Inside Perspectives: An Interview with Macquarie’s Robert Thorpe (July 2011)
Publication Date: July 2011
Source: EMPEA
Robert Thorpe, Managing Director of Macquarie Infrastructure and Real Assets (“MIRA”), discusses the opportunities and challenges of being a global infrastructure investor across both developed and emerging markets. Robert is focused on MIRA’s emerging markets infrastructure funds business and is directly involved in the management of Macquarie’s Indian Infrastructure business. MIRA is a leader in specific asset class investor funds, including Infrastructure and Real Estate, with assets under management of US$106.4 billion.

EMPEA: The Early Days to Today – A Profile of Roger S. Leeds (July 2011)
Publication Date: July 2011
Source: EMPEA
Roger S. Leeds, one of EMPEA’s key founders and outgoing Chairman of the Board, is well positioned to provide a unique perspective on how EMPEA has flourished in parallel with a resurgence of interest in the asset class. In this article, Roger shares his take on how emerging markets private equity has transformed itself in a short period of time from a discredited asset class to one that has proven it can deliver strong returns, while also promoting greater economic development.

Unlocking African Pension Capital for Private Equity (July 2011)
Publication Date: July 2011
Source: EMPEA
EMPEA recently participated in the West Africa Private Equity Roundtable, an event that brought together representatives from pension funds, insurance companies and regulatory bodies in Ghana and Nigeria with the goal of educating and, in the process, gaining a better understanding of the major constraints hindering local participation in private equity. In addition, J-P Fourie of SAVCA shares his perspective on how recent and proposed changes to regulation in South Africa are opening up opportunities for local pension fund investment in the asset class.

The New Investment Climate in Emerging Markets: Highlights from the 13th Annual GPEC (July 2011)
Publication Date: July 2011
Source: EMPEA
Investor interest in emerging markets private equity continues to surge, as evidenced by the enthusiastic crowd of over 750 leading industry representatives in attendance at the 13th Annual Global Private Equity Conference. Immediately preceding the conference, LPs gathered for the first ever Institutional Investors (II)-Only Working Session, where over 100 attendees discussed key issues such as risk, returns, and the absorptive capacity of emerging markets. In this article, EMPEA captures the salient takeaways from these events.

The Varied Approaches to Risk in Private Equity (Expert Commentary by AlpInvest Partners) (April 201
Publication Date: April 2011
Source: EMPEA
Effective risk management in private equity requires an understanding of its multiple dimensions. Peter Cornelius, who heads AlpInvest Partners' economic and strategic research, shares a top-down analysis of the various types of risk that global private equity investors face in the course of conducting business, and discusses the role of diversification as a risk mitigation strategy.

Better than Her Reputation? A Closer Look at Russia's Private Equity Landscape (April 2011)
Publication Date: April 2011
Source: EMPEA
According to the annual EMPEA/Coller Capital Emerging Markets Private Equity Survey, Russia has ranked at the bottom of all emerging markets in terms of investment attractiveness for the past three years. However, market participants assert that global impressions of Russia are not aligned with reality. This article aims to address this perception gap by taking a closer look at Russia's private equity environment in the context of its macroeconomic fundamentals.

Impact Assessment of the Recent Events in Tunisia (Expert Commentary by TunInvest-AfricInvest Group)
Publication Date: April 2011
Source: EMPEA
The extraordinary events in Tunisia, which were sparked by a spontaneous youth movement protesting unemployment, social inequities and corruption, will undoubtedly have a long-term impact on the investment environment there. TunInvest-AfricInvest Group shares an analysis of the short- and long-term outlook for Tunisia, based on official news, contacts with business community leaders, and the firm's own understanding of the situation on the ground, based on the experiences of its portfolio companies, both former and current.

Inside Perspectives: An Interview with OPIC's Jay L. Koh (April 2011)
Publication Date: April 2011
Source: EMPEA
Jay L. Koh, who joined Overseas Private Investment Corporation (OPIC) in 2010 and is currently Head of Investment Funds & Chief Strategist, discusses his team's newest initiatives and shares his vision for the organization. The U.S. Government's development finance institution, OPIC has invested approximately US$4 billion in emerging market private equity funds since 1987 and currently has a private equity portfolio of US$2.4 billion in commitments.

Regulatory Update (April 2011)
Publication Date: April 2011
Source: EMPEA
EMPEA's latest regulatory update includes summaries of Nigeria's recent regulation on the investment of pension fund assets; Brazil's adjustment to the rate of foreign inflows tax for private equity; and China's National Security Review System and Regulation of Equity Investment Enterprise Filings and the NDRC notice on the regulation of China's domestic PE industry.

