Darby Overseas Investments, Ltd A l eading investment advisor in emerging markets

1. The Future of Domestic Capital Markets in Developing Countries ConferencePanel: The Role of Private Equity in the Development of Domestic Capital MarketsAlejandro Schwedhelm Darby Financial Services Strictly Private & Confidential

2. FIXED INCOME TECHNOLOGY VENTURES PRIVATE EQUITY MEZZANINE FINANCE • Darby Emerging Markets Fund, L.P. • $150 million invested in 11 companies in Mexico, Brazil, Peru, Chile and Colombia • Darby-BBVA Latin American Private Equity Fund, L.P. • $250 million target • $100 million raised • Investment and further fund raising under way • Sectors: Consumer Industries, Retailing & Distribution, Financial Services, Oil and Gas, Telecommunications • Darby Latin American Mezzanine Fund, L.P. • First dedicated Mezzanine Finance fund for Latin America - $195 million • 8 investments - $114 million (telecom, port, toll roads, gas pipeline, water treatment, waste management) in Mexico, Brazil, Colombia, Bolivia, Argentina • Asian Infrastructure Mezzanine Capital Fund • First dedicated Mezzanine Fund for Asia - $246 million • 9 investments - $187 million (telecom, transportation, power) in China, Korea, India, Philippines, Indonesia • Hong Kong-based team • Darby Emerging High Yield Fund • $12 million • Darby Emerging Markets Income Fund • $10 million • Sub-Advisory Relationships • $500 million CBO with Mass Mutual • Moneda Asset Management (Chile) • Etra Emerging Markets Income Fund (Italy) • Darby Technology Ventures Group, LLC • Early stage technology investments in Latin America • 2 portfolio companies in Brazil and Argentina • Transfer and adapt advisory services • Technology Centers • Sectors: Infrastructure Services; Enterprise Software and Networks Communications Darby Overseas Investments, LtdA leading investment advisor in emerging markets A leading investment firm that invests its own and client capital in emerging markets. Currently, the firm provides investment management/advisory services with respect to funds amounting to over $1 billion across five investment fields. Darby was established in 1994 by The Honorable Nicholas F. Brady, former U.S. Treasury Secretary and Chairman of Dillon, Read & Co. Inc. Mr. Brady serves as Darby’s Chairman. The firm’s CEO is Richard H. Frank, former World Bank Managing Director and CFO of the International Finance Corporation. FINANCIAL SERVICES • Darby Financial Services • Targeting bank and non-bank opportunities in Latin America, US Hispanic, and the US - Mexico border economy • Darby Regional Banking Fund, a specialized financial sector fund for Central America • Portfolio oversight and exit strategy for Darby’s financial sector investments • Mandate to create new funds for broader emerging market financial services investment Darby Financial Services Strictly Private & Confidential

3. From the Panel’s premises • Equity markets can create virtuous cycles • Private Equity can fill the need for equity finance • Private equity can help stimulate and professionalize domestic investment • Expectations have not been met • Critical success factors • Development of Private Equity Industry Darby Financial Services Strictly Private & Confidential

4. Equity markets can create virtuous cycles • No question. • Fundamental Obstacle: Entrepreneurs see firms as their “baby”, not as the product of their work. • Two responses: • Owners seek long term success • Transparency transforms “control” into “leadership” Darby Financial Services Strictly Private & Confidential

5. Private Equity can fill the need for equity finance • Not under today’s international and local market conditions. • Insuficient volume • High earnings expectations Darby Financial Services Strictly Private & Confidential

6. Private equity can help stimulate and professionalize domestic investment • Definitely • Some characteristics of Private Equity: • High perceived risk • High expected return • High administrative cost • High concentration • High participation • Professional oversight • “Own” regulator • Cross-pollinization Darby Financial Services Strictly Private & Confidential

7. Expectations have not been met • Volume? Results? • Re-visit the nature of Private Equity: Private Equity Venture Capital / Friends & Family Public Markets Darby Financial Services Strictly Private & Confidential

8. Critical success factors • Character & Ethics • Rate of return • Entry valuation • Sources of value • Organic growth • Strategic growth • Strategic acquisition / sale • Risk – reward equilibrium • Management • Exit strategy • Formula based put • Market sale (IPO or gradual) • Trade sale Darby Financial Services Strictly Private & Confidential

9. Development of Private Equity Industry • Avoiding over-regulation • SINCAs in Mexico • The market dilemma • Optimized for quality or volume / liquidity • Private equity prefers the latter • Implication: Grown-up investor does homework • Success stories • For Private Equity investors • For investee companies’ shareholders Darby Financial Services Strictly Private & Confidential

10. Darby Financial Services Strictly Private & Confidential