1、1,Fortune Private Equity Fund I,Fortune Venture Investment Group 2009.05.20 version,2,Fund I Overview,Target Target fund size at US$200M;4 to 8 investments within 3 years; Average investment amount per deal ranging from US$20M to US$80M, and 7 years fund life with 20% + net IRR, Fund multiple at 2.5
2、X.FocusEngage direct investment in Taiwan public SMEs through PIPE; andConstruct M andRepackage overseas Taiwanese enterprise and IPO in Taiwan.Re-capitalization or relocation companies from one capital market to another,3,(I) WHY TAIWAN,Significantly undervalued stock market ; perfect timing for va
3、lue investment approach Solid fundamentals in economic prospect and technology production / application / innovationThe somewhat subsided political tension with China is going to lead to possible economic cooperation and deregulation,4,Less Impact on Financial Tsunami in Greater China Region,Under t
4、he global financial crisis, Greater China Region provides safer and with growth potential on investment.,Economic Growth in 2008 and Estimation in 2009,Source: Ministry of Economic Affairs, R.O.C. / IMF,5,Taiwan Robust Competitive Edge,Facts about TaiwanPopulation: 23 MillionAverage income per capit
5、a: US$15,276 (2008) No. 1 High-tech product in Global Market: IC Foundry(68%), IC Packaging and testing(63%), Notebook PC(89%), Mother Board(76%), WLAN(87%), Cable Modem(93%), SOHO Router(83%), Monitor(39%), Mask ROM(93%), Server(88%), TFT LCD(46%), Optical Disk(68%),6,Taiwan Stock Market is Signifi
6、cantly Undervalued,TAIEX stalled while the rest soared,7,Company Valuation Suffered from Stagnant Stock Index,Taiwanese companies are significantly undervalued compare with neighboring countries :,Asia Main Board,(Unit:USD Billion)Mar. 31, 2009,8,The Ease of Political Tension with China,The new gove
7、rnment in Taiwan is eager to build economic partnership with MainlandTourism industry will be the first to benefit from deregulation, while direct flight between Taiwan and China took place in February 2009 alreadyChances for economic cooperation agreement (similar to HKs CEPA) and peace accord are
8、expected to be accomplished in 2Q/2009 (see Appendixfor detail)More open regulations are underway to attract Taiwanese entrepreneur back to TaiwanApproximately US$160B of Taiwanese capital parked oversea is expected to flow back to Taiwan,9,Future Prosperity of Taiwan,Taiwan Stock Market is likely t
9、o follow the pattern of HK,Government of Special Administrative Region was founded,911 Terrorist Attack,Signed “Treaty of Closer Trade” with China,DPP took office in March, 2000,Mar. 31, 2009,10,(II) Why Fortune,Experienced management team to generate quality deal flow and add-on value to the portfo
10、lio companiesTop 3 reputable management company in Taiwan for over a decadePowerful connection with industry leaders in mainstream sectorsWell established branch offices in Greater China RegionWith proven track record in PE investment,11,Taiwan Fund ($179M) 1996Singapore Fund($55M) 2000US Fund ($22M
11、) 2000China Fund ($71M) 2001,198 Portfolio Companies64 IPOs, 13 Mergers in Taiwan, U.S.A., Singapore, China, and 17 through block trade,Fortune Venture Investment Group,The Fortune Venture Investment Group was founded by James Chew in 1995. Fortune encompasses26 full time staff and 12 investment pro
12、fessionals.Offices in Taiwan, China, US and Singapore.The following funds have been fully invested:,(As of Mar. 31, 2009),12,Fortune Team,Fund I will be managed by the team of experts:James Chew：Founder of the management company, with 16 years of industry experience and 20 years in direct investment
13、. Jason Chen：Executive Vice President of Taipei office, with 10 years of experience in hi-tech industry and 8 years of direct investment. Jack Tao: Executive Vice President of Taipei office, with 17 years direct investment experience and 4 years in investment banking . Tao manages most of the post i
14、nvestment. Winnie Chang: Investment Manager of Taipei office, with 6 years direct investment and banking experience.The add-on value supported by Venture PartnersQunicy Lin：Former Senior Vice President of TSMC, the largest IC foundry in the world, with over 30 years of high tech experience and power
15、ful connections in Taiwan.Jerry Chang：Former CEO and Chairman of OPTi, an NASDAQ listed IC design house, with over 25 years high tech experience in Silicon Valley and good connection in Greater China.Detail biographies of team members are in the Appendix ,13,Ability to Add Value,Fortune Venture Inve
16、stment Group adds value to this private equity fund through:Powerful industry connections and resourceful network (see Appendix ) through existing LPs and portfolio companiesSecuring exclusive deal flowsLeveraging Investment Teams expertise in Semiconductors, Communication, Displays, Optoelectronics
