EMP's investment model has also evolved over a decade of investing.  While each transaction will be structured differently depending on the circumstance and opportunity, several proven value investment principles are observed.

EMP seeks to invest in businesses that employ a readily understandable business model with clearly identified drivers of growth and profitability.  In short, we seek to invest in businesses that we understand.  EMP looks for businesses with favorable long term prospects, especially those that benefit from high barriers to entry through licenses, high capital costs for any potential competitor, or high switching costs on the part of customers.

EMP will consider minority positions in companies controlled by either a reputable local sponsor or an international strategic investor.  This is generally accompanied by strong strategic and financial controls including downside protections and control over exit and other key decisions.  Additionally, EMP funds increasingly invest in control positions, either as a sole investor or in partnership with other financial investors, including participation in leveraged buy outs in markets in which capital markets support such activities.

EMP funds pay particular attention to downside risk and risk/return profile.  EMP has employed a wide variety of techniques designed to alter the risk/return profile to mitigate risk.  These include structuring investments as hybrid debt/equity securities, including preferred stock, mezzanine and convertible debt and debt with warrants.  EMP also looks to address illiquidity risk by negotiating put option agreements with partners that assure EMP of an exit within the timeframe of each fund.

Regardless of investment structure, EMP takes a "hands on" approach to its investments.  We believe our geographic and industry experience allows us to be a value adding investor throughout the life cycle of each investment.  Our input begins in the pre-investment phase as we look to agree to future strategy, management and governance issues with our partners and management teams.   Post-investment input ranges from consistent board level support for strategic planning and corporate financial structuring to more involved work in restructurings, strengthening of management, and organization of follow-on capital.   Finally, EMP will always seek to actively control and manage its path to investment.