Advocacy Initiatives

LAVCA submitted documentation presented by AMEXCAP to Mexican finance minister commenting on regulatory changes affecting direct investing by local pension funds in private equity, tax treatment of PE/VC funds and investments as well as fund formation and operation.

In response to the draft regulation regarding the Colombian pension fund regime “Revisión al Régimen de Inversión de los Fondos de Pensiones Obligatorias y Cesantía, LAVCA produced a letter advocating on behalf of member firms to increase the pension fund’s limits on alternative investment allocations providing an alternative proposal and evidence for increasing the limit based on: international best practice, knowledge of economies of scale, profitability and diversification, illiquidity and demographic consideration, changes in volatility and cash limits.

At the request of ColCapital and as a follow-on to topics discussed in the LAVCA Colombia public policy meeting held in November 2014, LAVCA produced a letter and review of third-party valuation practices to the Colombian Superintendency explaining why mandatory third party valuations are adverse to the growth of the private equity industry. LAVCA staff led this project and was able to produce this with input from Advisors and Board Members.

LAVCA held a meeting on behalf of the PP-GS Council and LAVCA member firms with representatives of the Peruvian Superintendencia Bancaria in Peru on August 12, 2015 to discuss commentary on recently passed regulation affecting pension funds investing in private equity.

LAVCA submitted a letter to the Peruvian Superintendency with the collaboration of Francisco Arboleda of Member firm HarbourVest in response to changes in regulations affecting local pension funds investing in private equity.

In response to the draft regulation Prepublicacion Indicador regarding the Peruvian pension fund’s limits on alternative investment, LAVCA submitted a letter to the Peruvian Superintendency advocating on behalf of member firms to remove the indicator that will allow pension funds to make new commitments. Based on international best practices, LAVCA proposed to measure exposure based solely on NAV.

In response to the recently published draft resolution and information on Separately Managed Accounts, LAVCA produced a letter which carefully reviews Peruvian regulation on separately managed accounts and makes specific recommendations on each article of the resolution

In response to the Proyecto de Circular 023 de 2015, LAVCA produced a letter and review of valuation best practices in Europe to the Colombian Superintendency explaining why mandatory third party valuations run contrary to international best practice and how this requirement will impact the future formation of alternative investment funds.

LAVCA held a “Regulatory Luncheon” with the Superintendencia Financiera de Colombia in August 2015, the URF (Unidad de Regulacion Financiera) and ColCapital (local PE/VC Association) to address the PE/VC regulatory issues in that market. As a note, Colombia was downgraded on the indicator “Laws on PE/VC Fund Formation.” The chief concerns LAVCA expressed to Colombian regulators were in reference to the following norms.

LAVCA recently sat down with David Druley, leader of Cambridge Associates’ global pension practice, Aaron McKay, a private investments specialist and leader of Cambridge’s Latin America initiative, and Andrea Auerbach, global head of private equity research and co-investments, to talk about a global pension funds’ approach to funds, co-investing, and directs as a model for local institutional investors.

In response to the draft regulation regarding the Colombian pension fund regime “Revisión al Régimen de Inversión de los Fondos de Pensiones Obligatorias y Cesantía, LAVCA produced a letter advocating on behalf of member firms to increase the pension fund’s limits on alternative investment allocations providing an alternative proposal and evidence for increasing the limit based on: international best practice, knowledge of economies of scale, profitability and diversification, illiquidity and demographic consideration, changes in volatility and cash limits.

At the request of ColCapital and as a follow-on to topics discussed in the LAVCA Colombia public policy meeting held in November 2014, LAVCA produced a letter and review of third-party valuation practices to the Colombian Superintendency explaining why mandatory third party valuations are adverse to the growth of the private equity industry. LAVCA staff led this project and was able to produce this with input from Advisors and Board Members.

In response to the Proyecto de Circular 023 de 2015, LAVCA produced a letter and review of valuation best practices in Europe to the Colombian Superintendency explaining why mandatory third party valuations run contrary to international best practice and how this requirement will impact the future formation of alternative investment funds.

LAVCA held a “Regulatory Luncheon” with the Superintendencia Financiera de Colombia in August 2015, the URF (Unidad de Regulacion Financiera) and ColCapital (local PE/VC Association) to address the PE/VC regulatory issues in that market. As a note, Colombia was downgraded on the indicator “Laws on PE/VC Fund Formation.” The chief concerns LAVCA expressed to Colombian regulators were in reference to the following norms.

LAVCA submitted documentation presented by AMEXCAP to Mexican finance minister commenting on regulatory changes affecting direct investing by local pension funds in private equity, tax treatment of PE/VC funds and investments as well as fund formation and operation.

LAVCA recently sat down with David Druley, leader of Cambridge Associates’ global pension practice, Aaron McKay, a private investments specialist and leader of Cambridge’s Latin America initiative, and Andrea Auerbach, global head of private equity research and co-investments, to talk about a global pension funds’ approach to funds, co-investing, and directs as a model for local institutional investors.

LAVCA held a meeting on behalf of the PP-GS Council and LAVCA member firms with representatives of the Peruvian Superintendencia Bancaria in Peru on August 12, 2015 to discuss commentary on recently passed regulation affecting pension funds investing in private equity.

LAVCA submitted a letter to the Peruvian Superintendency with the collaboration of Francisco Arboleda of Member firm HarbourVest in response to changes in regulations affecting local pension funds investing in private equity.

In response to the draft regulation Prepublicacion Indicador regarding the Peruvian pension fund’s limits on alternative investment, LAVCA submitted a letter to the Peruvian Superintendency advocating on behalf of member firms to remove the indicator that will allow pension funds to make new commitments. Based on international best practices, LAVCA proposed to measure exposure based solely on NAV.

In response to the recently published draft resolution and information on Separately Managed Accounts, LAVCA produced a letter which carefully reviews Peruvian regulation on separately managed accounts and makes specific recommendations on each article of the resolution