Exit via IPO in China (Full Study by Ergo) (December 2010)
Publication Date: December 20, 2010
Source: Ergo Consulting
An examination of the exit environment in China, including the potential impact of regulatory changes and currency appreciation on the outlook for PE-backed IPOs.

RMB Funds: An Updated Legal and Tax Wish List (Expert Commentary by Weil, Gotshal & Manges LLP and K
Publication Date: December 2010
Source: EMPEA
Following the publication in the third quarter of 2009 of the article, RMB Funds—The Current State and Way Forward: A Legal and Tax Wish List, in the EMPEA Quarterly Review, there have been several noteworthy PRC regulatory developments concerning RMB private equity funds. In this article, John Fadely and Kevin Ban of EMPEA Premier member Weil, Gotshal & Manges LLP and John Gu of EMPEA member KPMG summarize those developments, as well as some of the ongoing impediments to the further development of RMB private equity funds and, specifically, to greater foreign participation in such funds.

Exit via IPO in China (Ergo Study Excerpt) (December 2010)
Publication Date: December 2010
Source: EMPEA
This article is an excerpt from a study by EMPEA member Ergo on the prospects for private equity investors to exit their investments via IPO in China. The study draws on interviews with more than a dozen investors and capital markets experts. Ergo is a New York-based strategy consulting firm specializing in emerging markets; its clients are primarily private equity firms and corporations.

Inside Perspectives: An Interview with Baring Private Equity Asia’s Jean Eric Salata (December 2010)
Publication Date: December 2010
Source: EMPEA
Jean Eric Salata, Founding Partner and CEO of Baring Private Equity Asia, recently met with the EMPEA Research Team to share his insights on the private equity landscape in China, as well as the broader Asian region. Baring Private Equity Asia is the largest regional growth equity firm in Asia with US$2.5 billion under management. The firm, which is currently investing out of its US$1.5 billion Fund IV, specializes in growth equity investments and mid-market buyouts targeting growing businesses with enterprise values between US$100 million and US$500 million.

Regulatory Update: AIFM Directive (December 2010)
Publication Date: December 2010
Source: EMPEA
EMPEA continues to closely monitor developments on the global regulatory front that will directly impact our members, including the Alternative Investment Fund Managers Directive (AIFMD) in the EU. After eighteen months of debate, the European Parliament approved the text of the AIFMD on 11 November 2010 with the consensus view being that the regulations are not as damaging as they could have been but that compliance will pose a burden for many in the industry.

The Impact of the Dodd-Frank Act on Investment Adviser Registration in the U.S. (December 2010)
Publication Date: December 2010
Source: EMPEA
With the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010, substantial adjustments have been made to registration requirements in the United States for private fund advisers. This article is a summary of these changes and related key issues discussed during an EMPEA Webcast with Weil, Gotshal & Manges LLP.

The Impact of Private Equity in Emerging Markets Case Study: Unnafibras (December 2010)
Publication Date: December 2010
Source: EMPEA
EMPEA is proud to present the fifth entry in our Private Equity Impact Case Study series, which highlights examples of the unique and catalytic role played by private equity investors for the companies in which they invest and the communities in which they operate. Our first Latin American case study profiles Brazilian textile manufacturer-turned-bottle recycler Unnafibras, backed by EMPEA member Stratus Group.

The Impact of Private Equity in Emerging Markets Case Study: GAM (October 2010)
Publication Date: October 2010
Source: EMPEA
EMPEA is proud to introduce the Private Equity Impact Case Study series, which will highlight examples of the unique and catalytic role played by private equity investors for the companies in which they invest and the communities in which they operate. Our first case study profiles Algeria-based insurer GAM, backed by EMPEA Premier member and Africa Council member Emerging Capital Partners.

