Non-traded limited liability company, TriLinc Global Impact Fund (TriLinc), recently announced that it has approved a new sub-advisor for investment opportunities in Africa. Investment manager, Barak Fund Management Limited (Barak), will work with TriLinc on business expansion and socioeconomic development.
TriLinc is an impact investing fund, which means it makes investments in developing economies for small and medium sized enterprises, known as SMEs.
“As part of its investment and impact strategy, TriLinc has expanded its geographic reach to Africa and further developed its trade finance capabilities,” commented TriLinc’s CEO, Gloria Nelund. “Our partnership with Barak provides a robust platform for achieving these objectives, thanks to the firm’s strong presence in local African markets and its trade finance expertise,” she added.
Founded in 2008 and based in Africa, Barak focuses on trade finance for SMEs in the areas of agriculture and commodities and specializes in sourcing and originating soft commodity transactions that have strong collateral characteristics. To date, the company has completed close to $1 billion in transactions in sub-Saharan Africa and has affiliate offices in Mauritius and South Africa.
Portfolio Manager for Barak, Prieur du Plessis, stated, “We are delighted to be working with the TriLinc team in helping to drive market-oriented investment in Africa in a sustainable way.” He continued, “TriLinc is an ideal partner for us because the team understands the characteristics of working in Africa, and at the same time offers a global perspective. Initiatives such as this have a direct impact on the lives of job-seekers, workers and consumers of basic products in African communities.”
As sub-advisor, Barak will select and analyze potential investment opportunities and will receive a portion of the asset management as well as a portion of the incentive fees received by TriLinc as compensation for its services.
As of May 28, 2014, TriLinc’s total financing commitments for business expansion and socioeconomic development in Latin America and Southeast Asia was $28.7 million. It currently has three investments in South Africa, totaling $2.75 million.
TriLinc’s distributor is SC Distributors which RCS Capital Corp recently agreed to purchase through the acquisition of Validus Strategic Capital Partners.