NEW RELEASE May 2009

2009 INDUSTRY REPORT LATIN AMERICAN PE/VC DATA, MARKETS AND TRENDS

A new report from the Latin American Venture Capital Association presents the results of the first regional survey of private equity and venture capital investment in Latin America, creating the most comprehensive source of standardized, independent data and analysis on private capital investment in Latin America to date.

The research effort was conducted in collaboration with faculty and students from the Wharton School at the University of Pennsylvania, as well as local partner organizations throughout Latin America.

More than 95% of the largest global and local funds active in Latin America completed the survey, with 110 firms reporting 2008 fundraising, investments and exits. Information gathered from the survey of private capital firms was complemented by an opinion survey of global institutional investors and dozens of interviews with fund managers and other market participants.

Investment activity for 2008 is classified by market, sector and stage, and presented alongside an analysis of the investment environment in each of the major markets in the region. A special section provides a snapshot of over 40 deals representing a range of industries and strategies. Information on 2008 is accompanied by analysis and projections on private equity and venture capital investing in 2009 and beyond. REPORT CONTENT SUMMARY

Introduction: Regional and Industry Overview Looking Back on 2008: Findings from LAVCA Regional Survey

‐ Venture Capital Activity Overview ‐ 2008 Country Level Data and Analysis on Brazil, Mexico, Chile, Peru,

Argentina, Colombia, Other Markets Looking forward: Uncertainty, Opportunity and Creativity

‐ The Deal Pipeline for 2009 ‐ Target Sectors and Strategies for the Downturn ‐ What to Expect in Key Markets ‐ Investor Confidence in 2009 and Beyond ‐ Looking for Exits

2008 Investment Highlights

HOW TO GET A COPY The LAVCA Annual Industry Report is available from LAVCA for US $295.00. For more information or to purchase a copy, please contact Ana Gutierrez: agutierrez@lavca.org or 646-315-6735.

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SELECT REPORT HIGHLIGHTS 110 firms reported investment activity to LAVCA in the first comprehensive regional survey of private equity and venture capital Firms reported 200 investments for a total of $4.6b Firms raised $6.4b from local and global investors Firms reported a total of 56 exits for a total of $2.6b Global investors remain confident in the mid- to long-term potential of Latin America In a recent LAVCA investor opinion survey 80% of respondents indicated that they plan to maintain or increase their investments in Latin America in 2009 Governments in five key Latin American countries are committed to developing local private equity and venture capital industries Brazil, Mexico, Chile, Colombia and Peru have all launched programs in support of private capital investment The impact of the global financial and credit crisis on Latin American markets was comparatively less than in other regions Banks were not exposed to toxic assets, there was relatively less use of leverage in acquisitions and access to credit has traditionally been tight Local pension funds in Brazil, Peru and Colombia have emerged as an important new source of capital In all three countries new private equity and venture capital funds were raised and invested with commitments from local pension funds Consumer demand from an expanding middle class is creating opportunities for private equity and venture capital investors Private capital investors are targeting sectors driven by consumer demand, including education, healthcare, consumer products, consumer finance and housing Fund managers predict that 2009 will be one of the best vintage years for investments in several cycles Companies with healthy business models have been affected by economic slowdown and currency depreciation and need capital to subsist and grow. Valuations are competitive compared to other emerging markets

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