Regulatory Update (AIFM, Dodd-Frank, China, India) (October 2010)
Publication Date: October 2010
Source: EMPEA
The regulatory front continues to evolve, bringing to bear a number of changes that will directly impact EMPEA’s members. Closely monitoring these developments, EMPEA provides a brief update on a number of issues currently in the spotlight including: * SEC registration requirements under the U.S. Dodd-Frank legislation * Details on the status of the third country marketing provisions under the European Union Alternative Investment Fund Managers Directive (AIFMD) * Tax changes afoot in China and the entry of insurance firms into PE * Changes to the takeover code in India and a delay on upcoming tax increases

Inside Perspectives: An Interview with the IFC Asset Management Company Team (October 2010)
Publication Date: October 2010
Source: EMPEA
EMPEA’s Research Team sat down with several key members of the IFC Asset Management Company (IFC AMC) to discuss the genesis of this new group and how it fits within IFC's larger mission and agenda. IFC AMC is a wholly owned subsidiary of IFC and was established in January 2009 to serve as a fund manager of third-party capital. IFC AMC currently manages the US$3 billion IFC Capitalization Fund (CapFund) and US$900 million for the African, Latin American and Caribbean (ALAC) Fund.

The Opportunity and Challenge of PE in Vietnam: Mekong Capital’s Experience (October 2010)
Publication Date: October 2010
Source: EMPEA
Chris Freund, Founder and Managing Partner of Mekong Capital, shares Mekong Capital’s experience, having made 27 investments in Vietnamese companies since Mekong Capital’s establishment in 2001. Mekong Capital undertook a major transformation in its value-addition framework and corporate culture commencing in late 2007, which eventually resulted in major breakthroughs in the performance of Mekong Capital’s investee companies. Mekong Capital has a team of around 35 people in Ho Chi Minh City and Hanoi. In this article, Chris Freund shares aspects of Mekong Capital’s experience in Vietnam that have broader implications for practitioners of private equity throughout emerging markets.

Beyond Standards: Integrating Responsible Investment into Your Portfolio (October 2010)
Publication Date: October 2010
Source: EMPEA
In the time since EMPEA last covered the industry’s thinking about responsible investment, the mood has shifted, as attitudes are increasingly about rolling up sleeves and putting good approaches to work. For private equity investors, the task ahead is to articulate how responsible investment (RI) policies translate to the investment process and to demonstrate evidence of resulting value creation. For emerging market investors, who have greater depth of experience dealing with RI issues, the challenge is to better capture and share what they’re already doing. This article highlights some structured and transparent approaches to incorporating RI into the investment process in ways that lead to reportable results by shining the spotlight on initiatives undertaken by KKR, The Carlyle Group and IFC.

What Really Lies Ahead for Emerging Markets Private Equity (June 2010)
Publication Date: June 2010
Source: EMPEA
To the observer, the press of bodies filling the halls of the Washington Ritz-Carlton in May might have been evidence that emerging markets private equity had experienced "a pretty good crisis." A record number of almost 800 delegates from over 50 countries attended the 12th annual Global Private Equity Conference, held in Washington on 11-12 May. Although the overall tone of the event was upbeat, sessions featured frank discussions about the myriad challenges facing GPs and LPs alike in a changed and changing world.

LPs Plan to Accelerate New Commitments to Emerging Markets Private Equity - Are They Serious? (June
Publication Date: June 2010
Source: EMPEA
The findings of the 2010 EMPEA/Coller Capital Survey suggested that investors are increasingly comfortable with the asset class and recognize that emerging markets private equity can generate strong returns to help fund pension and other obligations. Optimism surrounding the asset class is high -- over half (57%) of LPs currently invested in EM PE plan to accelerate their new commitments over the next two years -- but the reality is that general partners are still struggling to raise funds. Through mid-year 2010, EM PE fundraising is on track to match, but not significantly exceed, 2009 totals. The question remains, when will cash flows and commitments return to strength?

Inside Perspectives: An Interview with Aureos' Sev Vettivetpillai (June 2010)
Publication Date: June 2010
Source: EMPEA
Sivendran (Sev) Vettivetpillai, Chief Executive Officer of Aureos Advisers Limited (advisory company to Aureos Capital Limited), sat down with EMPEA's Research Team during the 12th annual Global Private Equity Conference to discuss developments within the asset class from a pan-emerging markets perspective, as well as changes underway at Aureos. Aureos currently manages US$1.2 billion of funds across 10 regional and 6 thematic private equity funds, established through 29 offices across Latin America, Africa and Asia.

