Investment Thesis

 

Emerisque’s investment thesis proposes to realize emerging market returns whilst minimizing emerging market risks:

 

Investment Rationale

    • 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.

     

Investment Criteria

    • 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.