Short Duration Receivables – Diversified portfolio of accounts receivable factoring, supply chain (inventory) and purchase order financing accounts to U.S. SMEs with terms ranging from 30-120 days.
Fully Collateralized and Insured – Fully secured by accounts receivables and inventory with factoring accounts 100% insured and supply chain (inventory) & purchase order accounts 90% insured.^
Senior Secured – Security interests are primarily 1st lien against eligible receivables, inventory and/or purchase orders.
Established National Infrastructure – Partnered with multiple originators that have focuses on specific regions across the U.S.
The Fund seeks to achieve attractive risk-adjusted returns with the downside protection associated with investing in trade finance and other asset-based and receivable-based secured private credit opportunities in a manner that is decoupled from public markets volatility.
There are around 29 million small and medium-sized enterprise (SME) in the U.S. In response to regulations requiring increased capital requirements, banks have pulled back from the trade finance market, leaving the SME market underserved.
For SMEs, investment firms that participate in trade finance, like Highmore Group Advisors, can be better providers of funding than banks because they are:
Trade Finance can provide both an efficient and valuable source of working capital to the growing SME market.
Short terms on trade and receivables financing, typically ranging from 30-120 days, provides investors with a way to access to private debt without the long lock-up periods found in some private debt products with longer underlying loans.
* Insurance is provided on individual factoring accounts and supply chain purchases. Insurance providers include Allied World, Euler Hermes and Tokio Marine. Credit protection on 90% of capital outlay and accrued fees (interest) on supplier chain finance. Credit protection on 100% of principal on factoring accounts as insurance companies insure 90% of invoices and therefore up to 90% of the face value of invoices are funded.
Private debt is a loan-by-loan business. Ninepoint supplements fund-level oversight with an in-house Due Diligence & Oversight Team that has over 15 years of experience in corporate lending and loan origination.
Supporting our Oversight Team is BlackRock’s Aladdin platform, which provides additional risk management tools for the Oversight Team.
|Series A *||NPP908|
|Series F *||NPP910|
|Series PF *||NPP913|
|Series PF1 *||NPP936|
*Closed to new subscriptions
|Fund Type||Open-ended unincorporated investment trust|
|Inception Date||May 31, 2019|
|Registered Tax Plan Status||Eligible|
|Management Fee||Series F: 0.10%
All Classes are charged a 1.55% advisory fee at Master Fund Level
|Performance Fee††||20% over 7% Preferred†††|
|Minimum Initial Investment||$10,000 accredited
|Minimum Subsequent Investment||$5,000|
|Minimum Investment Term||None|
|Redemptions||Monthly, with 90 days notice†|
* $150,000 for non-individual.
† If during any redemption period, the Manager has received from one or more Unitholders an acceptable Redemption Notice to redeem in aggregate 3% or more of the outstanding Units, the Manager may, in its discretion, choose to meet such redemptions on a pro rata basis effective as of such quarter-end and to meet such excess redemptions on a pro rata basis effective as of subsequent quarter-ends, subject to the application of the 3% limitation for each such subsequent quarter-end.
†† The Fund may invest up to 25% of the total assets in any one issuer at any time prior to the one-year anniversary for the initial closing of the Fund.
†††Fund returns between 7% and 8.75% are payable to the General Partner as a Performance Allocation plus applicable taxes. In addition. 20% of returns in excess of 8.75% are payable to the General Partner as a Performance Allocation.
^Insurance is provided on individual factoring accounts and supply chain purchases. Credit protection on 90% of capital outlay and accrued fees (interest) on supplier chain finance. Credit protection on 100% of principal on factoring accounts as insurance companies insure 90% of invoices and therefore up to 90% of the face value of invoices are funded.