Regulatory Brief, Including an AIFM Directive Update (June 2010)
Publication Date: June 2010
Source: EMPEA
A number of significant regulatory changes are afoot in the U.S. and Europe that will directly impact our members with operations and investors in those market, and likely influence emerging market regulators. Closely monitoring these developments, EMPEA provides a brief update on a number of issues in the spotlight including: * The European Union Alternative Investment Fund Managers (AIFM) Directive * South Africa's Taxation Laws Amendment Bill 2010 * The US Carried Interest Tax Debate * SEC Requirements for Registration of Investment Advisers

The ILPA Principles: How Will They Shape LP-GP Relationships in Emerging Markets (March 2010)
Publication Date: March 2010
Source: EMPEA
The ILPA Principles were released in September 2009 as a set of voluntary guidelines intended to establish best practices related to the alignment of interests between Limited Partners (LP) and General Partners (GP) around fund terms, transparency, reporting and fund governance. The Principles have since been endorsed by more than 100 institutions, including ten of the most active Development Finance Institutions (DFIs) investing in emerging markets private equity. In a world where emerging market funds battle for a share of an oftentimes smaller wallet, demonstrating clear alignment of LP-GP interests is more crucial now than ever before.

IFC's Experience in Emerging Markets Private Equity (March 2010)
Publication Date: March 2010
Source: EMPEA
The IFC's David Wilton draws on two decades of investment in emerging markets to share a myth-busting analysis of the true returns potential of emerging markets private equity investing. Key take-aways included are: - The opportunity is geographically much more diverse than the concentration of capital raising in Asia would suggest. There are both return and diversification benefits from taking advantage of the broader opportunity. - Emerging markets private equity is less risky than commonly perceived due to risk mitigants at the operating level. - To invest successfully, due diligence needs to go beyond examination of track record and into the fit between specific strategic approach and medium-term local conditions.

The AIFM Directive's Negative Impact on Developing Countries (March 2010)
Publication Date: March 2010
Source: EMPEA
Since 2009, the European Union (EU) has been considering a Directive to regulate Alternative Investment Fund Managers (AIFMs), including private equity fund managers and limited partners who invest in such funds. The stated intent of the Directive is to create supranational regulation of fund managers in order to minimize systemic (particularly cross-border) risk and enhance investor protections through greater transparency and other measures. The Directive as written includes provisions on capital requirements, the use of independent valuators and depositaries, disclosure requirements, limitations on leverage, and remuneration provisions. In addition, and of particular concern, are the third-party provisions that could greatly restrict or make it much more difficult for AIFMs based in emerging markets to raise capital in the EU, and for EU investors to invest in non-EU funds.

Agribusiness Private Equity: The Fertile Sector (December 2009)
Publication Date: December 2009
Source: EMPEA
The agribusiness sector presents investment opportunities far beyond farming—from crop and livestock production, through processing, packaging, storage and distribution, to marketing branded-food products. The scale and diversity of the agribusiness opportunity in emerging markets cannot be overstated.

2009 in Perspective and Predictions for 2010 (December 2009)
Publication Date: December 2009
Source: EMPEA
EMPEA solicited some of the industry’s leading practitioners for their reflections on 2009 and predictions for what lies ahead for emerging markets private equity.

“Jump Ball” for Limited LP Capital: Assessing Historical Returns in Times of Crisis (March 2009)
Publication Date: March 2009
Source: EMPEA
The ongoing financial crisis has severely depressed the prices for equity assets around the world, whether publicly or privately held. The prospect of declining entry valuations has led some emerging markets private equity investors to state that the 2009 and 2010 vintage years are likely to represent an “opportunity of a lifetime” for those limited partners (LPs) with the courage to commit new capital to these markets. How true is this likely to be? And compared to what, given the other investment opportunities that are available elsewhere?

Fundraising and Investment Slows Down Through Mid-Year (October 2009)
Publication Date: October 2009
Source: EMPEA
After bucking the global trend to raise a record-breaking US$66.5 billion in 2008, the emerging markets registered a dramatic slowdown in both new capital commitments and investment activity between January and June 2009 (1H).

RMB Funds—The Current State and Way Forward: A Legal and Tax Wish List (October 2009)
Publication Date: October 2009
Source: EMPEA
Recent headlines on interest in establishing RMB-denominated funds in China underscore the growing importance of issues relating to the coexistence of domestic and offshore fund sponsors and capital not only in China, but across the emerging markets.

Distressed PE: Is There an Attractive Investment Opportunity in the Emerging Markets? (October 2009)
Publication Date: October 2009
Source: EMPEA
The term “distressed” has become ubiquitous in light of a growing number of opportunities created by the dislocation in the credit markets. One limited partner (LP) active in distressed investing sums up the current landscape: “The model of good companies with bad balance sheets is quickly being replaced by great companies with terrible balance sheets.”

