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INVESTOR INTRODUCTION

Africa’s Growth in Context

Investor Introduction

Barak is the only Fund Manager with an advisory team based in South Africa, Kenya, Ivory Coast and Ghana, with a Mauritian Head Office to back up the Finance and Compliance aspects of the company. The Barak Funds themselves are regulated by the Cayman Islands Monetary Authority, and the Fund Manager is regulated by the Financial Services Commission of Mauritius. The Head Advisory company in Johannesburg, South Africa, is regulated by the Financial Services Board of South Africa. Furthermore, with the opening of the representative Barak UK Office in London in 2016, there is a regulator for the UK region as well as a Swiss Legal Representative Office in Zurich to monitor marketing and distribution for the region.

Barak firmly believes in a hands-on and personal approach for all its existing and prospective clients within the Barak funds’ offerings. This includes the mandatory site visits by the Deal Origination Team during the investment evaluation process to gauge and ensure all necessary aspects for a functioning business operation are in place. Critically to this process is the background, reference and track record checks to ensure the borrower considerations that make up the Barak Funds’ portfolios are adequately risk-adjusted for performance.

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Barak is in the enviable position of being the only Manager with strategic access to on average 50 commodity storage warehouses across Africa, providing physical on-the-ground security for trades. In addition to this hands-on approach, Barak has over the years established strong partnerships with specialists in its countries of operation. Underlying commodities are monitored by 3rd Party Collateral Managers, using their experience and knowledge in respective jurisdictions in which Barak has activities. These relationships foster continuous operationally-efficient projects on an ongoing basis, especially critical for Barak’s longer-term vision into Africa.

Barak Fund Management monitors global markets closely, with a spotlight on Emerging Markets so as to implement a disciplined, repeatable investment process that is has based its success of off. The focus remains on strict controls both from an operations and investment basis, senior liens with strong covenants, and an Investment Committee that has built up seasoned knowledge of the African trade environment and where the risks and rewards lie. Although Barak remains focus on African investment, it is crucial for business survival and growth to continuously monitor the continent’s relationship with the global markets. Chinese demand for metals and minerals, for example, is a topical discussion that Barak keeps an eye on each trading day.

Barak Investor Focus

The Risk Management Culture, which is deeply embedded in every aspect of an investment, from origination to underwriting and exit, includes:

Barak has historically maintained a very strong relationship with a lot of Family Offices and HNWI out of Europe and the U.K., particularly Switzerland and its surrounding regions. Europe has always been aware of trade with Africa, and the rapport with these investors proved to be a natural progression for Barak. Following on from this were the Fund of Funds that added Barak to their portfolio as the non-correlated, consistent track record began to materialise.

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As Barak has continued to grow and surpass the US$700 million mark for Firm AUM, a lot more globally diverse institutional investor focus has arisen. Large Asset Managers out of the U.S. and Nordic region; Sovereign Wealth Funds out of the Middle East; Pension Funds in the U.K. and Central Europe; and large banks out of Asia have all played a strong part in this transition. With the launching of the medium and longer-dated Barak Funds, the team continues to attract meaningful interest from a host of Developmental Financial Institutions who have traditionally been involved in longer-term Emerging Market Credit Financing.

Risk Management Culture

The Risk Management Culture, which is deeply embedded in every aspect of an investment, from origination to underwriting and exit, includes:

Diversification

Diversification in all aspects of the investment process – from geographic and commodity diversification to client and trade diversification.

As at Q3 2017, Barak is working with 110 borrowers spread across the African continent and investing in a wide range of commodity sectors.

Focus

A focus on worst-case scenario analysis prior to pursuing any investment opportunity.

Investment Committees run by the Barak Head of Credit Risk, instilling banking-like processes in place to ensure all the potential risks are addressed.”

Credit Approval

A conservative credit approval system which provides control over portfolio composition and asset management, enhancing fund performance.to the success of any project.

The Barak Fund portfolio

Barak currently manages 6 funds, with cumulative assets under management (AUM) in excess of US$600 million

Barak short-term working capital fund focus (less than 12 months)
Barak Structured Trade Finance Fund

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Barak Impact Finance
Fund

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Barak Shariah Trade Finance Fund

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Barak Shanta Commodity Fund

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Barak Medium-Term Asset-Backed
Fund Focus (1-3 Years)
Barak Mikopo Development Credit Fund

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Barak Longer-Term Project-Financing
Fund Focus (7-10 Years)
Barak Asha African Impact Fund

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February 2009: Barak Structured Trade Finance Fund

March 2014: Barak Shanta Commodity Fund

July 2014: Barak Impact Finance Fund

May 2016: Barak Mikopo Development Fund and Barak Asha Impact Fund

November 2016: Barak Shariah Trade Finance Fund

Historical Performance

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