FG Trade & Commodity Fund (FG-TCF)
Short-Term, Asset-Backed Yield Financing Global Trade
The FG Trade & Commodity Fund (FG-TCF) is a private credit vehicle providing short-term, asset-backed financing for trade involving Sub-Saharan Africa. Managed by a specialist team with over $1.5B of deals completed to date and no defaults, the fund provides working capital to creditworthy commodity trading firms (primarily in Europe & North America) to finance physical trade with African counterparties.
The fund addresses the persistent trade finance gap in key African trade corridors where access to credit restricts growth, despite strong operational fundamentals. FG-TCF provides secured, self-liquidating loans tied directly to physical cross-border trade flows, supporting African producers while creating value for our investors.
Key Investment Terms
- Target Return: Up to 11% net annualized (USD, no leverage)
- Facility Size: USD 3M - 20M per transaction
- Tenor: 60 to 180 days
- Collateral: Fully collateralized by real goods, contracts, & assignments
- Active Pipeline:$400M+ active deals available
- Governance: Institutional-grade framework with oversight from regulated advisors
Investment Strategy Highlights
Short-Duration Structured Finance
The fund finances tangible trade transactions, collateralized by underlying assets like export contracts, bills of lading, or warehouse receipts.
Real Asset & Impact Focus
We prioritize trade flows in agribusiness, light manufacturing, and strategic minerals(copper, cobalt, etc.). Our strategy is aligned with UN Sustainable Development Goals.
Disciplined Risk Management
Risk is managed through rigorous underwriting, third-party collateral management, cargo insurance, and direct monitoring of transactional cash flows.
On-the-Ground Institutional Execution
With deep in-country networks, all deals are structured with trusted local partners. Our governance and KYC frameworks meet institutional investor standards.
Why Investors Partner with the FG Trade & Commodity Fund
- Direct exposure to a high-yielding pipeline of short-term, asset-backed credit supporting Africa’s real economy.
- ESG-positive exposure to uncorrelated cash flows tied to physical trade, offering a potential hedge against inflation.
- Managed by a seasoned team with a proven track record of structuring and executing private credit transactions in African markets.
