EFA Group, an independent asset manager specializing in credit strategies, has launched a new investment fund that will provide receivables and supply chain financing to small and medium-sized businesses (SMEs).
Focusing on companies in Asia, the EFA Supply Chain Finance Fund (the “Fund”) will provide the vital working capital that these companies need to grow but which is difficult to access in their local markets. A 2016 Asian Development Bank study showed that the trade finance gap in developing Asia to be almost US$ 700 billion. The Fund aims to fill in this gap by providing financing and freeing up cash flow of the SMEs.
Loans range from 30 to 180 days and financing will focus on a diverse pool of SMEs ranging from IT and media services, to pharmaceuticals and electronics. The Fund expects to deploy a financing turnover of US$300 million in 2018.
“While EFA’s other investment vehicles have traditionally targeted corporates in the commodity industry, the EFA Supply Chain Finance Fund will mark the Group’s expansion of its direct lending solutions to a wider range of industries. With our headquarters in Singapore, we have over a decade of experience originating, structuring and managing direct lending transactions in Asia, so it makes perfect sense to focus our portfolio in this region,” said the Fund’s Portfolio Manager, Etienne Van den Bogaert.
EFA currently provides over US$2 billion of loans to 150 mid-market companies annually through its existing funds which provide trade finance and asset-based finance loans.
“The launch of this Fund reinforces EFA’s standing as a leading alternative credit specialist. We are expanding beyond commodity trade finance but at the same time, staying true to our mission, which is to bridge the gap between companies that need capital and investors who can supply it. The result is a win-win for everyone,” added Francois Dotta, the Group’s CEO.
About EFA Group
EFA Group is a global independent asset manager specializing in alternative credit strategies. Established in 2003, it provides financing solutions to businesses across various sectors in Asia, Middle East, Europe and Africa. EFA is regulated by the Monetary Authority of Singapore and has over 60 personnel across offices in Singapore, Geneva, Dubaiand London.