Legal structures

Legal structures including transferability

Institutional investors have a different perspective and business requirements vis-à-vis banks and fintechs, while investing in any asset categories. Given the fact that institutional investors usually have small mid-office and operations teams, unlike banks, their preference is for a simple investment structure with minimal operational processes.

The moot question that needs to be addressed for institutional investors is – ‘What are possible legal structures for investing in trade finance assets?’

Pinnacle Trade Finance can help customise a number of legal structures available in trade finance secondary market for the institutional investors. These legal structures can be modified not only for procurement of trade assets, but also have an option for the institutional investors to further sell-down these trade finance assets to other investors in the secondary market (i.e. structured for sale).

We can also recommend possible ways to outsource the entire end-to-end operational process (including all the heavy lifting) to banks and/or technology platforms, so that institutional investors can focus on yield and credit decisions.