Emerisque’s investment thesis proposes to realize emerging market returns whilst minimizing emerging market risks:
- 80% of global growth in consumption in the future is assured to take place in four regions of the world i.e., in the C.R.I.M. markets (Greater China, Greater Russia, India, Middle East & North Africa).
- 80% of globally known brands across multiple categories come from four countries (USA, UK, France and Italy), with specific category leadership in a handful of others (for example, Switzerland for watches, Germany for engineered goods).
- Large, transnational brands are strategic in their approach to building their businesses in the C.R.I.M. markets.
- Medium-sized brands generally maintain a regional focus within three economic areas - the EU, USA and Japan; their activities in the C.R.I.M. markets are largely opportunistic.
- Established Consumer Brands and Vertical Retailers (in existence for at least one generation).
- Category agnostic, but favour direct-to-consumer brands that are operating in segments with growth market consumer momentum, by way of example only:
- Fashion and footwear
- Jewellery, watches and accessories
- Travel and leisure accessories
- Home furnishings
- Quick-service food and hospitality
- Personal care salons/spas/services and packaged goods
- Children’s products/equipment etc.
- Credibility and relevance of brand/retail proposition in the C.R.I.M. markets (yet presently under-penetrated outside mature, core markets).
- Medium-sized businesses with turnover generally between $100 million - $1 billion (existing critical mass is important).
- Equity contribution in a very broad range, generally up to $200 million per transaction (upper end of range for portfolio acquisitions).
- Controlled investments in private/take-private transactions, and influential, consensual minority investments in public equities.
Investment Underwriting Bases
- Mature markets focus on core sustainability: profitability, cash-flow and refined brand DNA.
- Re-allocation of capital and resources for driving strategic growth in the C.R.I.M. markets and growth channels.
- Quality support to management team in global brand rejuvenation, operational optimisation in mature markets, and strategic roll-out in the C.R.I.M. markets and growth channels.