Trilinc Global Impact Fund Llc. · OTC:TRLC
Trilinc Global Impact Fund — Q3 2021 Earnings Presentation
40 slides from Trilinc Global Impact Fund's earnings presentation, Dec 1, 2021
Slide 1: Invest With Impact webinar welcome
TRILINC GL@BAL INVEST WITH IMPACT We will begin at 11:00am PT (2:00pm ET). Thank you for joining us! TRILINC GLSBAL 1
Slide 2: TriLinc Global Impact Fund: Q3 2021 Update
TRILINC GL@BAL INVEST WITH IMPACT TRILINC GLOBAL IMPACT FUND: Q3 2021 UPDATE DECEMBER 1, 2021
Slide 3: Disclaimer
This Presentation (the “Presentation”) is for informational purposes only, is being furnished on a highly confidential basis, and is intended solely for the persons receiving it; any reproduction or distribution is prohibited and illegal. This document does not constitute an offer of securities and
Slide 4: Portfolio Overview
PORTFOLIO OVERVIEW TRILINC GLSBAL 4
Slide 5: Private Debt Plus: Market Rate Returns + Positive Impact
▪ Private Debt Plus® = Market Rate Returns + Positive Impact ▪ International Private Credit Fund – Private Loans to Private Companies ▪ Designed to: ▪ Generate income ▪ Preserve capital ▪ Offer modest capital appreciation ▪ Create positive, measurable impact ▪ Also intended to be non-correlated with
Slide 6: Typical Investor Allocation
TYPICAL INVESTOR ALLOCATION1 Cash ▪ Liquidity Equity Fixed Income Alternatives Cash Fixed Income ▪ Capital preservation ▪ Income Equity ▪ Growth ▪ Some income Alternatives Debt Equity ▪ Income ▪ Growth ▪ Capital preservation ▪ Non-correlation ▪ Non-correlation ▪ Sometimes Income For illustrative pur
Slide 7: Portfolio key statistics
Total Amount Financed $1.19 billion Total AUM $325.5 mil Full Cycle Loans $829 mil (69.95% of Total Invested) Small & Mid-Sized Businesses 88 Developing Economies1 38 Permanent Jobs2 Supported 42,032 Weighted Average Portfolio Loan Size $8.4 mil Weighted Average Portfolio Duration < 2.0 years Cumula
Slide 8: Portfolio diversification by sector, country, region
Sector Access to Healthcare and Pharmaceuticals Country1 Argentina Botswana Access to Technology Brazil Cabo Verde Inclusive Finance Cameroon Chile Infrastructure Development Colombia Croatia Recycling Ecuador Ghana Responsible Consumer Goods Production Hong Kong Indonesia Responsible Fuel Storage J
Slide 9: TGIF Performance
TGIF PERFORMANCE TRILINC GLSBAL 9
Slide 10: TGIF Since-Inception IRR
TGIF Since-Inception IRR (Since Inception 9/30/13 – 9/30/21) 12.00% 10.00% 7.84% 8.00% 7.18% 6.71% 6.13% 5.75% 6.00% 4.00% 2.00% 0.00% Q3E Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 2017 2018 2019 2020 2021 TGIF IRR at Q3 2021
Slide 11: TGIF Actual NAV vs. NAV without Unrealized Losses
TGIF Actual NAV vs. NAV w/out Effect of Unrealized Losses & Return of Capital Elimination of Expense Support (Q1 2018-Q3 2021) Q4 - 2013 NAV Per Unit Price Unrealized Effect Realized Effect Return of Capital Effect $8.573 $9.000 $8.466 $8.421 $8.379 $8.355 $8.227 $8.500 $8.166 $8.134 $8.105 $8.024 $
Slide 12: Non-Performing Loans Since Inception
Number of Dollar Amount Transactions Total Invested Since Inception1 ~ $1.2 billion Total NPLs Since Inception2 17 ~$90.6 million NPLs “Rehabilitated” or Fully Paid3 4 ~$19.2 million Current NPLs4 13 ~$75.6 million ▪ IIG-Related 6 ~$40.9 million ▪ Non-IIG Related 7 ~$34.7 million 0.08% Total Realize
Slide 13: Private Debt Plus Since-Inception IRR
Private Debt Plus® Since-Inception IRR (Since Inception 9/30/13 – 6/30/21) 12.00% 10.00% 7.84% 8.00% 7.38% 7.27% 6.78% 6.00% 4.00% 2.00% 0.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 2017 2018 2019 2020 2021 PDP IRR at Q2 20
Slide 14: Blended Average Target Return
$100 million Total Investment $33.3mm $33.3mm $33.3mm Blended Average Fund – Vintage I Fund – Vintage II Fund – Vintage III Target Return Typical Business Cycle1 Peak Trough Expansion Recession Expansion 1) Capital Economics illustration of typical business cycle 14
