Developing Economies – A Significant Opportunity for Investment

Annual consumption in emerging markets is estimated to reach $30 trillion by 20251, representing what we believe to be the largest growth opportunity in the history of capitalism.


Developing economies have seen strong GDP growth over the last several decades fueled mostly by Small and Medium-Sized Enterprises (SME’s). Formal SME’s contribute up to 60% of total employment, and up to 40% of national income (GDP) in emerging economies1.

The World Bank estimates 600 million jobs will be needed in the next 15 years to absorb the growing global workforce, and in emerging markets, most formal jobs are generated by SMEs which create 4 out of 5 new positions.2 These SMEs, however, are underserved by the financial markets. The International Finance Corporation has estimated the unmet demand for SME financing in developing economies to be as much as $1.1 trillion dollars.3

 

The Opportunity with TriLinc

  • Track record of earning market rate returns
  • Positive Social and Economic Impact with Investments
  • Target select high-growth economies

 

TriLinc provides investors with what we believe to be lower risk access to private investment opportunities available in select high-growth economies. At present, we operate in four global regions: Latin America, Southeast Asia, Sub-Saharan Africa, and Emerging Europe. TriLinc only operates in countries with a stable political climate, reliable legal systems and growing economies. To view our Global Impact in these regions, click here.

 

How We Do It

TriLinc provides term loans and trade financing to private, expansion stage middle market enterprises in carefully selected developing economies where access to affordable capital is significantly limited. Since 2013 TriLinc has:

  • Invested over $1 billion in 36 countries4
  • Sustained zero default losses5
  • A five year track record
  • Provided investors with a fairly consistent yield, stable value and low correlation to public markets

 

If you are interested in learning more, please contact us.


1McKinsey & Company, Winning the $30 Trillion Decathlon, 2012 2The World Bank: Small and Medium Enterprises Finance, 2018 3Closing the Credit Gap for Formal and Informal MSME’s, International Finance Corporation, 2013, Washington DC, IFC 4Transactions, economies and financed amounts as of 11/30/18. These investments occurred in more than one investment vehicle, not of all which may be open for investment. 5To date, TriLinc has not realized any loan losses, however the value of some loans have been marked down from their original loan amount and in such cases may no longer be accruing interest.