IT Service Provider

Borrower Overview
 

TriLinc has provided financing to an IT service provider in Brazil. Founded in 1988 in São Paulo, the borrower is an established information technology system integrator in Brazil. The borrower specializes in data center solutions and services, including virtualization, backup site, service desk, and cloud computing solutions. The borrower has offices throughout Brazil and partners with large multinational IT companies to deliver unique and tailored solutions to its core client base of mid-size Brazilian enterprises, as well as local and regional government entities. TriLinc’s term loan financing provides the borrower with a source of medium term liquidity to purchase equipment needed to service newly-attained contracts and existing supplier accounts. The borrower anticipates that TriLinc’s financing will also support its efforts to increase its employee base in line with its revenue and growth projections.

 


Market Overview

Brazil is classified as an upper middle-income country by the World Bank.1 Between 2010 and 2014, average annual GDP growth rates of 3.23% have positioned Brazil’s economy as the seventh largest in the world.1 Brazil’s export activity has traditionally been dominated by soybeans and derivatives, petroleum and gas, vehicles, corn, and wheat.2 Conversely, the country’s main imports are focused in machinery, motor vehicles, petroleum and natural gas, organic chemicals, and plastics.2 Brazil’s importance in the global economy is further reflected by its hosting of top-tier international athletic events, such as the 2014 World Cup and 2016 Summer Olympic Games.

Brazil meets TriLinc’s country standards for its performance across relevant growth, stability, and access metrics.3 With a GDP of $2.3 trillion, the country is the largest economy in the Latin America and Caribbean region, and the second largest in the Western Hemisphere.4 Supporting its economic position in the region is the country’s developed financial market, sophisticated business community, and large market size. Brazil’s small and medium enterprise sector, which generates approximately 43% of Brazil’s GDP and 63% of its labor force,5 is a vital component of the country’s economy. In 2014, an estimated $161.6 billion in net foreign direct investment flowed into the region,6 helping to spur economic growth in Brazil and support an annual average GDP growth rate of approximately 3.6% for the region between 2010 and 2014.7


Additional Sustainability & Impact Highlights

  • On average, Brazilian SMEs with higher technology access grow their revenues by 16 percent more than SMEs with lower access, and generate 11 percent more jobs.5 Through its provision of technology solutions, the borrower contributes to its clients’ ability to generate higher earnings and employment.
  • To optimize energy usage and reduce waste, the borrower uses low-power light bulbs throughout its facilities, commits to using air conditioning only in extreme weather conditions, uses recycled paper for printing, and eliminates unnecessary printer use.
  • The borrower’s human resource policies include premium health insurance coverage, maternity leave, and fair hiring/recruiting, compensation, and career advancement practices. The company encourages its employees to participate in community service by providing them with flexible working schedules to pursue volunteer activities.

1The World Bank, World Development Indicators Database, Brazil, 2015. 2CIA, The World Factbook, 2015: Brazil. 3There is no assurance that our investment in this company or this market will be successful. 4The World Bank, World Development Indicators Database, 2015. 5The Boston Consulting Group, Ahead of the Curve: Lessons on Technology and Growth from Small-Business Lenders, October 2013. 6The World Bank, Data, Latin America and the Caribbean, 2015. 7The World Bank, Global Economic Prospects, June 2015.

The above information is as of the initial date of investment: November 16, 2015.

RISK FACTORS
There is no guarantee that TriLinc’s investment strategy will be successful. Investment in a non-listed LLC involves significant risks including but not limited to: ownership is restricted; no secondary market; limitation on liquidity, transfer and redemption of ownership interest; distributions made may not come from income and, if so, will reduce the returns, are not guaranteed and are subject to management discretion. TriLinc selects investments and conducts operations on behalf of its clients, and will face conflicts of interest. Investment with TriLinc is not suitable for all investors. Securities Offered through CommonGood Securities, LLC, a member of FINRA and SIPC.

An investment with TriLinc carries significant fees and charges that will have an impact on investment returns. Information regarding the terms of the investment is available by contacting TriLinc. This is a speculative security and, as such, involves a high degree of risk. Investments are not bank guaranteed, not FDIC insured and may lose value or total value. Some investments may have been made in an investment vehicle that is no longer open for investment. The highlighted investment may or may not have been profitable. There is no guarantee that future investments will be similar.

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