Pipeline Project

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Disclaimer

Barak Fund Management will not be liable for any special, indirect, incidental, consequential or punitive damages or any damages whatsoever, whether in an action of contract, statute, delict (including, without limitation, negligence) or otherwise that relate to the use of this website. All information contained in this website pertaining to products and services and their terms and conditions, is subject to change without notice.

Although care has been taken as to what is contained in this website, no attempt has been made to give definitive or exhaustive statements of law or any opinions on specific legal issues and no representation is made or warranty given that the information is complete or accurate. This website does not constitute or offer legal or other advice and you should not rely on it as such advice.

Past performance is no guarantee of future returns and the fact sheets provided are for illustrative purposes only. The value of investments and income that are dependent on the performance of underlying assets or other variable market factors may vary from time to time. Investors must take cognisance of the fact that all the information provided are of historic nature.

Use of the website is entirely at the users own risk. Anyone requiring advice on any of the matters referred to herein should consult lawyers or other professionals familiar with the appropriate jurisdiction and legislation.

This Site contains information from Barak Fund Management and about the investment Funds it advisers. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy. The distribution of information contained on this Site and the sale of shares in the Funds may be subject to legal or regulatory restrictions in certain countries in which users are resident or of which they are citizens.

This Site and its contents are being made available for the convenience of the present Investors of the Funds and such other persons expressly authorized by Barak Fund Management (“Authorized Persons”) for information purposes only, provided such Investors and Authorized Persons are not prohibited by any applicable law of any jurisdiction from receiving such information. Persons accessing this Site are therefore required to inform themselves about and observe such restrictions.

Barak Fund is an authorised financial services provider.

Disclaimer

Barak Fund Management will not be liable for any special, indirect, incidental, consequential or punitive damages or any damages whatsoever, whether in an action of contract, statute, delict (including, without limitation, negligence) or otherwise that relate to the use of this website. All information contained in this website pertaining to products and services and their terms and conditions, is subject to change without notice.

Although care has been taken as to what is contained in this website, no attempt has been made to give definitive or exhaustive statements of law or any opinions on specific legal issues and no representation is made or warranty given that the information is complete or accurate. This website does not constitute or offer legal or other advice and you should not rely on it as such advice.

Past performance is no guarantee of future returns and the fact sheets provided are for illustrative purposes only. The value of investments and income that are dependent on the performance of underlying assets or other variable market factors may vary from time to time. Investors must take cognisance of the fact that all the information provided are of historic nature.

Use of the website is entirely at the users own risk. Anyone requiring advice on any of the matters referred to herein should consult lawyers or other professionals familiar with the appropriate jurisdiction and legislation.

This Site contains information from Barak Fund Management and about the investment Funds it advisers. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy. The distribution of information contained on this Site and the sale of shares in the Funds may be subject to legal or regulatory restrictions in certain countries in which users are resident or of which they are citizens.

This Site and its contents are being made available for the convenience of the present Investors of the Funds and such other persons expressly authorized by Barak Fund Management (“Authorized Persons”) for information purposes only, provided such Investors and Authorized Persons are not prohibited by any applicable law of any jurisdiction from receiving such information. Persons accessing this Site are therefore required to inform themselves about and observe such restrictions.

Barak Fund is an authorised financial services provider.

Data Room

To access detailed information regarding our funds simply provide your details below, specify your interests and our team will contact you.

01

Processes

Barak Flow from Fund Investment to Return

Barak Fund Management follows a stringent Fund process flow from Investor’s initial capital investment to the calculation of monthly Fund returns. This process includes front-office investor marketing and deal origination, middle-office deal monitoring and cash management, and back-office Fund Administration and NAV calculations.

Opportunity spotted to fill this growing trade finance funding gap

reluctant banks in africa

After the 2007/08 Liquidity Crisis, SME companies in Emerging Markets worldwide, particularly Africa, experienced critical limitations in liquidity funding for core business activities, often in their trading operations. Banks and traditional funders were primarily responsible for this liquidity squeeze.

Focus on the critical SME funding requirements

establish barak in africa

Coming from banking backgrounds, both Barak co-Founders noted the opportunity to set up an African-focused Trade Finance Fund to provide liquidity for this ever-widening trade finance gap. Leveraging existing client relationships, Barak as an alternative financier was set up and a track record established.

Actively promote Barak’s activities to interested parties

barak strategy in africa

Barak has historically focused on short-term trade finance funding to agricultural and food-related SMEs in sub-Saharan Africa, but since mid-2016 has also moved to the medium and longer-term universes of financing across all the continent’s regions. The strategy is centred on being the leading alternative financier across all financing requirements (trade finance, working capital, asset-backed leasing, project finance), as well as offer different investment tenors for a growing global investor base.

Payment is made from investor in Barak Mauritius Subscription Account

Investor due diligence

Once a prospective investor into Barak has appetite to place a subscription, the IR Team at Barak will conduct an internal due diligence on the investor to ensure that all discussion points have been addressed and all background to both Barak and the investor has been covered. Upon commitment, the investor deals directly with the Fund Administrator Maitland to ensure all investor DD and KYC documentation is adequately received.

