The Financely Fund primarily invests in trade finance and project finance, specializing in areas such as physical commodity trading, import/export transactions, and infrastructure project financing.

The minimum commitment required from institutional investors to participate in the Financely Fund is $100,000,000.

Investors can expect annual returns ranging between 8% and 12%. Most trade finance investments offer the opportunity for monthly profit payouts following the completion of each trade cycle, enhancing the liquidity and appeal of these investments.

In project finance transactions, if an offtake agreement is in place, profits are held in a debt service account to ensure secure and continuous returns. 

Even before the offtake agreement is established, the project company will pay a rate for utilizing our facility, safeguarding returns throughout the investment period.

Investor capital is safeguarded through carefully curated transactions and due diligence processes. Additionally, all of transactions utilize credit facilities rather than direct cash, with credit insurance on the SPVs to mitigate the risk of capital loss.

Investor capital is protected in two primary ways: by serving solely as collateral for credit facilities and through the securitization of underlying assets with stringent loan-to-value (LTV) requirements.

Example 1: Revolving Credit Facility for Commodity Trading

In a scenario where an investor's capital is used as collateral for a revolving credit facility in commodity trading, the investor benefits from the continuous flow of returns generated by multiple trading cycles. The capital itself is not directly expended but guarantees the credit line. 

The borrower pledges the commodities being traded as collateral under a securities agreement, ensuring that in the event of a default, these assets can be seized. 

This arrangement is backed by a minimum 120% LTV, meaning the value of the pledged commodities always exceeds the amount of the credit facility, significantly reducing the risk of capital loss.

Example 2: Standby Credit Facility for Infrastructure Projects

In project finance, particularly for infrastructure projects, an investor’s capital might back a standby credit facility. 

This ensures the project's continuity and financial stability without immediate utilization of the investor's funds. 

The project itself, including any physical structures and anticipated revenues, serves as collateral. 

Detailed covenants in the term sheet further protect the investor by enforcing strict operational benchmarks and financial health indicators. In case of borrower default, the rights to seize the project assets are predefined, with the minimum 120% LTV requirement ensuring that the collateral value always covers the outstanding credit, thus securing the investor's capital.

In both cases, the structured use of credit facilities backed by high-value collateral and robust contractual covenants minimizes financial exposure while providing a clear mechanism for asset recovery. This structured approach ensures that the fund can offer both security and profitability, aligning with the investors' need for reliable, low-risk returns.

The lock-up period for investments in the Financely Fund is 36 months.

Yes, investors have the option to fully commit to the fund or to finance specific transactions, depending on their individual or institutional investment mandates.

For trade finance investments, profits can be paid out monthly or after each trade cycle is completed. The specific payout schedule will depend on the nature of the transaction and the agreement terms.

Financely maintains a constant deal flow through a network of global contacts and a robust process of transaction curation. Our analysts conduct daily reviews and due diligence to ensure that only the most viable and secure transactions are presented to investors.

While the fund primarily focuses on global opportunities, particular attention is given to emerging markets where the trade finance and project finance gaps are most pronounced. Specific geographical focus may vary depending on the underlying transaction and strategic interest.

Exiting the fund typically aligns with the end of the lock-up period. However, specific exit procedures and any potential early exit options or penalties will be detailed in the individual investor agreements.

This term sheet format provides clear and concise information, facilitating better understanding and decision-making for potential investors. If you have more questions or need further details, please feel free to ask.