EMG’s broad natural resources mandate allows for “three-dimensional” diversity across:
- Geographies: six countries (those with historical precedents of rule of law and operating businesses/industry practices)
- Commodities: those that are integral to the global economy (i.e., oil, natural gas, iron ore, metallurgical coal, manganese, etc.)
- Business Functions: two separate business functions (upstream/extractive and midstream/deliverability)
By virtue of this structural diversification, EMG is able to dynamically adapt to the ever-evolving landscape and pursue key themes that emerge over time while de-emphasizing themes where the risk adjusted returns no longer remain sufficiently compelling.
Due to our team’s extensive experience operating assets, EMG has a strong emphasis on risk identification, management and mitigation and does not believe in simply outsourcing these responsibilities to a portfolio company management team.
We are dedicated to a science-based approach to the business. When making an investment in upstream/extractive projects or midstream/infrastructure projects, EMG makes a deliberate and concerted effort to analyze opportunities based upon subsurface fundamentals before making business decisions. EMG believes that the intrinsic value of any natural resource-based investment (whether in the extractive or deliverable part of the value chain) is grounded in the underlying reserve quality – i.e., rock characteristics and product qualities – and that high-quality resources truncate downside risk and allow for the preservation of margins.
EMG is focused on development of operating businesses with management teams with relevant experience in the particular jurisdiction and commodity. We do not invest in early stage exploration. EMG pursues upstream and midstream opportunities in core commodities that are integral to the functioning of the global economy.