Legal & Regulatory Bulletin – Issue No. 21, Spring 2017


The EMPEA Spring Bulletin focuses on policy issues as well as treaty changes, tax and proposals for a new model to attract growth capital to businesses operating in the poorest countries.

In this Bulletin our contributors focus on:

  • Rising to the Challenge of Growth Capital Equity Investment in the World’s Poorest Countries – A New
    Model: The impact investing community faces the challenge of aggregating and deploying growth capital equity in the world’s poorest countries. Is there a new model to address this challenge?
  • Accessing Chinese Investor Capital: What does a changing currency conversion policy signal with regard to tapping onshore Chinese investor capital for outbound investment? What are the approval regimes in the context of tightening controls and current policy and what are the likely trends?
  • Unified Investment Structures following the India Mauritius Treaty Protocol: As an increasing number of international investors evaluate India-focused private funds, what are the key considerations when reviewing unified investment structures? Is the India-Mauritius treaty of decreasing relevance in the funds world? Are international investors now willing to invest “onshore” India?
  • The “Phantom Tax” and how Emerging Market Fund Investors Might Reflect on Balancing Distribution Provisions: What drives the “phantom tax” and how does it impact emerging market fund sponsors under various fund
    distribution structures?
  • A Review of Instruction 578 on the “Fundos de Investimento em Participações” or “FIPs” in Portuguese)
    now expressly allowing FIPs to invest abroad and the applicable conditions: Does the gray area clear and the door open to positon Brazil as Latin America’s hub for Private Equity and Venture Capital?