17、, IT enabled applications, and Solar Energy.Management team and talent pools capability to improve operations of investee companies (see Appendix ).Divestment experience gained from 63 IPOs, 13 mergers, and 16 through block trade over the past 10 years.,14,Powerful Connection in All Mainstream Secto
18、rs,A) Hi-Tech,B) Financial Institutions,C) Traditional Industry,YASUDA,AETNA / ING,15,Private Equity Nature of Fortunes Investments,While Fortunes core investment was in venture capital,more than 30% of Fortunes investments are privateequity in nature. Examples include:Mergers : USI and UICC merged
19、into UMC, Fortune invested US$2.1M and divested US$12M (5.7X, IRR 67.8%)PIPEs : invested US$1.07M in Wellypower Optronics Corp. during its IPO and divested US$2.45M in one month (2.3X, IRR 130%)Divestitures of non-core divisions of larger company: Invested US$3.3M in Arima Communication and divested
20、 US$6.8M (2X, IRR 18.3%)Later Stage Investment : Invested US$3.0M in Mustang Industrial and divested US$5.0M (1.6X, IRR 23.3%)Invested US$4.1M in Amtran Technology and divested US$10.9M (2.6X, IRR 63.1%)The abovementioned PE investments overall IRR reached 55.3% with multiple at 2.74X note: see Appe
21、ndix for detail performance,16,(III) Why Fortune Private Equity Fund I,Unique strategies to bring investors highly liquidated projects and well balanced risk and return portfolioInvest in niche opportunities among undervalued SMEs and to boost PE ratio through M&ADeals on the pipeline have been care
22、fully evaluated with high transparency and are ready to be invested (See Appendix for detail description),17,M&A Gains Popularity Across Industries,Year,transaction amount (US$：100 Million),Source : Ministry of Economic Affairs, R.O.C.,18,Recent M&A Transactions in Taiwan,19,Recent M&A Transactions
23、in Taiwan,20,Technology Companies Receive Higher P/E in TW,Source : SinoPac Securities,Taiwan Stock Market is in favor of High-Tech Companies,21,Summary of Key Terms,Fund Size is at US$200MFund life is 7 years, the initial 3 years is set as investment period. Average holding period is 3 to 4 years.T
24、argeted Net IRR : 20%.Management fee : 2.5% of the committed capital within the investment period.2.5% of the cost of on-hand portfolio within the divestment period.Carry : After the return reach committed capital, the profit will be split 20% to 80% respectively between management company and LPs.,
25、22,Appendix - Peaceful Resolution with China,Investment restrictions to China by Taiwanese government are expected to be liftedInvestment protection treaty and tax treaty are expected to be signed by China 7 airports in Taiwan and 5 airports in China were opened for the policy of direct flight in 4Q
26、/2008Economic cooperation between Taiwan and China will dramatically boost Taiwans long term competitiveness,23,Appendix II Major Connections,24,Appendix III - Investment Team,James Chew, Managing Partner, 59 (VC-20 years, industry-15 years) Chew is the founding Chairman & CEO of Fortune Venture Inv
27、estment Group(FVIG) since 1995, with offices in Taipei, Silicon Valley and Singapore. In 2001, Chew founded China Merchants & Fortune Assets Management Ltd. in Hong Kong and Shanghai to further explore the venture investment in China. FVIG has US$300M funds under management. Out of the 198 portfolio
28、 companies, 64 companies have been successfully brought to IPOs in USA, Taiwan, Singapore and Hong Kong Stock Exchange. Chew is also the founding director of several high-tech companies including UTAC (IC testing company and listed in Singapore) and Sintek (color filter for TFT-LCD and listed in Tai
29、wan). In the past 3 years, Chew has led more than 13 M&A cases, and formed strategic alliance between investors/partners and the portfolio companies. Before founding FVIG, Chew was the President of H&Q Taiwan and was responsible for the investment in Greater China region, which includes Taiwan, Hong
30、 Kong and China (1989-1995). He managed two Taiwan funds ($50M) and co-managed one Asia Pacific fund ($75M) as well as one China Dynamic Growth fund ($86M). In 1995, the two local funds ranked the first and the sixth most profitable funds respectively among top 500 companies in the service industry
31、in Taiwan. Chew is a veteran of VC/ PE industries in the Asia Pacific region. Prior to H&Q, Chew was the Founder and Director General of National Standard Lab. of Taiwan (1985-1989). Chew joined the Electronic Research and Service Organization of Industrial Technology Research Institute (ITRI) in 19
32、75, and participated in the National IC project and National Computer project in 1976 and 1978. The mission of the projects was to transfer IC technology and computer technology from the USA to Taiwan. He became a pioneer of Taiwan IC/IT industry, and transferred the technology from ITRI to found th
33、e high-tech start-up company in Hsinchu Science Park. Prior to joining ITRI, Chew was the Chief Engineer of ITT-Unitron, the company focused mainly on IC testing/packaging business. Chew received his BS in Electronic Engineering from National Chiao-Tung University Taiwan and MS in the Management of