Slide 15: Fair Value of Watchlist Loans by Year
Fair Value of Watchlist Loans by Year $60,000,000 Typical Business Cycle1 $50,000,000 Peak $40,000,000 $30,000,000 $20,000,000 Trough $10,000,000 Expansion Recession Expansion $- 2013 2014 2015 2016 2017 2018 2019 2020 2021 Tier III Tier IV 1) Capital Economics illustration of typical business cycle
Slide 16: Looking Forward
LOOKING FORWARD TRILINC GLSBAL
Slide 17: Two key headlines
Total Vaccine Doses Administered per 100 people by Region Source: Capital Economics Two key headlines 1. Economic recovery rates directly related to vaccination rates 2. Recent slowdown in global recovery resulting from: ▪ Global supply chain disruptions ▪ Higher input costs from increasing commodit
Slide 18: Regional economic outlook
Emerging Europe ▪ Economic expectations for the region continue to be very strong as relatively higher vaccination rates helped boost economic activity – GDP forecast remains at 5.8% ▪ Supply chain disruptions and high costs of raw materials are critical for economic normalization Emerging Asia ▪ Th
Slide 19: TriLinc Investment Thesis
TRILINC INVESTMENT THESIS TRILINC GLSBAL
Slide 20: SMEs and developing economies opportunity
Small and medium size enterprises are the Developing economies represent a tremendous backbone of the global economy opportunity ▪ SMEs represent more than 90% of the business population1 ▪ 86% of the world’s population lives in developing countries3 ▪ Micro- and small enterprises account for up to
Slide 21: Emerging markets population and GDP growth
World Population, 1950-20502 10 2021 Population (Billions) 8 6 “Emerging markets represent 4 “Emerging markets represent the Less Developed Countries the biggest biggest growthgrowth opportunity opportunity in the 2 More Developed Countries in the history of history of capitalism… capitalism… 0 1950
Slide 22: SME financing gap
Lack of finance is one of the biggest hurdles that prevent developing economy SMEs1 from growing, creating quality jobs and contributing to the further development of local healthcare, education and other community services. Access to affordable capital for Small and Large Corporations Medium-Sized
Slide 23: Investment Strategy and Why Invest With TriLinc
® Investment Strategy ▪ International Private Credit ▪ Select Developing Economies and U.S.1 ▪ Growth Stage Small to Mid-Sized Private Companies “Society is demanding companies, both ▪ Trade Finance and Short-Term Project Loans public and private, to serve social ▪ Senior Secured, Over-Collateralize
Slide 24: Developing economies are growth markets
Developing Economies are growth markets. With a variety of nuances, you can’t paint the entire market with one brush. Each market needs to be looked at individually. Common Misperceptions TriLinc's Reality ▪ Technically, “Emerging Markets” refers only to the countries with some form of public stock
Slide 25: ESG and Impact
ESG and Impact is in our DNA and has been part of our Mission, Philosophy, and Process from day one. TriLinc has invested over $1.19 billion through TGIF supporting 88 Small & Mid-Sized Businesses in 38 Developing Economies. Top 10 Impact Objectives1 ESG Screen Summary Productivity & Competitiveness
Slide 26: Borrower case study: Ecuador packaging manufacturer
Company Overview Use of Proceeds ▪ Established in 1965 ▪ In 2020, TriLinc’s financing provided critical support for the company’s continued growth, enabling it to ▪ Located in Ecuador’s coastal city of Guayaquil continue to fulfill important supply contracts with ▪ Began as maker of quality corrugat
Slide 27: Private Debt Plus track record and key disciplines
® Centered on providing access to finance to underserved SMEs, with a focus in developing economies, we believe our investment strategy is both a profitable investment position and an effective driver of sustainable economic development. Private Debt Plus® - Track Record Key Disciplines Led by a tea
