From Super Return Emerging Markets 2013 • The end of quantitative easing is nigh and there's a lot of volatility -- is that a fundamental change for emerging markets or just part of the ongoing volatility that you deal with all the time? Over the last 20 years of investing in emerging markets, we've seen this volatility in the currency and the flow of capital back and forth -- in many ways that opens opportunity. The fundamental fact is that if we look across our portfolios, regardless of the region, our companies continue to grow due to a fundamental tailwind coming in from the emerging consumer across these different markets. In a shift to a lower return market, you really need to find alpha and hence emerging markets. • Are there fundamental changes occurring in emerging markets? We're currently going through a phase which is causing a fundamental shift in the way that GPS are having to tackle problems and the biggest issue is around exits. The problem is that lots of people have done minority deals and relied on IPOs for the exit and that hasn't happened. There's no longer a different between developed and emerging markets in terms of exits -- GP need to add value; they have to have control or at least have significant influence in deals and really be an active investor because the days of buying low and selling high are over. • Certainly in emerging markets, you have to be on the ground -- that is a fundamental risk mitigator -- able to tap into what's really going on and most, importantly, be able to access the best managers. Having a sector focus is absolutely crucial as well as having operating partners on the ground who have the ability to really intervene, be aligned with the local managers, and really create value; that is absolutely key going forward. • Do you still believe there are good opportunities for private equity firms and investors to add value and create good returns in emerging markets? Actis have done about 110 deals and we've exited around 80 of them -- there's growth. The fundamental underpin of why an LP would invest in an emerging market is simple -- growth. • Emerging markets private equity -- I'm very bullish that it's going to outperform. • Themes and opportunities that are exciting at the moment for creating value in emerging markets. What's interesting is how fast markets can change. Look at India as an example.