GTR Funds Webinar with David Frye
Funds don’t want to replace Banks
One of the stand-out issues raised in the first session was whether or not trade finance funds can – or should – replace banks.
Moderated by Aidan Applegarth, managing director of trade and financial services consultancy Bankingwise, speakers David Frye, CEO of multi-funder platform Levantor, Dave Skirzenski, CEO of Raistone Capital, and Ulla Fetzer, client portfolio manager at NN Investment Partners seemed to be in agreement that the trade finance pie is big enough for everyone, and that all players, from funds to banks and fintechs, have different roles to play.
“We don’t want to take over the relationship part,” says Fetzer. “We are not replacing an originator or replacing a bank. That’s not our intention. We are looking for solid, stable assets that we want to invest in on an ongoing basis.”
“For a while, it looked like banks were going to exit the trade finance space because of Basel III,” says Skirzenski. “But they’ve certainly have been partnering more with fintechs now, and getting back into the space. However, banks will always stay within their box, which is generally investment grade clients that they have a relationship with that they can cross sell to.”
Banks’ role as funders for trade finance funds was also discussed.