Working Capital Finance - Alternative Private Credit

 

 

 

 

 

 

 

 

 

 

Access to uncorrelated assets with historically favorable risk & returns.

Consistent Execution Since 2020, our team has been successfully executing this strategy without any defaults. OC Trade Finance SPV LP acquires accounts receivable and promptly assigns them to US-based, regulated partner banks. These banks assume 100% of the assets on their balance sheets, ensuring a secure and transparent process.
Join Our Proven Investment Strategy We are now welcoming external investors to participate in this proven investment approach through our dedicated fund, OC Trade Finance I LP.

Strategy Overview

Low risk/return profile.

Receivables Finance Highlights.

Discover our new product, a standardised & yield-oriented investment opportunity.
Fund
Origination,
strategy execution
Currency
OC Trade Finance I LP, Delaware
Originate Capital Inc.
USD
Target Return
Distributions
Security
3M SOFR plus 10% pa
Quarterly
Limited Partnership Interests

yield-oriented investment strategy with short maturity profiles.

Trade receivables offer investors comparably high risk adjusted returns. Trade finance assets exhibit favourable credit risk profiles to comparable assets at a low interest rate and spread sensitivity.

More mature financial technologies contribute to the process automation, thus ensuring higher efficiency and seamless solutions.

Supply chain finance is a rapidly evolving industry: the global volume of fundable trade receivables is around $US 2 trillion, and the potential revenue pool has reached $US 20 billion. However, the supply chain finance market potential remains largely untapped.

No long tail risk due to short maturities.

Here is what you need to know.

Key benefits and risks facts.
Benefits

 Attractive target preferred return of 3 Month SOFR plus 10% p.a.

• Short-term maturity profile and spread adjustment to the changes in the market environment.

 All obligors must match our stringent eligibility criteria or be insurable.

Risks

 Limited Partnership Interests do not offer capital protection.

• There is no guarantee that the obligor will repay his debt in full.

 Reaching the target return depends on the availability of investment opportunities.

Need more precise information?

Check out our detailed executive summary.

Unique private debt strategy.

An uncorrelated asset class to meet your diversification needs. 

A.

Exposure to trade finance assets provides better diversification of your private credit portfolio.

B.

Exposure to trade finance offers a way to profit from an attractive low-risk asset class.

compelling investment case.

A few key facts of why choosing trade finance.
Quality assets

Investment grade companies or transactions that can be secured by credit insurance.

Non-correlated assets

This asset class is non-correlated with other asset classes and thus an attractive way to diversify your portfolio.

Attractive yields

China and APAC supppliers pay at least 12% p.a. to finance EU/US counterparty risk.

geographic diversification

dedicated, personal support

credit enhancements

Your private credit solution.

Key transaction criteria highlights.
Payment promises from buyer

• Companies with more than 2 years of business activity.
Eligible as defined in the Private Placement Memorandum
 No legal action against the company.

Supplier selection & pricing

• Define and provide a set of minimum selection criteria for suppliers.
 Focus mainly on performance and relationship track record.
 Dictate the pricing to the SME suppliers based on the selection criteria and volume.

Highly diversified and stable communities

• Different industries
(retail, textiles, automotive, wine).
 Multiple recurring invoices per month.
 Strong asset quality due to stable supply chains.

Credit enhancements

• Irrevocable Payment Undertaking (IPU) under NY law and juristiction executed by the Supplier and Buyer.
 Reduction of advance rates.
Credit insurance.

Efficient risk mitigation.

Multiple approaches to reduce risks for investors.

1.

Issuer risks

Effective segregation of the asset portfolio and associated income stream through an independent vehicle, separated from the asset origination and servicing company.

2.

Asset related risks

Historically low default rates contribute to a consistent return profile of trade finance as an asset class.

3.

Performance risks

The risk that the exporter will perform according to the terms of its contract lays with the importer and ultimate obligor. Different types of collateral can mitigate such risks further according to the investor’s appetite.

strategy that works well.

See our recent transactions and track record.
Financed by US-based banks

Trade receivable assets represent a type of short-term private credit that offers investors numerous advantages, including zero duration risk, stable returns, exceptionally low default rates, appealing risk adjusted yields, and minimal volatility. Here an overview of our track record and past performance.

Learn more

Start investing today.

We look forward to helping solve your portfolio’s needs.