Investment Highlights PDF Print E-mail

 

TriLinc seeks to help create a successful middle class through investing in the “missing middle” of the economic pyramid, with a specific focus on Small and Medium Enterprises (SME’s), middle class consumers and community-based environmental projects. These sectors are among the most developmentally-critical components of the emerging markets. Research shows that each dollar invested in the SME sector creates more than $13 in total impact, while direct SME investments, on average, result in growth of more than 25% in both employee payrolls and wages.1

 

Investment Strategy

Disciplined Investment Strategy

  • Effective deployment of $1 - $1.5 billion in retail capital
  • Compliance with SEC Investment restrictions
  • Meets investor hurdles of 6% current pay and target IRR of 10 - 12%

Experienced Sub-Advisors

  • Presence and focus in specific region or specialty sector to facilitate quality deal flow
  • Proven track record within emerging market SME space
  • Willingness and ability to implement TriLinc’s credit processes and impact assessment and tracking

Effective Risk Management

  • Active participation in all Sub-Advisor Investment Committees
  • Partnership with International Finance Institutions for low cost leverage, first loss guarantees and country risk insurance (i.e. OPIC, IFC, FMO, etc.)
  • Employment of rigorous risk management policies and procedures with oversight by the Risk Management Committee

 

Current Sub-Advisor Example

  • Specialty premier credit investment platform for small to medium-sized businesses in Latin America
  • Currently manages $600 million
  • Principals each have 20+ years industry experience with over $40 billion deployed
  • Long term, multi-cycle approach to investing
  • Experienced in:
    • Senior Debt
    • Lines of Credit
    • Subordinated & Mezzanine Debt
    • Term and Bridge Loans
    • Other Structured Credit

 

Investment Strategy Overview

TriLinc generally employs an integrated approach to country selection, combining our top-down analysis with the bottom-up methodology of our regional sub-advisors

To maximize efficiency and appropriately manage risk, TriLinc will generally take a regional approach to sub-advisor selection, focusing on those with local presence, strong relationships and a track record in the region.

Initial target markets:

  • Argentina
  • Brazil
  • Bulgaria
  • Chile
  • Colombia
  • Costa Rica
  • Estonia
  • Ethiopia
  • Indonesia
  • Kenya
  • Peru
  • South Africa
  • Tanzania
  • Turkey

1 “Investing Beyond Impact,” Small Enterprise Assistance Fund (SEAF), 2011