Emerging Markets Direct Lending

Direct loans to under-served markets can produce higher returns while creating jobs.

Increasing Economic Openness Makes Emerging Markets Attractive

Small businesses create roughly half of all jobs, yet they face barriers to getting bank loans. The World Bank estimated that 70% of micro, small, and medium-sized enterprises in the emerging markets are unable to access credit. The emerging markets offer even more 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.

While unpredictable protectionist measures rattled US markets during 2019, Africa has been moving toward free trade. The African Continental Free Trade Area (AfCFTA) eliminates tariffs on 90% of goods traded between member states. Currently, only about 20% of African trade occurs within the continent compared to 69% for Europe. The UN Economic Commission on Africa predicts that the agreement will increase trade by more than 50%.

Africa accounted for more than 30% of all business regulation reforms in developing markets during 2018 according to IFC. It is now easier to do business in Kenya than in East Asia and the Pacific. The World Bank also ranks Rwanda above Switzerland and the Netherlands for ease of doing business.

Investment Strategy

The fund seeks to provide secured loans to support the growth and financing needs of small and medium enterprises (“SMEs”) throughout their lifecycle.

Our mission is to generate strong risk-adjusted returns by financing sustainable businesses run by exceptional management teams. We have a four pillar investment strategy focused on disciplined underwriting, better structuring, intensive loan monitoring and risk mitigation.

Ashton Global LLC Investment Management
Short-term

2-3 year loan average life

Ashton Global Emerging Manager
Asset-based

Highly negotiated, well-structured legal documents

Ashton Global
Self-liquidating

Loan is used to generate proceeds that are in turn used to repay the loan

Ashton Global Small Cap Emerging Manager
Floating rate

Floating rate (LIBOR- based) interest

Term Loans

Our investment team specializes in customized financing solutions designed to achieve our borrowers’ objectives

 

Borrowers with 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 Small Cap Emerging Manager

Trade Finance

We provide a variety of trade finance solutions to producers, distributors and trading companies within the commodities and global supply chain

 

Target 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 Thinley Wangchuk

Equipment Leasing

Our investment team specializes in providing working capital solutions for healthcare providers

 

Financing is 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

Ashton Global Small Cap Emerging Manager
Ashton Global Investment Management
Ashton Global Direct Lending Presentation
Ashton Global LLC Asia Small Cap Fund
Ashton Global
Ashton Global Litigation Finance

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 info@ashtonglobal.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. Investing in emerging and frontier markets can involve risks such as having less publicly available information, higher volatility, and less liquidity than in the case of developed markets. Overweighting investments in certain sectors or industries increases the risk of loss due to general declines in the prices of stocks in those sectors or industries.