Core Benefits of Trade Finance Investing

• Low Historical Defaults: Industry data shows default rates below 0.2% even during stress periods, driven by self-liquidating structures and strong collateral backing.
• Short Tenors: Typical facility terms range from 30 to 180 days, limiting duration risk and allowing rapid capital turnover.
• Collateral Protection: Loans secured by purchase orders, receivables, inventory or letters of credit reduce credit losses and support recovery.
• Steady Yield: Target returns of 6–12% IRR, depending on geography, counterparty risk and collateral quality.
• Low Correlation: Trade finance performance is uncorrelated with equity and bond markets, offering diversification benefits in multi-asset portfolios.

Growing Global Demand for Trade Finance

Small and mid-sized exporters and importers face an annual working-capital shortfall of over USD 1.7 trillion. Emerging-market corridors in Asia, Africa and Latin America account for more than 60% of trade-finance demand, creating opportunities for well-underwritten strategies.

Regulatory initiatives, such as Basel III reforms and digital trade-finance platforms, are expanding capacity and reducing transaction costs, making structured portfolios more scalable for institutional investors.

Global Commodity Flows & Trade Volumes

Merchandise trade exceeded USD 22 trillion in 2023. Key commodity sectors—energy, metals, agriculture—represent roughly 40% of these flows. For example:

• Energy: Crude oil and natural gas exports total over USD 4 trillion annually.
• Metals & Minerals: Iron ore, copper and aluminum shipments account for USD 1.5 trillion.
• Agriculture & Food: Grains, coffee and palm oil reflect USD 800 billion in trade.

Containerised goods—electronics, consumer products—move through global hubs at over 800 million TEUs per year, underpinning supply-chain financing needs at every stage.

Accessing Trade Finance Through Our Fund

• Underwriting Expertise: Credit teams review contract terms, counterparty ratings and collateral legal perfection under local and international rules.
• Portfolio Diversification: Allocation across regions, sectors and facility types to balance yield and risk.
• Active Monitoring: Real-time tracking of document flows, performance metrics and market indicators via proprietary analytics.
• Credit Enhancement: Integration of confirmed L/Cs, ECA guarantees and insurance wraps to strengthen credit profiles.

Why Allocate to Trade Finance Today

• Supply-Chain Resilience: Growth in regional trade and nearshoring trends increases demand for tailored working-capital facilities.
• Interest Rate Environment: Floating-rate income adjusts to rising benchmarks, protecting real yields.
• Regulatory Support: Enhanced capital allocations by banks under sustainable-finance guidelines amplify private-capital roles.
• Scalable Deal Flow: Digital platforms and trade-finance marketplaces unlock more transactions at institutional scale.

Disclaimers & Important Considerations

This document is for accredited investors and does not constitute an offer to sell or a solicitation to buy securities. Trade finance investments carry credit, operational and legal risks, including possible loss of principal.

Past performance is not indicative of future results. Prospective investors should review the private placement memorandum, consult independent legal, tax and financial advisors, and verify that trade finance aligns with their investment objectives.