First full $40m of funding secured
[email protected] Capital plc, the innovative fintech platform which provides the Inventory Monetisation© service to manufacturing and trading companies, is pleased to announce the following key developments regarding its Group inventory funding activity.
Global Inventory Monetisation Fund launched
As stated in the recent 2020 Annual Report, following the acquisition of TradeFlow Capital Management Ltd (“TradeFlow”), the Company now manages three Open-Funding structures, in addition to the Bank-funding routes. The three open funding routes are:
· the inventory-backed securitisation note programme, also distributed by StormHarbour Securities LLP;
· a Shariah-compliant investment product;
· a new proprietary structure, which includes the two existing TradeFlow Funds of which Tradeflow is also the investment advisory company.
With reference to the new structure, the Company is pleased to announce that it has agreed with Apex Group to launch a comprehensive inventory monetisation fund, comprising four components (“the funds”):
· T wo funds focussed on “inventory in-transit” monetisation (import/export transactions), advised by TradeFlow. TradeFlow has a positive track record over the past three years;
· Two new funds, focussed on “warehoused goods monetisation”. These funds will also be advised by TradeFlow and will be focused on UK, UK Common law (including MENA region) and Italian monetisation transactions.
It is expected that the Global Inventory Monetisation Fund will establish new components following the Group’s business expansion (i.e. new geographies, special situations, etc.). The funds historically advised by TradeFlow have enjoyed consistent returns, returning + 6.01% net in 2019 and + 5.93% net in 2020, delivering net Average monthly returns of +50bps to investors with a volatility of returns below 0.75%.
Emerging Asset Management Ltd. (“EAM”, part of the Apex Group) will provide administration services to the four funds. Apex Group, which provides turnkey solutions for fund launches and fund administration services, announced in March 2021 that it has reached over $1bn of assets under administration.
$40m of new commitment, boosting the inventory monetisation transactions
The Company is also pleased to announce that the TradeFlow Capital funds received an Investment Grade final rating from a leading ratings agency for its 4-year Senior Note. Leveraging the global investor network of the Group, the funds have already secured investors subscribing for the full, initial $40m issuance.
A further trading update, which will also include the financial impact of these latest developments, is expected by the end of August.
SYME Chief Executive, Alessandro Zamboni said:
“The launch of our Global Inventory Monetisation Fund and the success of TradeFlow’s latest funds issuance are further evidence of the strength of this innovative business model and the highly positive benefits which the acquisition is starting to confer for our Group. It is also further proof of the potential and the synergies between SYME and TradeFlow, leveraging our collective relationships and combined competences in the financial services industry. The Global Inventory Monetisation Fund is a unique investment opportunity for the market. It offers the potential to support the real economy and, at the same time, generates attractive returns protected by the high-quality risk management standards and state-of-the art technologies adopted by the platform which runs the underlying inventory transactions.
“The potential for our business is enormous and we can start to think big, by integrating the funding capacity of the four funds in order to offer an end-to-end inventory monetisation proposition to corporates and international supply chains”.
TradeFlow Capital CEO & Chief Investment Officer, Tom James, commented: “The Investment Grade rating for our Senior Notes program confirms the robustness of our risk transformation and risk management architecture which we designed and built in to the Trade Flow Funds strategy”.
John Collis, the CRO of TradeFlow Capital, added: “We have succeeded in transforming SME Physical Commodity import/ export transactions in to a long term Investment Grade, Fixed Income alternative product for Investors. It is a very exciting time for our Group and for our Investors”.
[email protected] enables businesses to generate cashflow, via a non-credit approach and without incurring debt, by monetising their existing stock which intend to sell to the end-customers or goods/ commodities part of a typical import/ export transaction. SYME’ Global Inventory Monetisation Fund enables strong companies to improve their working capital cycle. The funds don’t monetise inventory for companies in financial difficulty or with inventory that they are struggling to sell.
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