Emerging Markets

EMI seeks to leverage its deep understanding of the Cambodian and Lao markets to identify, fund and support promising, transparent businesses in these markets.  Having consulted to organisations in the region over the last decade, the team is well-positioned to both identify and advise its investees.

On behalf of the Fund, EMI targets the “new economy” businesses whose success is based on the development of profitable businesses which are exploring and developing niches, seeking first-mover positions or working to adapt proven business models in growing sectors. This class of entrepreneurs is dynamic, internationally informed and ambitious and is engaged in the highly developmental business of building Cambodia's and Lao PDR's private sectors.

Investment Evaluation
EMI implements a highly disciplined and rigorous approach to the process of evaluating investment opportunities which incorporates best practices from institutional and entrepreneurial private equity investing. Our evaluations include, among other criteria, the following assessments:

• Industry attractiveness and constraints to growth and returns, including regulatory environment and governance issues
• Long-term business opportunity – natural advantage, regulatory change
• Cash flow, in particular the ability to generate cash
• Competitive position and differentiation - relative market share, relative cost position, development of local brand
• Review of the history and background of founding entrepreneur(s) and/or key shareholders
• Expansion plans that can achieve rapid growth
• Compliance and corporate governance approaches
• Realistic and achievable investment exit scenarios

• Protection against downside risk
• Self-liquidating; deemphasizing exit requirement/impact on total return
• Deal structures which enable both feasible investment valuations and management participation in "upside"
• Clear ability to add value through Board participation and positive and negative controls
• To the extent possible, simple structures to ensure true understanding among investees and to limit implementation costs