The team believes the reduction of lending by banks, for regulatory reasons, has made trade finance significantly harder for SMEs to access and this has increased demand for independent, alternative sources of finance, while the risk profile at the underlying transaction level remains unchanged. The team seeks to exploit this structural opportunity through self-originated lending using a variety of financing structures.
The process focuses on rigorous due diligence of borrowers and efficient execution and monitoring of structured, asset-backed loans. A longstanding reputation and network of over 500 relationships globally, enables the team to source potential deals. They focus on borrowers in first world countries, while transactions are usually secured against underlying commodities skewed toward Asia, Africa and South America. In-depth credit and commercial due diligence helps the team determine the soundness of the borrower and deal price. Following unanimous IC approval for the deal to proceed, a structured, a consistent legal process ensures efficient loan execution. The team actively manages and monitors the portfolio, with the deal pipeline playing a key role. Treasury funds with daily liquidity can be used to balance incoming investment with outgoing loans.
Kimura Capital LLP is a leading commodity trade finance firm, based in London. Kimura is responsible for investment management, risk oversight and operational control for the fund. All investment decisions require unanimous approval by the Investment Committee (IC), comprising Kristofer Tremaine, Founder and CIO, Neil West, Chairman, and Alan Gordon, Head of Trade Finance.
Founded in 2015, Kimura manages commodity trade finance, structured trade finance and alternative lending strategies, focusing on the energy, metals + mining, soft commodities and agriculture sectors. The management team has counterparty relationships with more than 500 companies at a commercial trader and management level, enabling strong in-house deal origination ability.
Kimura’s strategic partnership with GAM enables access to a wide range of distribution and marketing functions.
We differentiate ourselves through our ability to self-originate transactions, control the loan structure and maintain a strong repeat borrower pipeline, as well as by our experience as commodity traders and lenders and our relationships with global commodity trade finance third parties – these ensure that we can source the best deals possible, and provide attractive, risk-adjusted returns to investors.”Kristofer Tremaine Founder and CIO of Kimura Capital
All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.
The issuer of asset-backed securities may not receive in full the amounts owed to them by underlying borrowers, affecting the performance of the Fund.
Investment in deposits with financial institutions may be subject to default by the issuer. Some of the amounts deposited may not be returned to the Fund.
A rise or fall in interest rates causes fluctuations in the value of fixed income securities, which may result in a decline or an increase in the value of such investments.
Emerging markets will generally be subject to greater political, market, counterparty and operational risks.
Concentration in a limited number of securities and industry sectors may result in more volatility than investing in broadly diversified funds.
Investments in other funds have direct and indirect dependence on other service providers. The Fund may suffer disruption or loss in the event of their failure.