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 advisory around commodity finance, trade facilities, and institutional credit structures. FG Capital Advisors is not a bank, lender, credit insurer, broker dealer, or retail investment adviser. The firm does not issue loans, guarantees, or insurance products. Any investment vehicle referenced is offered only to eligible institutional 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 client side, and formal agreements with regulated counterparties where required.
Investing in Trade Finance for Inflation-Adjusted Returns: Liquidity and Risk
Inflation punishes slow repricing. Long-duration coupons can look fine in calm cycles and feel exposed when costs and rates move quickly. Short-tenor, floating-rate private credit can offer a more responsive income profile, provided the underlying structure is built with hard controls.
FG Capital Advisors manages an institutional strategy investing in junior and senior tranches of securitized, insured trade receivables. Capital supports established trading companies with annual turnover of at least USD 500 million, a proven trade cycle, and documented controls. 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 This Segment Can Hold Up In Inflationary Conditions
The inflation-aware case for insured, securitized trade receivables is not a headline narrative. It is a structural argument that rests on three features.
- Short asset life. Receivables commonly sit within short commercial cycles, which can allow portfolios to rotate and reset pricing more frequently.
- Floating-rate behavior where applicable. Many programs price over benchmarks such as SOFR or EURIBOR, which can support repricing as base rates change.
- Controlled collections. The best programs rely on defined waterfalls, lockbox structures, and third-party administration rather than informal repayment expectations.
These attributes can help protect real returns relative to strategies that depend on long-dated fixed coupons. They do not remove credit or operational risk.
What We Invest In
We focus on securitized trade receivables programs with credit insurance and documented structural protections. The investment universe includes both senior and junior or mezzanine exposures, selected based on pool quality, insurer strength, obligor mix, and reporting standards.
Senior Notes
Over-collateralized senior positions in receivables pools. These positions are structured to prioritize collections and insurance proceeds after program costs, with the goal of stable income and downside containment.
Junior Or Mezzanine Notes
Subordinated tranches with higher coupons designed to compensate for first-loss exposure, subject to program caps, reserves, and eligibility frameworks. We assess these positions under tighter concentration and trigger standards.
Borrower And Counterparty Standards
The strategy is built around established trading companies with audited financials, repeatable trade cycles, and clear operational controls. We prefer counterparties with scale and documented performance histories, not fragmented one-off operators.
- Trading companies with annual turnover of at least USD 500 million.
- Insured obligors with vetted buyer and country profiles.
- Documented controls around invoices, assignment of proceeds, and collections.
- Sanctions and AML screening embedded in onboarding and ongoing monitoring.
Structural Protections That Support Stability
In securitized receivables, the safeguards inside the program matter more than broad market labels. We focus on mechanisms that can be tested through data and enforced through documentation.
| Protection | Purpose |
|---|---|
| Over-collateralization and reserves | Creates buffer capacity before note impairment. |
| Eligibility criteria | Defines obligor quality, invoice aging limits, and dilution thresholds for pool entry. |
| Performance triggers | Restricts new purchases or redirects cash when pool metrics weaken. |
| Controlled accounts and lockbox collections | Reduces diversion risk and improves cash visibility. |
| Third-party administration and trustee oversight | Supports independent reporting and enforcement discipline. |
| Credit insurance oversight | Monitors insurer ratings, limits, claims pathways, and concentration exposure. |
Energy, Metals, And Agri Exposure With Measured Controls
Our program coverage spans major commodity-linked trade corridors. For risk management, we focus on obligor dispersion, buyer quality, country limits, and insurer concentration. Commodity category matters, but it is one layer of a broader control system.
This approach supports diversification without relying on a single macro view of any one sector.
Liquidity Considerations
Receivables pools are inherently short-dated. Vehicle-level liquidity features, if available, are governed by final documents and can include notice periods, gates, and lock-ups designed to protect investors during stress and align redemptions with pool turnover.
What Institutions Should Evaluate
When comparing insured receivables strategies, the most important question is not whether the headline yield looks attractive. The most important question is whether the program mechanics protect capital in a real stress scenario.
- How strict are eligibility tests and how quickly do triggers activate when performance weakens?
- How is dilution tracked across buyer groups and sectors?
- Where does insurance sit in the waterfall and how aligned is coverage with actual loss pathways?
- How concentrated is the insurer stack and what limits apply per obligor and country?
- How transparent is weekly and monthly reporting?
The case for inflation-aware trade finance in this segment is built on short cycles, documented collections, insured obligors, and disciplined concentration limits. When those pieces are present, securitized trade receivables can support a stable income sleeve within an institutional private credit allocation.
For qualified institutional buyers and professional allocators, 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.
