LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc”) announced that it has approved a new Investment Manager, TransAsia Private Capital Ltd. (“TransAsia”), to act as a sub-advisor on term loan investment opportunities in Southeast Asia.
TriLinc is an impact investing fund that provides growth-stage loans and trade finance to established small and medium enterprises (“SMEs”) in developing economies where access to affordable capital is significantly limited. Impact Investing is defined as investing with the specific objective of achieving a competitive financial return as well as creating positive, measurable impact in communities across the globe.
TriLinc complements its global macroeconomic portfolio optimization and management with investment services from experienced sub-advisors that have solid track records in target asset classes and geographies, and ample access to high-quality investment pipeline.
Established in 2013, TransAsia is a Hong Kong based asset management firm focusing on extending short-and long-term trade finance to mid-sized private companies in South and Southeast Asia, such as trading companies, agricultural producers, and manufacturers, who sell directly to overseas buyers. Since its inception, TransAsia has deployed approximately $350 million in over 850 Asian trade finance transactions with no default losses. TransAsia’s extensive in-country network allows the firm to leverage its reputation in the region to strengthen historical relationships and develop new relations with prospective clients. TransAsia’s competitive advantage is supported by its sophisticated institutional investor base.
TransAsia has recognized that over the past five years, the demand for Asian trade finance, particularly for longer-dated transactions, has outpaced supply due to changes in regulatory capital requirements. TransAsia aims to reduce the widening gap in the lending market, created in large part by banks that have reallocated credit lines to larger borrowers. TriLinc’s partnership with TransAsia will provide longer dated trade finance and term loans to borrowers in Indonesia, Malaysia, Philippines, Cambodia, and Thailand, matching the demand of target borrower companies in the region, and helping them achieve sustainable growth through more flexible financing options.
TransAsia’s three managing partners are well-versed in Asian debt asset management with 90 years of combined experience in banking, private equity, and private debt. Each partner has robust experience in Asian markets developed at leading global financial institutions such as Lloyds, Chase Bank, Income Partners Asset Management, MeesPierson/Fortis Bank, and HypoVereinsbank. TransAsia’s strong credit analysis and structuring expertise is further supported by an in-house credit scoring system that is used for risk structuring, management, and monitoring.
“Recognizing the unprecedented investment and impact opportunities in Southeast Asia, TriLinc has partnered with TransAsia to further develop its longer-dated trade finance and term loan capabilities,” said Gloria Nelund, TriLinc’s CEO. “TransAsia’s longstanding borrower relationships and institutional quality approach to portfolio management will extend our activity in the region and enable us to generate competitive risk-adjusted returns for U.S. investors while meeting the financial demands of local SMEs.”
“We are delighted to be partnering with TriLinc in Asia on impact investing within a defined Environmental, Social, and Governance framework,” stated TransAsia’s Managing Partners. “This introduces an important new source of capital which will go a long way in promoting responsible business practices within the SME sector in the region.”
About TriLinc Global Impact Fund
TriLinc is a non-traded, externally managed, limited liability company that makes impact investments in SMEs in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. TriLinc invests in SMEs through experienced local market sub-advisors, and expects to create a diversified portfolio of financial assets consisting primarily of collateralized private debt instruments. TriLinc’s investment objectives are to generate current income, capital preservation and modest capital appreciation. In addition, the Company aggregates and analyzes social, economic, and environmental impact data to track progress and measure success against stated objectives.
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