Slide 28: Typical company capital structure and risk management
Private lending can give investors payment priority over that of other types of investors in the corporate capital structure. Typical Company Capital Structure Risk Management Senior Debt Collateral Senior creditor position Subordinated Debt Accounts receivables Priority claim on company cash flow I
Slide 29: Private vs public investment dispersion
The wider array of value levers and risk drivers in private markets can result in greater performance dispersion vs. public markets. Private Sourcing Information Structuring & Use (or misuse) Negotiation of Leverage Valuation Asset Allocation Valuation Asset Allocation Private Investments Public Inv
Slide 30: Volatility and returns vs. other asset classes
Volatility Standard Deviation (“STD”) vs. Annual Returns US Hedge Global 4 5 Asset S&P 500 TGIF 16.0% Bonds1 Funds2 Stocks3 Average Annualized Returns (%) 2.29% 4.32% 10.88% 14.34% 7.49% S&P 500 (4) Annualized Returns STD (%) 3.15% 6.01% 14.46% 14.13% 0.57% 14.0% Sharpe Ratio6 -0.13 0.25 0.55 0.81 1
Slide 31: Methodology and footnotes
Methodology: The volatility and correlation analysis was conducted using quarterly returns (%) including TriLinc Global Impact Fund Since Inception Net IRR from each quarter. Average annualized returns (%) are displayed for reference and were calculated using average quarterly return (%) results. Th
Slide 32: Other Updates
OTHER UPDATES TRILINC GLSBAL
Slide 33: Current Options Being Pursued
Current Options Being Pursued ▪ IFC A/B Loan ▪ Up to $175 million facility ▪ Still in late stages of re-approval ▪ Specialty Finance Company ▪ Sourced through Placement Agent ▪ Considered pre-IFC, now pursuing in parallel ▪ Insurance wrapped “bond” sold through a bank ▪ TriLinc Organized “Syndicatio
Slide 34: Distribution reinvestment program reopened
▪ Effective 5/29/20, the TGIF DRP program was reopened and available for investors1 ▪ DRP units are purchased at current NAV ▪ Opportunity to dollar cost average investment 1) Includes Unitholders who own Class A, Class C, Class I, Class W or Class Y Units. 34
Slide 35: Why TGIF continues to be attractive
▪ We believe that TGIF continues to be an attractive investment for clients, offering: ▪ Relative stable value ▪ High income ▪ Non-correlated ▪ Impact ▪ The TriLinc team continues to focus on maximizing value for investors, including increasing total returns and obtaining leverage for TGIF ▪ The Boa
Slide 36: Management team
Gloria Nelund: Chairman & CEO Brent L. VanNorman, Esq.: President ▪ Former CEO of $50 billion Deutsche Bank Private Wealth ▪ Experienced executive manager with over 25 years Management North America & former CEO of $35 billion Bank professional experience in law, accounting and business of America’s
Slide 37: Thank you!
If you have any additional questions, please feel free to reach out to TriLinc directly. Angie Miller [email protected] (602) 908-3417 TGIF Website: www.TrilincGlobalImpactFund.com Thank you! 37
Slide 38: Disclaimer
This Presentation (the “Presentation”) is for informational purposes only, is being furnished on a highly confidential basis, and is intended solely for the persons receiving it; any reproduction or distribution is prohibited and illegal. This document does not constitute an offer of securities and
Slide 39: TGIF Liquidation Strategy Discussion
TGIF LIQUIDATION STRATEGY DISCUSSION TRILINC GLSBAL
Slide 40: Board review of strategic alternatives
• In late 2020, the TGIF Board hired a nationally recognized investment banking firm with an expertise in alternative investments and direct participation programs • Stanger was engaged to review and evaluate potential strategic alternatives for TGIF, including: o Listing o Merger o Liquidation o Ex
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