Careful examination of Cordiant’s performance data and track record has allowed us to identify our strengths and develop our private debt strategies accordingly. Our success has not been related to the commodity boom but, rather, lies in supporting the rapid urbanization and expansion of the middle class in developing economies: transportation infrastructure, clean energy, technology and telecoms, and the professionalization of agriculture. Our borrowers are quality corporations with top-notch projects supported by solid balance sheets and favourable market dynamics.
Senior secured corporate and project finance loans alongside IFIs (B loans) remain an important part of Cordiant’s product line. Since 2001, we have managed six capital pools of this type, including the ICF Debt Pool, each of which has provided investors with stable streams of income, enhanced credit protection and attractive risk-adjusted returns while generating far-reaching ESG benefits.
Senior Secured Corporate Direct Lending
Cordiant’s direct corporate lending strategy is a direct outgrowth of our extensive B loan expertise. At any given point, anywhere between 25-50% of Cordiant’s investment pipeline consists of stellar companies with which we have done business in the past. Many of these companies no longer wish or require the presence of an IFI but they, and many others sourced through our origination network, seek to borrow directly from Cordiant not only because we can provide capital, but also because of our ability to partner innovatively to help craft the right kind of capital structure for growth. This solid legacy creates a strong pipeline of direct lending and shorter or medium tenor opportunities to well-rated corporate borrowers.
Agricultural Trade Finance
Cordiant began investing in agricultural trade finance in 2007 as a growing sub-strategy within our broader private debt investment funds. In 2012, we began working directly with large agri-food companies to source trade finance opportunities directly. Bolstered by our positive past experience, but constrained by a narrow allocation in our general debt funds, we decided to expand our agricultural trade finance business into a dedicated strategy.
Securitization of Corporate Loan Portfolios
Cordiant’s demonstrated credit analysis skills and investment fund management capabilities, together with our on-going relationships with the largest banks in the world, make Cordiant well positioned to provide banks with needed capital / CVA relief in relation to emerging market exposures. Under either scenario, Cordiant can leverage its well-honed analytical proficiency and risk management skills to raise funds, secure the portfolio and manage it on behalf of one or a small number of sophisticated institutional investors.
Cordiant is co-manager of a private equity fund that seeks to provide risk capital for private investments in Africa in order to generate economic growth, attract investors and build momentum for increased trade and investment throughout the continent.