Legal & Regulatory Bulletin – Issue No. 5, Winter 2012

We are pleased to present the fifth issue of the Bulletin, marking a milestone for both this publication and the EMPEA Legal and Regulatory Council as we enter our second year.

As investors and regulators grapple with how to balance a new appreciation for risk with the requirement to capture alpha, their efforts are yielding unwelcome complexity in some corners, and the promise of reforms in others. EMPEA’s Legal and Regulatory Council is working to make sense of these changes, reflected in these pages.

This issue of the Bulletin shines a spotlight on some of the challenges arising from the growing complexity of investing in these markets, such as protecting a firm’s hard won reputation from risks to the institutional brand. These considerations take on even greater weight in light of evolving regulations regarding corruption as well as intensifying pressure from some quarters to disclose information once treated as confidential.

The Bulletin also features commentary on the prospects for pro-private equity reforms in two very different contexts. Indian law firm AZB & Partners examines how the forthcoming election season in India might influence the medium-term outlook for industry-friendly regulations. By way of comparison, Mexico’s politics are expected to have little impact on an already positive outlook for private equity, bolstered by new regulations allowing for participation in private equity funds by Mexican pensions. White & Case examines how the fledgling structure, the “CKD”, is being received by the industry and how it could take shape in future.

In contrast to India and Mexico, where there have been serious efforts to introduce regulations specific to private equity, in the Western African jurisdictions surveyed here by Udo Udoma & Belo-Osagie and Norton Rose Africa Legal, with the possible exception of Nigeria, the adequacy of existing frameworks varies widely and generally leaves room for improvement.

Finally, we are very pleased to welcome our newest member, from the first Indian firm represented on the Council, Zia Mody of AZB & Partners.

The Council continues to keep a close watch on the changing regulatory dynamics in both developed and developing markets and your feedback is crucial to the effectiveness of our work. The Council’s next planning session takes place in May around the 14th Annual Global Private Equity Conference in Washington DC co-hosted by the IFC and EMPEA. We look forward to seeing many of you there.


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

in this issue

Counsel’s Role in Protecting Brands and Managing Reputational Risk
Mark Kenderdine-Davies, CDC Group plc

Policy Reform in 2012: Opportune Time for Investing in India
Bahram N. Vakil and Aditya Jhaveri, AZB & Partners, Advocates & Solicitors

Sourcing Capital through Mexico’s CKD Structure: the Next Phase
Manuel Groenewold O., White & Case, S.C.

Regulation of Private Equity in West Africa – Emerging Trends
Folake Elias-Adebowale, Udo Udoma & Belo-Osagie, and Lance Roderick, Norton Rose