Proposed Delaware limited partnership.
Trade Finance Capital Fund I
Short-Duration Private Credit Built Around Trade
Trade Finance Capital Fund I is a proposed private credit strategy focused on short-dated trade receivables, approved payment obligations and bank-supported trade assets arising from verifiable commercial activity.
The strategy is designed around capital preservation, identifiable repayment sources, short contractual duration and disciplined portfolio diversification. Preference is given to exposures where the underlying commercial performance has already substantially occurred.
Short-duration contractual payment obligations.
Proposed U.S. Regulation D private offering.
Subject to definitive legal structuring.
Verification required before any investment.
Investment Thesis
The Fund finances the period between commercial performance and payment.
Trade frequently creates a temporary mismatch between when a supplier completes its obligations and when a financially stronger buyer is contractually required to pay. Trade Finance Capital seeks to provide capital against that payment obligation.
Preference is given to transactions where goods have been delivered, services completed or documentary conditions satisfied.
The Fund seeks clearly documented obligations owed by acceptable corporates, institutions, governments or financial institutions.
A portfolio concentrated in short-dated assets can recycle capital frequently and continually refresh underwriting.
Receivable assignment, controlled collections, security and credit enhancement may be incorporated where appropriate.
Investment Mandate
Assets We Intend to Finance
The core portfolio is intended to comprise short-duration trade assets with verifiable underlying commercial activity and defined contractual payment obligations.
Approved Corporate Receivables
Receivables arising after completed commercial performance and owed by qualifying corporate or institutional account debtors.
- Approved invoices
- Completed delivery
- Defined maturity date
- Controlled payment mechanics
Insured Trade Receivables
Eligible domestic or export receivables supported by acceptable trade credit insurance.
- Commercial credit risk
- Selected political risk
- Policy eligibility review
- Claims-compliance monitoring
Bank-Supported Trade Assets
Accepted or confirmed payment obligations where credit exposure is substantially transferred to an acceptable financial institution.
- Accepted documentary credits
- Confirmed letters of credit
- Deferred-payment obligations
- Eligible bank risk
Approved Payables
Supply-chain finance exposures where an acceptable buyer has approved an amount due to its supplier.
- Approved buyer obligation
- Large corporate account debtors
- Defined payment date
- Limited remaining performance risk
Receivables Financing Facilities
Senior secured borrowing-base facilities against diversified pools of qualifying commercial receivables.
- Eligibility criteria
- Advance-rate controls
- Concentration tests
- Controlled collections
Opportunistic Trade Finance
A limited allocation may be deployed into higher-yield trade structures where enhanced protections justify the additional risk.
- Purchase-order finance
- Pre-export finance
- Inventory finance
- Structured commodity finance
Portfolio Construction
Diversification Is Part of the Credit Strategy
Trade Finance Capital is intended to hold many independently performing exposures rather than depend on a small number of large transactions. Portfolio construction will consider obligor, seller, originator, industry, geography and asset structure.
Approved Corporate Receivables
40%–65%
Insured Trade Receivables
15%–30%
Bank-Supported Trade Assets
10%–25%
Approved-Payables Finance
0%–20%
Receivables Financing Facilities
0%–20%
Opportunistic Trade Finance
Maximum 10%
Capital Cycle
From Completed Trade to Recycled Capital
The core strategy seeks to enter after the commercial risk has been materially reduced and exit through a scheduled contractual payment.
Goods are delivered or qualifying services are completed.
The buyer's obligation is documented, approved or otherwise verified.
The Fund purchases, discounts or finances the qualifying trade asset.
The relevant account debtor or financial institution pays at maturity.
Principal and realized income become available for redeployment.
Underwriting Framework
Credit, Trade, Fraud and Legal Risk Are Evaluated Separately
A strong account debtor is not sufficient by itself. The underlying trade must also be genuine, legally enforceable and operationally capable of producing the expected payment.
Credit Quality
Financial strength, liquidity, leverage, rating, payment history and sector conditions.
Operating Integrity
Ownership, trading history, financial condition, customer relationships and dilution history.
Transaction Verification
Contract, invoice, shipment, proof of delivery and buyer acceptance where applicable.
Independent Validation
Buyer callbacks, account verification, duplicate financing searches and document authentication.
Enforceability
Assignment rights, perfection, set-off rights, governing law, liens and insolvency treatment.
