Data & Intelligence

Legal & Regulatory Bulletin – Issue No. 19, Fall 2016

Our Fall Bulletin focuses on regulatory changes, which impact and will be of interest to practitioners in the emerging market private capital investment community.

Of note are changes to ways in which private equity investment is regulated in Brazil, an overview of potential shareholder and director liability in troubled investee companies in Nigeria, a regional overview of practical considerations for engaging in private equity and venture capital transactions in the Middle East and trending considerations for end-of-life funds. 

We anticipate that some of these matters will continue to resonate and interest attendees at the October EMPEA and The Financial Times Private Equity Week in London including the inaugural Sustainable Investing in Emerging Markets Summit, 25th October and the 8th Private Equity Africa Summit, 26th October.

In this Bulletin our contributors focus on:

  • Considerations of End-of-Life Funds: This is an in-depth exploration of issues impacting fundsponsored restructurings, liquidity events and tail-end options. Consideration is also given to the increasing use of fund manager-led secondary structurings
  • Brazil’s issuance of new regulations governing the formation, operation and management of private equity funds: This is a comprehensive overview of the main changes ushered in by these regulations and highlights matters that require adjustment to harmonise with existing regulations.
  • Nigeria’s recent recession and rules governing potential shareholder and director liabilities in troubled investee companies: With the recent declaration of recession at the end of the second quarter in Nigeria by the Nigerian Bureau of Statistics, here is a timely consideration of potential investor and director exposure to liabilities of ailing investee companies.
  • Middle-East-based companies in popular sectors such as healthcare are proving to be attractive to investors. This article provides ten tips for private equity and venture capital transactions in the Middle East.

EMPEA Regulatory Affairs Resources:

  • EMPEA’s regulatory advocacy resources support members as they seek to encourage legal and regulatory enabling environments in emerging markets that don’t disadvantage private investment. Contact: Ann Marie Plubell, VP, Regulatory Affairs plubella@EMPEA.net.
  • EMPEA Guidelines set out key legal and tax regimes optimal for the development of private equity and are now available in numerous languages including Arabic, Burmese, Chinese (simplified character), Portuguese and Spanish on the EMPEA website. A Vietnamese language version will soon be available.
  • EMPEA Legal & Regulatory Council draws on deep subject matter expertise in the emerging markets practice to address trending concerns.
  • EMPEA Legal & Regulatory Bulletin publishes key perspectives and insights of in-house legal officers and leading practitioners into the current challenges and concerns of the emerging markets community.
  • EMPEA education courses and resources for emerging market regulators, pension and policy oversight officials highlight the foundational issues relating to the development and regulation of private equity in developing economies. 

I look forward to seeing many of you in London and invite you to share your thoughts with Ann Marie Plubell, EMPEA VP, Regulatory Affairs at plubella@EMPEA.net.

Best wishes for the autumn season to you all,

Mark Kenderdine-Davies
General Counsel and Company Secretary, CDC Group plc
Chair, EMPEA, Legal & Regulatory Council

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EMPEA has served as a useful reference platform for CDPQ by helping to define the eligible universe of fund managers in growth markets. Membership provides background data and a...

Rashad Kaldany | Executive Vice-President and Growth Markets, CDPQ

The developed markets have no equivalent to the role EMPEA is playing as a convener and source of trusted information in the emerging markets.

David Rubenstein | Co-Founder and Managing Director, The Carlyle Group