34、Technology from Massachusetts Institute of Technology(“MIT”) in USA. He served as Executive Director of Taiwan Venture Capital Association. Chew is also the Chairman of Alumni Association of National Chiao-Tung University and President of MIT Taiwan Alumni Association. Chew received Eminent Alumnus
35、Award of National Chiao-Tung University in 1998.,25,Appendix III - Investment Team,Jason Chen, Partner, 47 (VC-8 years, industry-12 years) Chen is the EVP of FVIG and he has been with the Group since 2002. Chen is on the investment committee, who actively searches for investment opportunities in Tai
36、wan and Greater China Region. Prior to joining FVIG, Chen had twelve years of industrial experience in semiconductor companies with senior management positions at Winbond Electronics Corp. (TSE: 2344), Kendin Communications Inc. (Sold to Micrel Semiconductor in 2001) and Micrel Semiconductor Taiwan
37、Office ( NASDAQ : MCRL). His twelve years industrial experience gives him extensive knowledge of engineering, sales, marketing, and operations fronts. Chens investment expertise covers Semiconductors and Communications. He is currently on the Board of Directors of six companies including EON (flash
38、memory chip design house), Rafael (IC design), eLCOS (IC design), Arbor (IPC), Macro Block (LED driver IC design house) and Apicon (Brightness enhancement film for TFT-LCD). Chen holds an MS in Electrical Engineering from the University of Houston in the USA, and a BS in Control Engineering from Fen
39、g Chia University, Taiwan.,26,Appendix III - Investment Team,Jack Tao, Partner, 49 (VC-17 years, investment banking-4 years) Tao has been a VC/PE investment specialist since 1992. He is EVP of FVIG, responsible for Post Investment Management. Tao has been closely involved with more than thirty new t
40、echnology based ventures, over one third of which are now publicly traded companies. Investment focused on high tech sectors, such as semiconductors, telecommunication, optical storage, material science, and IT products. Tao specifically insisted on investing in Optical Media Industry when Taiwan re
41、presented less than 10% of the worldwide market share has paid off. Taiwan now represents 80% world market share and one of the companies Tao invested in 1997 has become the first tier player in the world. Tao worked for Grand Cathy Security as an underwriter in 1988, the largest underwriter in Taiw
42、an at the time, with well over 80% market share. Tao took both TSMC (semiconductor foundry) and Oriental Semiconductor (semiconductor packaging and testing) public, and has engaged in many M&A cases which lead to successful mergers. Tao was recruited to join H&Q by Chew in 1992. Tao received his BA
43、in Accounting from the New York Institute of Technology, and Masters in Finance from Drexel University.,27,Appendix III - Investment Team,Winnie Chang, Investment Manager, 34(VC-6year) Chang has been with FVIG since 2005. Prior to FVIG, Chang led the Digital Content Industry Promotion Office under M
44、inistry of Economic Affairs in Taiwan. As the head of the Digital Content Industry Promotion Office, Chang assisted numerous companies to raise funds from governmental agencies and Venture Capital. Chang is very familiar with digital content and new media industry in Greater China. Chang was assigne
45、d to Japan on behalf of the Ministry of Economic Affairs of Taiwan between 2003 and 2004, to promote international cooperation and to lead funds to investment in Taiwan. Chang served as a Financial Specialist at Direct Investment Dept. for Industrial Bank of Taiwan during 2000-2003, where she specia
46、lized in investment system control, legal and financial investment consultation. Changs expertise in seeking investment opportunities and collaborate efforts of public and private financial institutions ensure effective consolidation of start-ups. Chang holds an EMBA from Yuan Ze University in Taiwa
47、n, and a B.S. in Electrical Engineering from Tung Nan Institute of Technology, Taiwan.,28,Appendix III - Investment Team,Venture Partners1. Quincy LinProfessional Experience:Chairman and CEO, Neo Solar Power CorporationSenior Vice President, Taiwan Semiconductor Manufacturing Corp. (TSMC)Senior Mana
48、ger, AT&T Bell Labs at Holmdel, New Jersey, U.S.A.Assistant Professor, Summerfield School of Business of University Kansas Education:Doctoral degree in Business Administration, University of Kentucky, U.S.A.MBA & B.S.E.E., National Chiao Tung University, Taiwan,AccomplishmentDuring the Terms as VP o
49、f corporate marketing and sales in TSMC, the companys revenue grew from US$26M to US$1.44BFounder and chairman of Taiwan High-Tech Industry CIO AssociationStanding Board Director of Taiwan Semiconductor Industry AssociationStanding Board Director of HsinChu Science Park Industry Association Distinguished Alumni of National Chiao Tung University (NCTU),
