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LAVCA Board Endorses IPEV & PEIGG Valuation Guidelines

31 March 2006

March 31st, 2006 | Belo Horizonte, Brazil – The Board of Directors of the Latin American Venture Capital Association (LAVCA), voted today to endorse both the International Private Equity and Venture Capital (IPEV) and Private Equity Industry Guidelines Group (PEIGG) valuation guidelines as acceptable international practices.

In arriving at its position, LAVCA’s Board heard from Mr. Everett J. Santos, Co-Chair of LAVCA’s Professional Standards Committee and CEO of EMP Global LLC’s Latin America Group, who presented the Committee’s recommendation regarding a request from the European Venture Capital and Private Equity Association (EVCA) for LAVCA to endorse the IPEV Valuation Guidelines.

Mr. Santos stated that the Committee also reviewed the PEIGG Valuation Guidelines, which has been endorsed by the Institutional Limited Partners Association (ILPA). Mr. Santos noted that several trade associations have endorsed both the IPEV and PEIGG guidelines. The U.S. National Venture Capital Association (NVCA), which has endorsed neither, was consulted by the Committee during its evaluation process, as was Mr. Anthony Cecil, a partner with KMPG and a developer of the IPEV guidelines.

According to Mr. Santos, although the Committee determined that slight differences exist between the IPEV and PEIGG valuation guidelines, in the interests of further professionalizing the asset class in Latin America and the Caribbean, it recommended that both valuation guidelines be endorsed as acceptable international practices.

LAVCA’s Board also noted the Committee’s qualifying view that efforts initiated by the IPEV and PEIGG working groups to develop one consolidated set of international guidelines should be strongly encouraged to promote further homogenization of these practices.

The Professional Standards Committee of the Latin American Venture Capital Association (LAVCA) was established in November 2005 to review and recommend professional standards and investment practices to LAVCA’s Board of Directors for potential use by LAVCA members.

LAVCA Board of Directors:
David E. Thomas, Intel Capital Latin America, Chair
Enrique Bascur, CVC International
Eduardo Elejalde, Latin America Enterprise Fund Managers
James Hallmark, Millennium Challenge Corporation, Secretary & General Counsel
Christina Kappaz, Development Capital Networks, President
Julio Lastres, Darby Overseas Investments, Ltd.
Claudia Fan Munce, IBM Global Venture Capital Group
Erik Peterson, Aureos Capital
Everett J. Santos, EMP Global LLP, Chair Emeritus
LAVCA Professional Standards Committee Members:
Everett J. Santos, EMP Global LLP, Co-Chair
James Hallmark, Millennium Challenge Corporation, Co-Chair
José E. Golffier, Intel Capital Latin America
Raul Herrera, Winston & Strawn
Victor Zerbino, Prosperitas Capital Partners