Providing customized and efficient capital to support small and middle market businesses
The emerging markets offer favorable conditions for the growth of direct lending. Direct lending is not only profitable for investors, it also supports communities by providing more affordable credit to job-creating small businesses. Non-bank lending plays a substantial and growing role in emerging economies.
According to the Bank for International Settlements, debt to non-bank lenders accounts for 23% of private non-financial sector debt. Furthermore, private debt in the emerging markets grew an average of 4.5% per year during the past decade. The World Bank estimated that 70% of micro, small, and medium-sized enterprises in the emerging markets are unable to access credit. Direct loans to under-served markets can produce higher returns while helping to create jobs.
Local Markets Expertise
Local Markets experience in corporate lending and project finance
Ashton Global Direct Lending was created to provide secured loans to support the growth and financing needs of small and medium enterprises (“SMEs”) throughout their lifecycle.
Disciplined underwriting, better structuring, and intensive loan monitoring enables us to create value for our investors.
Ashton Global provides businesses with secured term loans for growth
Our investment team specializes in customized financing solutions designed to achieve our borrowers’ objectives.
Our borrowers typically have EBITDA between $5 million and $25 million, competitive positions within their respective markets and excellent management teams.
We work with companies across various industries to structure effective solutions to provide medium-term capital, while mitigating risks to stakeholders.
Ashton Global provides businesses with reliable working capital
We provide a variety of trade finance solutions to producers, distributors and trading companies within the commodities and global supply chain.
Loans are short- to medium-term USD-denominated transactions that are self-liquidating and supported by the physical goods and/or receivables being financed.
Our financings are in the $3 million to $5 million range, typically less than one year in length, and underwritten based on the underlying fundamentals of the transaction.
Ashton Global provides businesses with leasing solutions for growth
Our investment team specializes in providing working capital solutions for healthcare providers.
Financing to borrowers can be used for fixed asset purchases to expand service offerings and revenue opportunities for healthcare operators.
We work with medical office buildings, hospitals, surgery centers, dialysis, and senior care facilities.
Our facilities range from $500,000 to $1 million and borrowers can choose from loan or lease options.
what are the KEY risks?
Companies are smaller and typically “non-bankable”
Borrowers more susceptible to event and regulatory risks
Borrowers have smaller revenue and assets bases,
Borrowers typically have fewer sources of available liquidity
what are the KEY risks?
No active trading in the loans Loans are held to maturity
No mark-to-market valuation
Returns are generated from origination fees and interest received as the loan repays over time
how we mitigate PORTFOLIO AND EVENT riskS
Credit risk is our most significant risk. We secure our loans against collateral that can be easily liquidated. Wherever possible, we also obtain a lien on the company’s land and buildings and other tangible and liquid assets.
Performance risk is mitigated via thorough analysis of the past financial performance of potential borrowers. We will only lend to potential borrowers that demonstrate a financially viable enterprise. Loan monitoring is ongoing and vigilant through frequent contact with borrowers, monitoring of bank accounts and local news sources, and by stress testing revenues and costs to project debt repayment capacity.
Risk of fraud is mitigated through our critical due diligence on potential borrowers and transactions. All leads are generated from internal sources and we do not pay any broker fees to find new transactions.
Concentration risk is mitigated through diversification across borrowers, country, and sectors.
Liquidity risk will be mitigated by matching the source of funds to the facilities provided to the borrowers. This ensures a close matching of assets and liabilities. Excess funds will be invested in highly liquid money-market instruments.
Political/Expropriation risks are mitigated by our country selection criteria and emphasis on a strong rule of law in the regions in which we operate. Political risks are actively monitored and risk insurance is acquired as needed.
Private Education in Africa
Term loan and revolving credit facility to private school operating in Kenya (Libor + 9.50%)
Financing will provide working capital to help the school construct new buildings and expand enrollment
Financing will be secured by tuition fees directly paid to a US-based bank account, and fixed assets
Excess cash flow will help the school expand into new locations and online classes
Macadamia Nut Producer in Kenya
Revolving credit and factoring facility to macadamia nut producer (Libor + 8.50%)
Financing to provide working capital to enable purchases of more raw materials which increased sales
Financing will be secured by accounts receivables with US wholesalers paid directly to a US-based bank account, fixed assets and inventory
Collateral manager to provide weekly verifications of inventory values
Why Ashton Global?
Ability to address complex situations within short time frames and close transactions quickly
Experience in emerging markets and with SMEs
Broad experience across industry sectors and financing structures
Fully transparent investment process
Kijana A. Mack, Portfolio Manager
Emerging Markets Direct Lending
We provide customized and efficient capital to support small and middle market businesses.
An investor should consider the fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about the fund can be found in the fund’s prospectus, or, if applicable, the summary prospectus. Any decision to invest in Ashton Global funds should be made on the basis of the current prospectus, which is available on request at email@example.com. Read the prospectus carefully before investing. All investing involves risk, including potential loss of principal. There is no guarantee that the fund will achieve its objective.