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Emerging Market Trade Finance

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Impact Capital Partner’s Overview

FOR INSTITUTIONAL INVESTORS ONLY – This Fund manager is focused on facilitating trade finance by making short term private loans to private growth stage companies who are committed to responsible, sustainable management of their companies and to creating positive, measurable impact in their communities. The manager’s objectives are to provide current income, capital preservation and modest capital appreciation primarily through providing trade finance facilities to established, growth stage, middle market enterprises through a global network of institutional class investment partners in carefully selected developing economies where access to affordable capital is significantly limited. The shortage of capital helps create meaningful opportunity to generate competitive risk-adjusted returns and positive impact.

Transaction Details*

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Investment Process

The manager employs a disciplined, scalable investment process in its goal to identify appropriate countries, access a robust pipeline of highly selective investment opportunities, and effectively manage risk.  Designed to identify countries with strong growth fundamentals, favorable legal and political frameworks, and unrestricted capital access, target countries are selected through proprietary top-down macroeconomic analysis, augmented with bottom-up expertise from our local market origination partners.  

Origination Partners

Origination partners have been carefully selected based on their demonstrated track records, years of experience in their asset class, independent risk controls and established networks in their specific regions, countries and local markets.  

The Portfolio

The portfolio will consist primarily of directly originated trade finance facilities for established, sustainable private companies in need of growth stage financing, who are also committed to creating positive impact in their communities.

Understanding Trade Finance

“Trade is the lifeblood of the world economy and a key driver of global integration, helping small and medium enterprises (SMEs) to grow and create jobs. Trade finance is the engine of an estimated $16 trillion in annual global commerce and is fundamental to the movement of goods at all stages of the supply chain, especially in emerging markets.”

Manager Overview

  • Track record since June 2013
    • $660 million in Trade Finance transaction (as of 6/30/20)
    • 56 Small & Mid-Sized Businesses supported
    • 22 Developing economies
  • Investment Partner Model
  • Comprehensive Diversification
    • Across Regions
    • Across Countries
    • Across Sectors
    • Across Investment Partners
  • Short Duration
    • Maturities less than 1-year
    • Average Duration ~0.33 years
  • Good Liquidity
    • 1-year Lock & 25% quarterly
    • Self-Liquidating SMA
  • 100% US Dollar Denominated
  • 3rd Party Collateral Managers
  • Insurance on 100% of Trade Finance loans
    • Two most common types of insurance include:
      • Asset Insurance for goods in the warehouse
      • Cost Insurance and Freight (CIF), which is basically transport insurance, in the event anything happens during transit.
    • Both types of insurance are relatively low cost and are based on the type of goods
    • Sovereign Risk Insurance
      • A bit more expensive, but still not that high since the approved countries have relatively low sovereign risk
    • Credit Insurance Risk
      • Rarely needed because Manager is generally in the lowest risk type of Trade Finance

U.N. Sustainable Development Goals

  • SDG 1: No Poverty
  • SDG 2: Zero Hunger
  • SDG 5: Gender Equality
  • SDG 8: Decent Work & Economic Growth
  • SDG 9: Industry, Innovation & Infrastructure
  • SDG 12: Responsible Consumption & Production
  • SDG 17: Partnerships

About Impact Capital Partners

At Impact Capital Partners, our mission is to connect institutional capital with the growing impact investment market to address the world’s most pressing challenges. By utilizing impact investments, institutional investors are able to generate positive, measurable social and environmental impact alongside a financial return. We are constantly finding new impact investment opportunities in both emerging and developed markets, targeting market-rate returns. Schedule a call with us HERE if you’re interested in learning more about our impact opportunities.

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Disclaimers

1 Prospective investments that are sourced through a Foreign entity or Broker-Dealer (“FBD”) are offered to U.S. Institutional Investors through an engagement with Pinnacle Capital Securities, LLC (“Pinnacle”), member FINRA / SIPC, who is authorized to chaperone the FBDs under SEC Rule 15a-6.

2 All listed investment opportunities are intended for INSTITUTIONAL INVESTORS ONLY.

3 All listed investment opportunities may or may not be profitable. They are speculative investments and, as such, involve a high degree of risk. Nothing contained above shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument.

4 For Funded Opportunities, there is no guarantee that future investments will be similar.

5 Investment in a non-listed LLC involves significant risks including but not limited to: ownership is restricted; no secondary market; limitation on liquidity, transfer and redemption of ownership interest; distributions made may not come from income and, if so, will reduce the returns, are not guaranteed and are subject to management discretion.

6 Impact Capital Partners is dependent upon its Fund Mangers and FBDs to select investments and conduct operations.

7 Total facility amounts represent the proposed amounts that would be available to the borrower under an agreement. This amount may change over time.

8 Interest rates include contractual rates and accrued fees where applicable and are gross of fund fees and expenses. This metric is not a measure of investment performance nor is it necessarily indicative of distributions that the Fund Manager may provide to investors.

9 All industry updates are provided to Impact Capital Partner by their Fund Managers and FBDs.

UN SDG ALIGNMENT

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