Synthesis has developed a wide range of experience across alternative asset sectors, focusing primarily on short-dated and/or heavily secured transactions with low volatility.
Synthesis’ main objective is to offer consistent, strong returns that are unaffected by volatility in stock and bond markets. We achieve this by establishing relationships with and lending directly to businesses.
Every transaction that we finance is individually checked and monitored by us, allowing us to maximise security and continually review our investments.
Synthesis-P2P was launched in November 2012, and was the first fund of its type to be established in the EU. The Fund was renamed in 2016 to the Market-Based Financing Fund to reflect our continuing evolution.
Structured trade finance is where we finance a transaction on behalf of a third party. We achieve this by directly purchasing the goods from their supplier and then selling the goods directly to their purchaser, instantly removing a substantial portion of the credit risk.
In a Master Risk Participation Agreement we provide all of the legal and transactional structure, simply requiring the the third party investor to select transactions to fund. This allows the investor to fund transactions based around their own liquidity needs.
Our Funds focus now is on Structured Commodity Trade Finance due to the fast capital deployment, lowest default rates relative to any other interest-based asset class, and global diversification thanks to our network of commodity trading companies.
Structured Trade Finance (‘STF’) has been in existence for almost thirty years. Unlike with "traditional" Trade Finance, where lending is dependent upon the credit quality of the borrower's balance sheet, in Structured Trade Finance, a self-liquidating arrangement is created, focusing on the underlying transaction itself.
STF means the financing of trade against robust collateral with focus on each transaction. We do not finance the production and marketing of commodities, but rather their physical delivery from supplier to buyer.
With STF, lenders no longer look to borrowers as direct sources of repayment, but rather to the underlying assets arising from the financing, namely the goods financed and the receivables arising therefrom.
Accordingly, Structured Trade Finance makes it possible to isolate certain risks and convert uncertainty to some certainty (‘predictable cash -flow’) due to the self-liquidating nature of transactions.
This is a new brand of “Socialized Lending”, assisting both lenders and borrowers without “winners” and “losers” to transactions, and contributing to global growth.
Market-Based Financing: Structured Trade Finance
Why Trade Finance?
Trade Finance has historically been something that only banks have been able to engage in. Synthesis Structured Commodity Trade Finance Limited is changing that, bringing one of the most secure asset classes to professional and institutional bond investors.