Ninepoint Partners seeks $500m for trade finance fund

The vehicle will be advised by Highmore Group Advisors, which will help originate and underwrite deals.

Ninepoint Partners has launched an asset-based financing vehicle that will invest in companies seeking capital for supply-chain, purchase order and factoring strategies.

The Toronto-based firm announced that it is seeking $500 million for Ninepoint Trade Finance Fund, which doesn’t have a set hard-cap, Ramesh Kashyap, a managing director and the group head of the firm’s alternative income group, told Private Debt Investor.

The fund is looking to deploy loans of $1 million with a 72-day term on average, he said, adding that the vehicle is flexible on loan maturities but doesn’t perceive doing deals that will last longer than 12 months. The vehicle will mainly invest in US-based companies but also in some Canadian businesses. It will lend to small to mid-sized companies, that don’t have the track record, size or scale to secure bank financing.

“Most companies Ninepoint’s sub-advisors work with don’t fit the traditional bank box,” Kashyap said. “The fund’s portfolio will consist of transactions to variety of small and medium size companies looking for bridge financing to support their growth plans.”

The vehicle will be advised by Highmore Group Advisors, a New York-based asset management firm, which will help originate and underwrite transactions for the fund. The firm expects to tap its investor base of high-net-worth individuals, ultra-high-net-worth individuals, family offices and institutional investors, according to a press release.

“The Ninepoint Trade Finance Fund is a good complement to our existing and planned private debt strategies” Kashyap said.

Ninepoint Partners is an independent asset manager with more than $2.5 billion in assets under management. It also operates multiple other asset-based lending, senior debt and equity strategies.