TriLinc Global Impact Fund has appointed investment manager Alsis Funds to help it make new loans in Latin America that meet the fund’s criteria of generating attractive returns while creating socio-economic benefits in developing economies.
The agreement will help TriLinc access new borrowers in Mexico and across Latin America via Alsis, as it looks to build an international impact investing fund with up to $1.5 billion of investment firepower. The deal will enhance TriLinc’s team of regional sub-advisers which already includes Helios Investment Partners in sub-Saharan Africa and AIC in Southeast Asia, as well as IIG and The Rohatyn Group in Latin America.
“TriLinc’s partnership with Alsis represents the first time that we will be able to take advantage of the investment and impact opportunity set of the growing SME segment in Mexico,” said Gloria Nelund, TriLinc’s chief executive.
TriLinc was co-founded by former Deutsche Bank’s US private wealth management division boss Nelund to make loans and provide asset-based finance to small and medium-sized companies in countries where access to capital is otherwise restricted. The group has made some $130 million of loans, which recently includes a $2.75 million to a diaper manufacturer in Peru and $9 million to a beef exporter in Argentina.
TriLinc launched its Global Impact Fund in 2012, hoping to raise up to $1.25 billion from US investors with as little as $2,000 to invest. Under those initial plans, it can recycle up to $250 million of capital for new investments, taking total fund capacity to $1.5 billion.
Alsis concentrates on secured loans collateralised by purchase contracts as well as backing companies with financial or real estate assets. It sources deals in Mexico and across Latin America through its own network of contacts, with its senior team also drawing on over 100 years of combined experience at banks including Bear Stearns, BBVA Bancomer, Deutsche Bank and JPMorgan.
Alsis’s own investor base comprises public pension funds, family foundations and fund of funds in the US and Canada. Among them is the US government’s development finance institution, the Overseas Private Investment Corporation.