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ABOUT BARAK

Experienced origination and fundamentally driven credit approach.

EXECUTIVE SUMMARY

Barak Fund Management Limited (“Barak”) uses a time-tested approach to originate, acquire and manage structured commodity-backed transactions across more than 30 African countries.

Focused Proven Strategy

  • Barak seeks to generate equity-like returns in a capital-constrained market with relatively low volatility and limited correlation to the broader markets
  • The company strategy focuses on fully-funded or blended debt in the African commodity markets, using asset-backed loans with various forms of collateral

Seasoned Management

  • Fund managers average 14 years of experience in commodity derivative and physical commodity trading and international banking in Africa.
  • The senior management team is a hand-picked group of specialists with significant expertise in agricultural commodities, structured trade finance, logistics and loan management.

Robust Process

  • Disciplined, repeatable investment process focuses on strict controls, senior liens with strong covenants and shorter duration investments
  • Experienced origination and conservative credit approval terms provide control over portfolio composition and asset management, enhancing fund performance

Risk Management Culture

  • Risk considerations are deeply embedded in every aspect of the investment process, from origination to underwriting and exit.
  • Barak focuses on worse case scenario analyses prior to pursuing any investment opportunity.

Alignment of Interests

  • Partners are Barak’s majority shareholders and have tied employee compensation to long-term Fund performance.
  • Barak maintains a strong firm-wide commitment to best-in-class operations, compliance, and client service.

FUND AWARDS

Barak STF

Barak’s Competitive Advantages

Broad Investment Scope

Flexible operating environment allowing for innovative deal structures which enhance investor return.

Basel III, Dodd-Frank and Volker rules provide Barak with the opportunity to invest across a wider investment universe.

SPECIALIZED COMMODITY TRADING SKILLS

Most bank specialist trade finance areas lack physical trading skills, thus limiting the deals they can execute.

By integrating its commodity financing skills with risk management skills, Barak evaluates the whole supply chain and seeks to achieve enhanced returns for normal credit-based risks.

ON-THE-GROUND CREDENTIALS AND ACCESS

Managers have been based in Africa for years, and have gained extensive local expertise and networks across the continent.

Affiliation with large Africa focussed trading houses, which own and rent storage capacity in Southern Africa, East Africa and West Africa, giving Barak strategic access to more than 30 African countries.

We believe that Barak is currently the only Fund that has strategic access to 481 warehouses in eastern, southern and western Africa in which to store commodities.

BROAD TRANSACTION-SOURCING NETWORK

Established market presence and relationships with the most prominent traders, financial brokers, commercial and investment banks on the African continent.

Access to an extensive pipeline from which to select the most lucrative transactions Fund’s approach facilitates the building of a diversified, high quality investment portfolio.

Investment Philosophy

Controlled, Disciplined Approach

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  • Barak favors companies in established markets and commodities that are conducive to lending and credit analysis
  • These companies are typically stable, predictable and have low default rates due to high commodity turnover and ability to liquidate stock

Invest Alongside Established Market Participants

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  • Barak seeks to partner with well-known international banks to provide senior debt/co-financing on selected transactions
  • By investing alongside these participants, the Fund benefits from their deal sourcing capabilities, investment judgment, controlling ownership position, and operational and financial expertise

Exert Influence Over Financing

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  • By acting as a lead or co-lead in the financing of the majority of its transactions, Barak seeks to gain significant influence over the structure and terms of financing
  • Barak seeks to obtain enforceable priority security interest in the collateral

Portfolio Diversification

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  • Barak believes that a diverse portfolio mitigates economic, sector and country risk
  • Commodity allocation and country allocation play a dual role in providing investors with a diversification benefit

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