AI Hedge Awards 2017

20 Acquisition International - Hedge Fund Awards 2017 Best Independent Asset Manager 2017 - Latin America & Award for Excellence in Corporate Finance Advisory - Latin America BAF Capital AG BAF Capital AG is a Swiss based financial services company and Independent Alternative Investment Manager, with a specific focus in the Latin American region. Ernesto Lienhard (BAF Capital´s CIO) talks us through the firm and the vast array of services it provides. Company: BAF Capital AG Phone: +41 61 588-0223 Email: [email protected] Web: www.bafcapital.net Pantone 7539 C Pantone 294 C HF170044 Since its inception in 1996, BAF Capital has been providing working capital solutions to the corporate sector in Latin America. Drawing on the vast experience of a team of over 90 people among its five offices in Switzerland, Argentina, Uruguay, Brazil and Paraguay, the firm currently manages two funds. These are the BAF Latam Trade Finance Fund and the BAF Latam Credit Fund, which have a total AUM of over USD 1 billion. Ernesto defines the firm’s client base and outlines how BAF Capital works to ensure that they receive the very best solutions and support. “Our typical clients tend to be mainly in the agricultural sector. These include dairy producers, sugar mills, soybean oil crushing companies, grain exporters, juice producers and beef exporters. We have expanded our business during the last couple of years to include as well companies operating in the energy and oil and gas sectors. Most of the companies we deal with are privately owned and have been in the market for a very long time. They count with important investments in fixed assets, state of the art facilities and an excellent track record as exporters. “Most of our clients have gone through many political and economic crises and have managed to overcome these difficulties. As such we aim to provide them with stability and support throughout the investment process and ensure that they receive the most risk adverse returns possible. Since inception BAF has developed a proprietary methodology in evaluating credit risk and structuring collateralized loans. Our Credit Risk Committee analyses each borrower at least twice a year. The Deal Sourcing team, on the other hand, is not only in permanent contact with them, but also with other lenders, suppliers and other companies operating in the same industry in order to be abreast when taking decisions. Risk is mitigated by diversifying our portfolio in terms of countries, products and clients, each of them with our own self-imposed limits. “Fundamentally, all of our borrowers count with different sources of financing; including both domestic and international financial institutions. We have always been an alternative source of finance to our customers. Having being in the market for such a long time, and even during very difficult periods, have shown to them that we are a reliable source of liquidity. Our history has proved this is something that companies consider to be extremely important, especially in the emerging markets.” Looking to the future, the firm has a number of exciting opportunities ahead of it. As Ernesto concludes, the firm is now exploring new options as its current funds reach the end of their trading potential; however, BAF Capital’s focus will remain squarely on ensuring that clients receive the best possible service and returns. “Our Trade Finance Fund which has enjoyed eight years of positive returns for its investors, who include European Pension Funds, Insurance Companies, US Asset Managers, and Family Offices, has now reached its maximum capacity, and as such our marketing efforts are devoted to grow our Credit Fund. The limited availability for financing in the region combined with a lack of modern infrastructure in most of the countries where we operate offers a great window of opportunities in the near future, therefore we are looking forward to taking advantage of this opening. “The Latin American region most important sector is based around agriculture, with many countries producing considerable amounts of food that is exported to the rest of the world. However, with a lack of modern infrastructure in many countries, as well as difficulties in raising the necessary finances to boost exports, many companies have struggled to translate their potential into international trade. “Overall, despite a history of turbulent economies and political unrest many global observers believe that the region offers huge opportunities to investors in the near future, something we quite agree with, and as such we will continue to build upon our local knowledge and experience in the future.” “Overall, despite a history of turbulent economies and political unrest many global observers believe that the region offers huge opportunities to investors in the near future .”