity fund managers in the Asia-Pacific region based on the amount of capital raised over the past 5 years for investing in the region. China is home to nearly half of the top managers and has attracted the most capital overall. The largest funds raised include KKR Asian Fund II and RRJ Capital III. Limited partners prefer managers with strong returns, teams, and governance who can adapt to changing markets in the region.
Cuhk advd prog on basel iii sheng (final)Andrew Sheng
Basel III aims to standardize minimum capital and liquidity standards globally, but its implementation in Asia faces several issues and concerns:
1) Tighter standards could potentially slow Asian growth and trap the global economy in a synchronized recession if Asia's access to credit is constrained.
2) Basel's risk-weightings favor advanced banks and are biased against Asian banks, as Asian banks are less sophisticated and rely more on standard models which automatically assign higher capital costs compared to European banks.
3) Credit ratings are also biased against Asian banks and economies, as they have lower sovereign ratings which translate to much higher capital requirements to support the same amount of loans or bonds. National discretion and priorities need to be considered for
The document discusses the problems facing equity compensation plans in volatile market conditions. It notes that options, RSUs, and performance plans have all gone "underwater" as stock prices have declined significantly. This has led to shareholder value losses, revenue reductions, and widespread layoffs. Questions are raised about restoring equity value through actions like option exchanges that may raise governance concerns. The status of various equity award types is assessed, and the need to redefine the purpose and effectiveness of equity compensation is discussed.
Corrine Figueredo on Cleantech InvestinginfoDevSlides
The document discusses how the International Finance Corporation (IFC) promotes sustainable economic development and poverty reduction in developing countries by supporting cleaner technologies. The IFC uses various tools across the innovation chain, from product R&D to mass market deployment, including debt, equity, private equity funds, direct venture investing, carbon finance, advisory services, and concessional finance. It also uses early stage funding, capital cost buy downs, catalyzing product standards, convening suppliers and investors, consumer demand mapping, and risk sharing facilities to support private investment in clean technologies.
This document provides an overview of the International Accounting Standards Board (IASB) framework for financial reporting and standards.
It begins with an introduction to the IASB and the need for a common set of global accounting standards to improve comparability. It then discusses key aspects of the IASB conceptual framework, including its purpose and status, users and objectives of financial reporting, qualitative characteristics of useful financial information, and the elements of financial statements.
The document also provides a high-level summary of experiences with IFRS adoption in Canada and the US. It concludes with a brief look ahead at ongoing projects by the IASB and FASB to further improve and converge accounting standards internationally.
1) Selecting good mutual funds is difficult as only 20% outperform over the long run and 40% of funds from 10 years ago are no longer in existence.
2) Both qualitative and quantitative factors must be analyzed to pick funds, including the people and investment process, fees, performance history, and consistency with the stated investment strategy.
3) A disciplined due diligence process considers the experience, philosophy, ownership structure, incentives, and research capabilities of the fund managers as well as the quantitative metrics of costs, returns, risk levels, and turnover of the fund.
1) Selecting good mutual funds is extremely difficult as only 20% may outperform their benchmark over the long run and 40% of funds from 10 years ago are no longer in existence.
2) Both qualitative and quantitative factors must be analyzed to select funds, including the people and process behind the fund, fees, performance metrics, and consistency with the stated investment philosophy.
3) Most active funds underperform their benchmarks, so investors must decide whether to pursue an active or passive strategy based on their goals, beliefs about market efficiency, and ability to identify skilled managers. Choosing funds requires extensive research and analytical skills.