Barak Fund now has capital to be able to loan to creditworthy counterparties

investor invests into fund

Once approval is received from Maitland that the new investor is on-boarded, the investor transfers the approved subscription funds to Barak Bank Account based in Mauritius. Process is administered by the Barak Compliance Officer, and once funds are received investor will receive a Fund Contract Note with the NAV dealing date amount. Investments are received on the 1st of each month.

Interest from Barak is shown and request for more information undertaken

client / borrower enquires for funding

Potential clients requesting funding for their financing activities from Barak make contact via numerous avenues, primarily via the Barak website, word of mouth, global trade conferences or through banks. Initial contact from a prospective client usually entails a high-level overview of their company, and the trade details around their request for funding.

If positive borrower response, Barak Originator discusses the deal internally

best suited deal originator responds

Each Deal Originator at Barak, although not limited to, has respective geographic and commodity sector focus and experience that they have gathered during their time at the company, as well as in prior career positions. Depending on the prospective client enquiry that is received, a Deal Originator will be assigned to assess the request for financing and will ask the client for further information if there is a possible opportunity.

Credit Application is finalised with all required borrower information and forecasted financials

originator builds case

If there is a tangible opportunity that the assigned Deal Originator believes may fit Barak Fund’s financing mandate, the background work on the client and the transaction will be started and all possible macro and micro information will be gathered. Ultimately the Deal Originator is working towards building a watertight Credit Paper which will be pitched at Barak’s weekly Credit Committees. This includes a mandatory on-sight visit to the prospective client to view operations, meet management and gather references.

Barak Credit Committee of six members reviews the credit application

Barak Fund Management cfo hosts credit committee

Barak has its Credit Committees once a week on a Thursday, with all Credit Papers for that week needing to be submitted a minimum 72 hours in advance. Given that Barak’s Compliance Team is located at Head Office in Mauritius, all Credit Committees are hosted by the Barak CFO whom is based there. The Barak Credit Committee is made up of 4 internal members as well as 2 external.

Once approved, all Legals and Conditions Precedent are addressed

transaction approved / not approved

The Barak Deal Originator pitches the compiled Credit Paper to the Credit Committee, addressing all qualitative and quantitative aspects of the deal, business and relevant external factors. The focus is on current and forecasted financial prosperity of the business, and its ability to make good on repayments back to the Fund. Another important element is the security behind each transaction. There will be voting at the end of the pitch, and if a majority is received the deal will be approved. Subsequent CPs may be enforced.

Payment facility committed to borrower uploaded internally

administration documentation and receipt

Once a transaction has been approved and a term sheet delivered to the client, the Fund Administration Team ensures that all documentation pertaining to the deal is uploaded and a client file is created. All Legal Precedents pertaining to the transaction need to be included in the administration documentation and a loan drawdown schedule created so that the Fund is aware of the ongoing loan structure.

Payment is made from Barak Mauritius bank account to borrower’s bank account

mauritius bank accounts

The Administration Team loads the payment to the client onto the Standard Bank Mauritius platform, with the preparation of a payment pack provided to management outlining amount, purpose of payment and client bank details. This payment pack is verified and authorised in Mauritius, with all details being kept within the client file. Remittance is then prepared for the client, with all funds flowing in USD currency.

Continuous monitoring of tranches is done on a daily basis

CLIENTS TRANSACTS WITH FUND

Once payment is received by the client for the purposes stipulated in the payment pack, the specific payment date is live and the transactions is uploaded to the monthly internal Barak Open Trade Detail Report. This Report provides detail on nominal and outstanding value, interest payment, loan tenor, and country & commodity sector exposures.

Transactions runs its course as per terms of deal agreement

DEAL ADMINISTRATION PAYMENT MONITORING

The Operational Deal Administration, utilising the internal Barak Deal System Platform, actively monitors each tranche of payment to a client. A client may have approval for a $10mn transaction with 10 shipments, thus each $1mn tranche receives its own pay-out and thus individual tranche is monitored, not merely the transaction as a whole. It is in this light that the Fund is able to understand each and every leg of a trade finance transaction and can drill down into detail should any issues be experienced.

Barak Fund earns a return based on interest and fees payable by the borrower on loan

CLIENT OR OFF-TAKER REFUNDS FUND

Clients will make repayments to the Fund depending on how the transaction is structured. This may encompass regular interest repayments on loans, or principal + interest payments over the life of the loan period. Again dependent on the structure of Agreements, direct off-takers to the transaction may repay Barak directly, on not have to go through the borrower. This refunding of the loan is how the Fund generates its income to Barak.

Investor’s principal investment amount achieves growth aligned to Fund returns

FUND PAYS CAPITAL GROWTH TO INVESTOR

The Fund pays capital growth to the investor from interest and fees billed to clients. The investor sees month on month growth on investment due to income accumulation. There are no dividends distributed.

INVESTOR RECEIVES MONTHLY NAV STATEMENT

Fund Administrator, Maitland, distribute Investor Statements on a monthly basis showing the new accumulated Fund NAV amount.