Data & Intelligence

Legal & Regulatory Bulletin – Issue No. 10, Winter 2014

In keeping with our monitoring of issues in both emerging markets and the developed markets that so often shape reforms elsewhere, this tenth issue of the EMPEA Legal and Regulatory Bulletin looks at developments impacting investors in South Asia, the Middle East, China and Europe.

Orrick, Herrington & Sutcliffe’s John Shehata comments on Egypt’s efforts to liberalise its economy since the removal of the Morsi-led government from power in July 2013. He catalogues progress towards the creation of a more favorable investment environment, including the lifting of restrictions on repatriating foreign currency, and recommends areas for further reform.

Darshika Kothari and Aditya Jhaveri of the Indian law firm AZB & Partners provide guidance on recent regulatory developments in India aimed at building investor confidence, including last year’s overhaul of the country’s company law regime, the Securities and Exchange Board of India’s proposal to rationalise investment routes into India and amendments to angel fund regulations.

Moving east, the Bulletin explores issues of fraud and entrepreneurialism in China. Violet Ho of Kroll Advisory Solutions draws from the firm’s recent Global Fraud Report 2013/2014 to provide insight on the mindset of entrepreneurs in China, illustrating a universally applicable rationale for conducting in-depth investment due diligence when investing in businesses in emerging markets.

In our continuing coverage of the far-reaching European Alternative Investment Fund Managers Directive (AIFMD), we focus on the circumstances in which European and non-European private equity fund managers are able to market their funds under national placement rules across Europe. The Bulletin informs readers of a wealth of materials produced by the European Venture Capital Association (EVCA) on this topic.

Finally, we are pleased to report that efforts to put the EMPEA Legal & Regulatory Guidelines into practice continue to grow with the translation of the Guidelines into two additional languages: Arabic and Burmese, with a French version currently available. The EMPEA Legal and Regulatory Council is also pleased to welcome two new Council members who we hope will help us influence the impact of global regulatory developments on the asset class and enhance members’ understanding of the same. They are William Hay of Baring Private Equity Asia, based in Hong Kong, and Oliver Rochman of Proskauer Rose, based in Boston.

We invite EMPEA Members and non-members alike to explore regulatory and other issues facing the private equity industry at EMPEA’s Global Private Equity Conference in Washington, DC on May 12-15. We also look forward to engaging with private equity practitioners focused on South Africa at the Private Equity in Southern Africa Conference, presented by SAVCA, FT Live, and EMPEA on February 11.

In the interim, we welcome your comments and suggestions, which can, as always, be shared with Jennifer Choi at choij@EMPEA.net. Given our renewed focus on advocacy efforts, we are particularly interested in hearing from you on issues in your country or a target country where you feel industry advocacy efforts could bear fruit.

A very happy new year to you all.

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


In This Issue

India Regulatory Update

The Way Forward for Private Equity in Egypt

Pre-empting Fraud: Understanding the mindset of the Chinese entrepreneur and how business in done in China

AIFM Directive Implementation: Fund Marketing

EMPEA’s Fundraising Masterclass Series

EMPEA represents the leading global investors in EM. I look forward to working alongside to drive much-needed capital for financing entrepreneurs and businesses worldwide.

Renuka Ramnath | Founder, Managing Director & Chief Executive Officer, Multiples Alternate Asset Management Private Limited

EMPEA plays an important and energetic role across the markets it represents, driving outreach and research initiatives, and promoting the role of private capital.

Brian Lim | Partner and Head of Asia and Emerging Markets, Pantheon Ventures

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 Co-Executive Chairman, The Carlyle Group

I’m honored to join fellow industry pioneers in the leadership of an unparalleled network, filled with first movers, shaping the future of industries and communities.

Dr. Andrew Kuper | Founder and CEO, LeapFrog Investments

EMPEA's market and industry intelligence opens doors to new sources of capital.  I look forward to the future success of EMPEA and its members.

Torbjorn Caesar | Senior Partner, Actis

While there are certainly challenges for the industry, the opportunities abound in our target markets and globally, making a global association like EMPEA more relevant than ever.

Drew Guff | Managing Director & Founding Partner, Siguler Guff & Company