Similar to Asia pacific-private-equity-2010-fund-terms-survey (20)
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
2. April 2011
Survey highlights: Fund sample by investment strategy
• Annual management fees in the Asia Pacific are Distressed /
special situations / other
higher than the global average, likely reflecting
smaller average fund sizes in Asia and certain fixed 12% Venture
costs of fund management irrespective of fund size; 14%
Buyout
• Almost three-quarters of the respondent Asia 11%
Pacific funds currently grant a 100% management
fee offset, compared with less than half in the 2009
Survey, reflecting the greatest year-on-year shift in
fund terms;
• Demonstrating best practices as per the ILPA
Growth
guidelines, 84% of Asia Pacific private equity funds
follow a European-style “fund-by-fund” distribution 63%
waterfall and 91% have a key person clause in place; Fund sample by geographic focus
• Over half the funds surveyed lack a no-fault divorce Pan-regional Australia/New Zealand
clause, although voting thresholds for those which 14% 14%
do make such provisions compare favorably to the
global average; and Southeast Asia
13%
• Of the 44% of China-focused GP respondents that Greater China
manage parallel Renminbi and US Dollar funds, 60% 21%
allocate investments between the two purely at the Korea
discretion of the GP. 9%
Japan
Survey information:
2%
Indian Subcontinent
The information in the Survey has been derived from
responses to a questionnaire sent by Squadron Capital 27%
to over 450 Asia Pacific GPs, with the Asia Pacific region
defined as including Australasia, Greater China, the
Indian subcontinent, Japan, Korea and Southeast Asia Fund sample by target fund size
(“ASEAN”). Following the removal of GPs that were not
actively fundraising during 2010 and largely incomplete $1 billion and
responses, the Survey results cover 94 Asia Pacific GPs above
$500-999 Less than
that either achieved a final closing during 2010 or were 4%
actively fundraising as at 31 December 2010. million $100 million
13% 20%
For funds which were still being raised as at 31
December 2010, the terms stated by the relevant GPs
may not reflect what are or will be the final versions
of the limited partnership agreements or constitutional
equivalents thereof. Accordingly, the actual final terms
and conditions agreed upon for such funds within the
Survey - and therefore for the sample size as a whole –
will likely be more LP-friendly than the study suggests.
$100-499
The summary details of the sample funds have been million
displayed in the charts on this page. 63%
58%
2
3. April 2011
Management fees Comparative management fees
Management fees (%)
Management fees continue to be a key area of
focus for LPs globally, particularly with respect to
the alignment of interests and incentivization of >2%
GPs to earn their fees through carry rather than
annual management income.
Annual management fees in the region are in 2%
general higher than those elsewhere in the world,
though this may reflect the overall smaller fund
sizes in the Asia Pacific. Despite higher fees, funds
<2%
in the region might not necessarily be generating
annual fee income levels in excess of their GPs’
likely cost bases, or what the ILPA Principles
refer to as “reasonable operating expenses and 0% 20% 40% 60% 80%
reasonable salaries,” as the majority of funds that % of funds
are charging annual fees in excess of 2% are sub- Asia Pacific average Global average*
$250 million in size.
* Source: 2011 Preqin Global Private Equity Report
Management fees by fund size
Management fees (%)
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
0-99 100-499 500-999 > 1,000
Fund size ($ million)
Note: Private equity fund fees have two components – an annual management fee and a share of the profit.
3
4. April 2011
Management fee offsets Fee income offset (%) against management fee
“Transaction, monitoring, directory, advisory, % of funds
80%
exit fees and other consideration charged by the
general partner should accrue to the benefit of 70%
the fund” 60%
50%
(ILPA Private Equity Principles) 40%
30%
Management fee offsets has been the category 20%
that has seen the greatest shift since the 2009 10%
Survey, with almost three-quarters of Asia Pacific 0%
funds now granting a 100% fee offset, compared 59% or less 60-99% 100%
with less than half in the previous Survey. Fee income offset (%)
Asia Pacific average Global average*
This proportion is also significantly in excess of the
global average, where less than 40% of funds are * Source: 2011 Preqin Global Private Equity Report
currently in line with what ILPA regards as best
practice.
Note: In addition to management fees, GPs in some cases also derive income from underlying portfolio companies
(through advisory fees, directors’ fees and so forth) as well as from other sources.
4
5. April 2011
Distribution waterfalls
Carry structure (Asia Pacific sample)
“A standard all-contributions plus preferred-
return-back-first model must be recognized as a Deal-by-
best practice” deal
16%
(ILPA Private Equity Principles)
One issue where Asia Pacific private equity fund
terms are already by and large in line with best
practice is the distribution waterfall, where
market practice in the region follows a European- Fund
style “fund-by-fund” rather than US-style “deal- level
by-deal” approach. This varies according to fund
84%
strategy, however, with a disproportionate number
of venture capital funds in the Survey applying
deal-by-deal waterfalls.
Carry structure (Global sample*)
Deal-by-
deal
28%
Fund
level
72%
* Source: 2010 Preqin Global Private Equity Report
Note: Distribution waterfalls govern the order in which the proceeds from the sale of investments is distributed.
Under a fund level distribution waterfall, investors would be repaid all of the amount they invest into a fund
plus a minimum profit hurdle before GPs start becoming eligible for their carry (the term used for incentive
payments). Under a deal-by-deal distribution waterfall however, LPs could theoretically have to start paying out
carry to GPs even though the LPs themselves have not been repaid all of their original capital investment.
