Notice. FG Capital Advisors is a trade and capital advisory firm with a focus on carbon, commodities, and structured credit. The firm provides financial modelling, analytical support, and sponsor-side advice around commodity finance, trade facilities, and related capital structures. FG Capital Advisors is not a bank, lender, credit insurer, broker dealer, or retail investment adviser and does not issue loans, guarantees, or insurance products. Any facility, guarantee, derivative, or investment is provided by regulated counterparties under their own licences and documentation. Any investment vehicle referenced is offered only to eligible investors pursuant to confidential offering documents and applicable law. All potential transactions are subject to KYC and AML checks, sanctions screening, investment committee decisions, independent legal and tax advice on the investor side, and formal agreements with relevant regulated entities.
Investing In The Trade Finance Asset Class
Trade finance sits at the cash-conversion heart of global commerce. Goods move, invoices settle, and short-tenor credit bridges timing gaps that even well-capitalized trading companies prefer not to fund entirely with balance sheet equity.
FG Capital Advisors manages a professional allocator strategy focused on junior and senior tranches of securitized, insured trade receivables. The objective is steady private-credit income with 6–8% net IRR targets and portfolio diversification. Targets are objectives, not guarantees. Current assets under management are approximately USD 800 million.
Review The Investment VehicleWhy Allocators Consider Trade Finance
The investment case is driven by structure, not hype. In well-designed programs, receivables pools are short-dated, monitored with disciplined eligibility tests, and supported by credit insurance and controlled collection mechanics.
This can create an income profile that fits alongside broader private credit allocations, with a risk narrative that is linked to real trade cycles rather than multi-year enterprise forecasts.
- Short asset lives, commonly aligned with 30–180 day receivable cycles.
- Defined collection waterfalls and controlled accounts.
- Insurance frameworks designed to reduce loss severity when obligor events occur.
- Hard concentration limits across obligors, sectors, countries, and insurers.
Our Core Strategy
We invest in securitized pools of insured trade receivables connected to established trading companies with documented controls and audited financials. Our baseline borrower preference focuses on global trading platforms with annual turnover of at least USD 500 million.
Senior Notes
Over-collateralized senior positions in receivables pools. These are structured to prioritize collections and insurance proceeds after program costs, with a focus on stable income and downside containment.
Junior Or Mezzanine Notes
Subordinated tranches with higher coupons designed to compensate for first-loss exposure, assessed under stricter limits and performance trigger standards.
Sector Breadth With Real Risk Controls
Our receivables exposure spans major trade corridors linked to energy, base metals, and agricultural flows. The underwriting emphasis remains consistent across sectors. We focus on obligor quality, buyer dispersion, country limits, and insurer concentration.
This is where many investors misread the asset class. Commodity headlines matter less than the mechanics inside the program. Eligibility criteria, aging rules, dilution tests, and claims pathways are what drive risk behavior through cycles.
What Protects Capital In A Receivables Program
The stability of a securitized receivables strategy depends on the internal design of each program. We prioritize structures where protections are measurable and enforceable through documentation and reporting.
| Protection Layer | What We Look For |
|---|---|
| Eligibility tests | Tight definitions for obligor quality, invoice aging, dilution thresholds, and buyer concentration at the pool level. |
| Over-collateralization and reserves | Buffers that absorb performance slippage before note impairment. |
| Performance triggers | Clear rules that restrict new purchases or redirect cash when pool metrics weaken. |
| Controlled collections | Lockbox and controlled account frameworks that reduce diversion risk and improve cash visibility. |
| Third-party administration and oversight | Independent reporting discipline, standardized data, and enforceable program governance. |
| Insurance architecture | Acceptable insurer ratings, clear limits, pre-agreed claims processes, and monitored insurer concentration across the portfolio. |
Sourcing And Program Access
Our approach is built on program-level access and repeatable underwriting. We prioritize channels that bring disciplined documentation, credible obligor frameworks, and consistent reporting cadence.
We also assess how each program sponsor manages origination, compliance, and conflict controls. A strong receivables strategy depends as much on operational governance as it does on credit analysis.
What This Can Mean For Investor Portfolios
For professional allocators, insured trade receivables can serve as a short-tenor income sleeve within broader private credit and alternatives programs. The return objective is designed to prioritize stability and repeatability over headline yield.
Correlations can rise during stress. This is why we focus on rotating pools, disciplined caps, and insurance frameworks aligned with real loss pathways.
The trade finance asset class rewards disciplined structure and consistent monitoring. For investors who want short-dated private credit exposure tied to real trade cycles, insured securitized receivables can offer a clear and scalable allocation path.
If you are a qualified institutional buyer or professional allocator evaluating a commitment into this segment, our Investor Relations materials provide the official strategy overview, program characteristics, and reporting framework.
Review The Investment VehicleDisclosure. This page is for general information only and does not constitute legal, tax, investment, financial, or regulatory advice. Nothing on this page is an offer to sell or a solicitation of an offer to buy any security. Any investment vehicle will be offered only pursuant to confidential offering documents and only to eligible investors in compliance with applicable law. Target returns and risk metrics are objectives and not guarantees. Investments involve risk, including the possible loss of capital. Liquidity, subscriptions, and redemptions, if available, are governed by final documents and may include lock-ups, gates, and notice requirements.