Now More than Ever: The Importance of Corporate Governance (March 2009)
Publication Date: March 2009
Source: EMPEA
The most notable emerging markets example of governance failure to emerge during the current crisis, India’s Satyam Computer Services reminded many investors of the risks inherent in investing in emerging markets.

Defying the Downturn? Fundraising and Investment Strong in 2008
Publication Date: March 2009
Source: EMPEA
Bucking global trends, 2008 saw the continuation of record-breaking fundraising for the asset class, albeit at a less dramatic rate of growth than in previous years. After nearly doubling between 2006 and 2007, capital raised by emerging markets-focused funds grew by 12% in 2008.

“Jump Ball” for Limited LP Capital: Assessing Historical Returns in Times of Crisis (March 2009)
Publication Date: March 2009
Source: EMPEA
The ongoing financial crisis has severely depressed the prices for equity assets around the world, whether publicly or privately held. The prospect of declining entry valuations has led some emerging markets private equity investors to state that the 2009 and 2010 vintage years are likely to represent ...

Plugging the Financing Gap: Is There a Growing Role for Mezzanine and Debt Funds? (June 2009)
Publication Date: June 2009
Source: EMPEA
EMPEA’s first quarter statistics confirm that the emerging markets have not been immune to a dramatic slowdown resulting from the global financial crisis. Both fundraising and investment figures have dropped in the first three months of 2009...

Stress Ahead for Emerging Market GPs and their LPs (December 2008)
Publication Date: December 2008
Source: EMPEA
How hard will the global financial crisis hit emerging markets private equity? This question is on the minds of many emerging market GPs and their LPs, as dour predictions for global recession pile up and liquidity becomes an ever scarcer resource.

EMPEA Members Survey: How the Global Financial Crisis is Impacting EM PE (December 2008)
Publication Date: December 2008
Source: EMPEA
In late October, EMPEA conducted a survey of its members to gauge the effects of the global financial crisis on the fundraising, investment and exit environments for EM PE, both now and in the near future...

The Outlook for EM PE Secondaries (December 2008)
Publication Date: December 2008
Source: EMPEA
Another by-product of the global financial crisis, the secondaries industry has grown in both prominence and value, as LPs seek liquidity to meet capital calls, to bring allocations in line, or to price their current portfolio as part of active asset management strategies.

Venture Philanthropy: A Private Equity Approach to Giving (September 2008)
Publication Date: September 2008
Source: EMPEA
The concept of venture philanthropy—leveraging private sector techniques to generate greater impact from charitable giving— is not a new one.

Natural Resources in Africa (September 2008)
Publication Date: September 2008
Source: EMPEA
Natural resource-related companies are becoming an increasingly prominent investment target for private equity funds on the back of long-term, continued growing global demand for such resources—particularly from emerging markets such as China and India.

Responsible Investment in Emerging Markets PE: Is Now the Time for ESG Standards? (September 2008)
Publication Date: September 2008
Source: EMPEA
From project finance to real estate development to public equities, investors are increasingly paying attention to a host of issues broadly categorized as ESG (Environment, Social, Governance). As the importance of extra-financial considerations has grown, so has the adoption of frameworks aimed at helping investors tackle ESG issues.

Rise of the Local Investor (June 2008)
Publication Date: June 2008
Source: EMPEA
The remarkable growth in commitments to private equity in emerging markets continues year after year, yet the bulk of capital is coming from North American and European investors. Historically domestic institutions have played a marginal role, and pension funds in particular have been under-represented.

LPs Continue to View Emerging Markets Favorably (June 2008)
Publication Date: June 2008
Source: EMPEA
The results of EMPEA’s 2008 Survey of Institutional Investors suggest yet another year of growth in commitments to emerging markets private equity (EM PE).

Benchmarking Performance: Challenges and Approaches for Emerging Markets (March 2008)
Publication Date: March 2008
Source: EMPEA


India: Can Private Equity Deliver Returns from Infrastructure? (March 2008)
Publication Date: March 2008
Source: EMPEA
While 2007 saw the global love affair with infrastructure blossom (19 infrastructure funds raised capital totaling US$19.9 billion—almost double that of 2006), some of the most ardent courtship can be found in emerging markets.

The State of Emerging Markets Private Equity: Turning a Corner (March 2008)
Publication Date: March 2008
Source: EMPEA
If 2006 was the year that emerging markets private equity regained the attention of institutional investors, the year 2007 will be remembered for a number of milestones in the development of the asset class.