5
6. April 2011
Preferential fee terms Equality of fee/carry terms versus preferential deals
% of funds
There has been an incipient trend in the private
100%
equity industry globally for certain GPs to offer
differential fee or carry terms to a subset of 80%
investors for reasons of relationship (such as fund
sponsors or parent organizations), commitment 60%
size (in the case of large anchor investors) and/or
timing of entry (in particular for first close LPs). 40%
20%
The adoption of such an approach may well
enable a GP to kickstart a fundraising process
0%
and/or attract large commitments, but at the
Yes, all LPs pay the No, certain LPs pay No, certain LPs pay
expense of potential difficulties further along in
same fees and carry a lower management a lower carry
the fundraising process as some LPs may view the fee
existence of such deals adversely. For a GP, there
are also obviously the financial implications of
offering such fee or carry discounts.
While the vast majority of funds in the Survey offer
all LPs consistent fee and carry terms, there are
a small number which have granted preferential
terms to a subset of investors. Interestingly, of
the funds which offer differential carry terms
for certain LPs, the majority of these are India-
focused funds.
6
7. April 2011
No-fault divorce No-fault divorce clause in place
“No fault rights upon a two-thirds in interest vote
of limited partners for the removal of the general
partner”
(ILPA Private Equity Principles)
No Yes
51% 49%
The presence and nature of no-fault divorce
clauses in the Asia Pacific region as a whole is a
matter which is still significantly short of what the
ILPA regards as best practice.
Over half of the funds in the Survey lack a no-fault
divorce clause, though closer analysis of the data
set indicates that this is disproportionately the
case amongst funds which have not yet achieved a
final close as at the end of 2010.
Even for those funds that do have such clauses,
the voting thresholds are generally higher than
the ILPA’s recommended two-thirds figure (though
lower than the global average), with 75% being the % vote required for no-fault divorce
most common threshold. Vote required (%)
90% +
80-89%
70-79%
50-69%
0% 20% 40% 60% 80%
% of funds
Asia Pacific average Global average
Note: A no-fault divorce clause refers to the ability for investors to terminate the management agreement
between the fund and the GP, which in the ordinary course can often run for 10 or more years.
7
8. April 2011
Key person provisions Key person clause in place
Key person clauses remain a key area of focus in No
many of the Asia Pacific private equity markets, 9%
perhaps more than elsewhere. The high volatility
of Asia Pacific markets combined with the fact
that many Asia Pacific GPs have not as yet gone
through a full investment cycle means there is a
lower opportunity cost for teams or team members
leaving or spinning out of their existing firms.
Indeed, a significant number of spinouts have
occurred during the course of 2010 and 2011 to
date.
Yes
In addition, a greater proportion of GPs in the 91%
region continue to be overly dependent on a
single founder or individual compared with the
more institutional partnership structures of GPs
in established markets, which increases the risk
of problems should such an individual leave or be
unable to continue with the GP.
While the majority of funds within the sample size
are in line with the revised ILPA Principles on this
matter and have a key person clause in place, a
minority of funds are not.
8
9. April 2011
Fund suspensions on trigger of key person
Automatic suspension of investment
clause period if key person clause is triggered
“Automatic suspension of investment period,
which will become permanent unless a defined
super-majority of LPs in interest vote to re-
instate within 180 days, when a key-person event
No Yes
is triggered or for cause”
51% 49%
(ILPA Private Equity Principles)
What happens in cases where the key person clause
is triggered?
If suspension is automatic:
Approximately half the funds within the data set % of LP interests or advisory board required
apply best practice automatic suspension of the to lift the suspension
investment period, while the other half requires
an LP or advisory board vote in order to suspend or
% of funds
terminate the fund.
35%
30%
For suspensions which are not automatic, the
25%
median threshold of 75% is a surprisingly high 20%
figure. 15%
10%
Where the suspension is automatic, lifting of 5%
the suspension can generally be achieved by the 0%
approval of either a simple majority or two-thirds 51% 67% 75% 80%
of LP interests or the advisory board. Practice in
% LP interest or advisory board vote required
the Asia Pacific region is thus broadly in line with
standard practice elsewhere in the world.
If suspension is not automatic:
% of LP interests or advisory board required
to suspend/terminate
% of funds
60%
50%
40%
30%
20%
10%
0%
51% 67% 75% 80%
% LP interest or advisory board vote required
9
10. April 2011
Annual limitations on capital calls
Annual restrictions on investment activity
Vintage diversification is a key tenet of private
Yes
equity investing. This is arguably even more true 11%
in the case of many of the markets within the Asia
Pacific region, where historically higher levels of
market volatility imply that timing has an even
greater than usual impact on returns.
