EM

Question 1

Ways to add value for PE investors in EM

Answer 1

• Operational value add
• Human Capital
• Improve corporate governance
• Environmental
• Financial - optimize cap structure, access to financing, negotiation with lenders, financing roadmap

Question 2

Difference between EM and developed market

Answer 2

• Lack of supportive government policies
• Inadequate legal protection and absence of rule of law
• Weak financial markets (and limited exit opportunities)
• Information asymmetry
• Currency risks
• Market specific risks like corruption