KYC, AML & KYT
Beneficial ownership, sanctions, counterparties, banks, vessels, jurisdictions and payment flows.
Collections
Controlled accounts, payment direction, collateral arrangements and servicing architecture.
Concentration
Exposure is assessed across account debtors, sellers, industries, countries and originators.
Maximum ordinary exposure as a percentage of NAV.
Maximum ordinary aggregate seller exposure.
Maximum ordinary underlying payment-obligor exposure.
Maximum ordinary sector concentration.
Maximum indicative Fund-level leverage as a percentage of NAV.
Maximum portfolio allocation to higher-risk trade assets.
Indicative Fund Terms
Proposed Fund Economics and Liquidity
All terms remain preliminary and subject to definitive Fund documentation, legal structuring and applicable regulatory requirements.
Fund
Trade Finance Capital Fund I, L.P.
Target Fund Size
USD 100 million
Initial Closing Target
USD 25 million
Hard Cap
USD 150 million
Target Net Return
8%–10% per annum*
Base Currency
USD
Standard Minimum
USD 1 million
Discretionary Minimum
USD 250,000
Management Fee
1.50% per annum of NAV
Performance Allocation
15%
Preferred Return
6% per annum
Initial Lock-Up
12 months
Redemptions
Quarterly following lock-up
Redemption Notice
90 days
Quarterly Fund Gate
10% of NAV
NAV
Calculated monthly
Target Asset Tenor
30–120 days
Target Portfolio WAL
Below approximately 90 days
Preferred Risk
What the Core Portfolio Is Designed to Own
The Fund favors assets where the remaining investment question is principally whether a clearly identified counterparty will satisfy an already established payment obligation.
- Completed or substantially completed commercial performance
- Approved or independently verified receivables
- Institutional-quality underlying account debtors
- Short contractual maturities
- Clearly documented repayment sources
- Controlled collection mechanics where appropriate
- Credit insurance or bank support where economical
Initial Exclusions
Risk the Core Strategy Intends to Avoid
The Fund is not intended to operate as a general working-capital lender, speculative commodity vehicle or project-development fund.
- Speculative commodity positions
- Unverified commodity allocations
- Transactions supported solely by letters of intent
- Unsecured general corporate working-capital loans
- Materially disputed invoices
- Unverified warehouse receipts
- Development-stage project finance
- Repayment dependent primarily upon future fundraising
- SBLC monetization or proof-of-funds transactions
Proposed Fund Architecture
Conventional U.S. Private Fund Structure
The Fund is intended to use a conventional Delaware private-fund architecture with the investment vehicle, general partner, investment manager and carried-interest economics separated into distinct legal entities.
Proposed Delaware limited partnership holding the Fund's investment portfolio.
Proposed Delaware limited liability company acting as general partner of the Fund.
Proposed manager responsible for underwriting, investment decisions, portfolio management and risk oversight.
Proposed entity through which applicable performance allocation economics may be distributed.
Important Information
Preliminary Fund Information
This page is provided for informational and discussion purposes only. It does not constitute an offer to sell, a solicitation of an offer to purchase, or a recommendation regarding any security, investment fund interest or financial instrument. Any offering of interests in Trade Finance Capital Fund I, L.P. would be made solely pursuant to definitive offering and governing documents and in accordance with applicable securities laws.
The proposed U.S. offering is intended to rely on Rule 506(c) of Regulation D. If implemented under that exemption, purchasers would be required to qualify as accredited investors and their accredited investor status would be subject to verification in accordance with applicable requirements.
Fund structure, strategy, investment criteria, portfolio allocations, concentration limits, leverage limits, fees, liquidity terms and all other terms shown above are indicative only and remain subject to revision before execution of definitive Fund documents.
*Target returns are objectives only. They are not guarantees, projections of actual performance or promises of future results. There can be no assurance that the Fund will achieve its investment objective or any target return. Trade finance and private credit investments involve substantial risks including credit risk, fraud risk, counterparty risk, legal risk, enforceability risk, operational risk, liquidity risk, concentration risk, leverage risk, regulatory risk and possible loss of invested capital.
References to proposed legal entities do not represent that such entities have been formed, registered or authorized unless and until those steps have actually occurred. No professional service provider should be represented as retained or appointed until the applicable engagement has been formally executed.