Despite this, barely 10% of Asia Pacific private
equity funds have per annum limits on capital
calls - approximately the same percentage as last
year’s Survey (8%) – with most GPs and LPs taking
No
the view that full temporal flexibility in investing
89%
becomes more rather than less important in the
volatile markets within the region if they are to
invest opportunistically to maximize returns.
10
11. April 2011
Ability for / limitations on public market Investment restrictions in
investing publicly listed companies
Private investments in public entities (“PIPEs”)
remain a topic of significant debate within the
region, being viewed by members of the private
equity community – both GPs and LPs – either
with disdain, reluctant acceptance or as unique
No
opportunities to generate value.
41%
A majority of funds (59%) in the 2010 data set have Yes
formal restrictions on PIPEs, which is a statistically 59%
similar proportion when compared with the 2009
data reported in last year’s Survey (57%).
Where restrictions are in place, there appears to
be a polarization of the market between funds
with ceilings of 10% or less and those with ceilings
of 20% or more (at the expense of those with a 15%
ceiling).
Limitation of investments in listed companies
% of funds
35%
30%
25%
20%
15%
10%
5%
0%
0% Up to 10% 15% 20% 25% or
higher
Public investments ceiling as % of fund
Note: Where applicable, the ceilings above represent the proportion of each fund that can be invested in publicly
listed companies, beyond which any such investments can be made only with the approval of the fund’s LP
advisory board.
11
12. April 2011
RMB fund managers’ potential issues relating
to allocation policy Do you manage RMB-denominated private equity
fund(s) as well as USD-denominated fund(s)?
As it becomes increasingly common for China-
focused GPs to manage parallel Renminbi and
US Dollar funds, the topic of managing potential
conflicts of interests between parallel funds has Yes
become a key matter of concern for LPs globally. 44%
No
56%
In excess of 40% of China-focused GPs who
responded to the Survey now manage parallel
Renminbi and US Dollar funds. Of these, 60%
allocate investments between the two funds at the
discretion of the GP.
The fact that a large proportion of China-focused
GPs managing parallel funds have discretion over
the allocation procedure could indicate on the
positive side that LPs have taken a pragmatic view
of the issue, and on the negative side that LPs may
in certain cases be too willing to accede to these
points in order to ensure access to certain GPs in What is the basis of allocation of opportunities
the market. between the RMB and USD funds?
Strictly pro rata for all
encouraged/permitted
sectors
40%
Purely at the
discretion of the GP
60%
Note: The pro rata category also includes GPs which to a large extent avoid the potential conflicts of interests
issue by having entirely separate teams managing each of the Renminbi and US Dollar arms.
12
14. April 2011
ABOUT THE EMERGING MARKETS PRIVATE EQUITY ASSOCIATION (EMPEA)
The Emerging Markets Private Equity Association (EMPEA) is an independent, non-
profit, global industry association that catalyzes private equity and venture capital
investment in the emerging markets of Africa, Asia, Europe, Latin America and
the Middle East. EMPEA’s more than 250 members comprise a broad array of fund
managers, institutional investors and other industry stakeholders, representing
more than 50 countries and over US$1 trillion in assets under management.
The Emerging Markets Private Equity Association (EMPEA) was founded in 2004 by a
handful of visionaries at the heart of the industry who shared the belief that private
capital has the potential to unleash economic growth in emerging markets while
simultaneously generating strong returns for investors.
EMPEA is unusual among membership associations in producing proprietary research
that provides an authoritative global view of the market in support of our mission.
We leverage the scope and connectivity of our membership to help deliver research
and insight built on solid empirical data. We also organize conferences and unique
member events around the world, often in partnership with global media brands
where the EMPEA network facilitates powerful business networking opportunities.
EMPEA provides the asset class with a voice on key public policy issues to global
regulators and policymakers, and works to advance the dialogue on emerging
markets opportunities and challenges among institutional investors.
For more information, please visit www.empea.net.
Emerging Markets Private Equity Association
EMPEA Headquarters
1055 Thomas Jefferson St NW
Suite 650
Washington, DC 20007, U.S.A.
Tel. +1.202.333.8171
EMPEA Asia Headquarters
Suite 3205
No. 9 Queen’s Road
Central, Hong Kong
Tel. +852.3713.4879
14