Emerging Markets Private Equity Association Calls for Rethink of EU Alternative Investment Fund Managers Directive in Light of New Data

WASHINGTON D.C., April 20, 2010 - EMPEA (www.empea.net/) , the Emerging Markets Private
Equity Association, has strongly advised Members of the European Parliament
(MEPs) to vote with caution when adopting proposals on third country
arrangements of the draft Alternative Investment Fund Managers ("AIFM")
Directive on 27th April. The outcome of this vote will seriously affect
economic development in emerging economies. EMPEA also requests that the
directive be amended to allow Emerging Market Fund Managers to market their
funds in the EU under a regime similar to the private placement one now in
place.

Citing new research data from the latest EMPEA/Coller Capital
Emerging Markets Private Equity Survey
(www.empea.net/Main-Menu-Category/Member-Links/Just-Released-2010-EMPEAColler-Capital-EM-PE-Survey-of-Investors-.aspx),
the non-profit, independent global industry association appealed to MEPs to
strongly consider voting against the AIFM Directive in its current form,
which if adopted, will cause Alternative Investment Funds ('AIFs') in
developing countries to lose access to funding from the EU market; and
cause EU investors, including EU member development banks, to be limited in
their ability to promote private sector growth in the world's poorest
countries.

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Appealing to the MEPs, Sarah Alexander, President and CEO of
EMPEA said: "April 27 could well be remembered as the day Europeans
undermined both their best tool for alleviating poverty in developing
countries and the best chance they have of re-filling pension fund coffers
depleted after the financial crisis."

The results of the EMPEA/Coller Capital Emerging Markets
Private Equity Survey reveal that over half of limited partners currently
invested in emerging markets private equity intend to accelerate their new
commitments over the next two years; and that total commitments to emerging
markets private equity funds are expected to rise from 6-10% today to 11-15%
in two years' time. Investors are attracted to markets with strong underlying
growth rates but private equity investment is also a critical driver of
economic growth and job creation in developing countries.

Since 2005, such funds have raised more than US$200 billion
for targeted investments into developing countries, providing a crucial
source of capital for businesses in markets where private capital is very
difficult to access. All of these factors are likely to be damaged by
specific provisions in the AIFM Directive's current form which would greatly
restrict the possibilities for AIFs to be marketed in Member States by fund
managers based in emerging markets.

The third country and equivalency provisions contained in the
draft Directive would make it either legally impossible or cost-prohibitive
for Emerging Markets Fund Managers to raise capital in various EU markets,
jeopardizing their ability to raise sufficient funds for investment and
therefore to be viable as going concerns.

EMPEA's understanding is that the aim of the Directive is
protection against systemic risk. It submits that there is no systemic risk
presented by such funds, and cannot understand why the EU would seek to
prohibit funds managed by Emerging Markets Fund Managers from seeking
investors or making presentations in the EU. At a minimum, the managers of
such funds should be in a position to lawfully respond to inquiries from EU
investors.

Therefore, on behalf of its members, EMPEA is registering its
concerns about the negative impact the draft Directive will have on this
important source of development capital and requests that the directive be
amended to allow Emerging Market Fund Managers to market their funds in the
EU under a regime similar to the private placement one now in place.

EMPEA estimates that more than 90% of its fund manager members
currently either market their funds to, or have as investors, entities from
within the European Union. The third country and equivalency provisions
contained in the draft Directive would make it either legally impossible or
cost-prohibitive for Emerging Markets Fund Managers to raise capital in
various EU markets, jeopardizing their ability to raise sufficient funds for
investment and therefore to be viable as going concerns.

Indeed, such arrangements are likely to either force those
Emerging Markets Fund Managers to cease soliciting investors in the EU or,
for those who are able, force them to relocate their management activity from
the least developed economies to those which are more developed, thereby
undermining the growth of nascent fund management industries in such
economies.

Notes to Editors:

EMPEA (www.empea.net/) is a non-profit, independent,
global industry association whose mission is to promote the development of
private equity and venture capital investment in the emerging markets of
Africa, Asia, Europe, Latin America and the Middle East. EMPEA represents 280
fund managers and institutional investors headquartered in more than 40
developing countries, and its membership includes the most active European
development banks that invest in private equity funds in developing markets.

The EMPEA and Coller Capital Survey is available to download
from the EMPEA and Coller Capital websites at: www.empea.net and
www.collercapital.com.

    For more information, please contact:
    Narda Shirley/Sarah Caddy
    Gong Communications
    +44(0)20-7935-4800
    narda@gongcommunications.com
    sarah@gongcommunications.com

For more information, please contact: Narda Shirley/Sarah Caddy, Gong Communications, +44(0)20-7935-4800, narda at gongcommunications.com, sarah at gongcommunications.com