Tue, May 13, 5:40 PM (41 days ago)
### TriLinc Global Impact Fund, LLC (TRLC) - Q1 2025 Summary **Overview:** TriLinc Global Impact Fund, LLC (TRLC) is an impact investment fund focused on Small and Medium Enterprises (SMEs) in developing economies. The fund aims to generate competitive financial returns while creating positive, measurable impact. TRLC invests in a diversified portfolio of financial assets, including direct loans, convertible debt instruments, trade finance, structured credit, and preferred and common equity investments. **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $6.3 million, a decrease from $6.4 million in Q1 2024. The decline was primarily due to a decrease in interest income and fee income. - **Expenses:** Operating expenses for Q1 2025 were $3.1 million, a decrease from $3.2 million in Q1 2024. This decrease was driven by elevated general and administrative expenses related to filing a Registration Statement on Form S-1 during Q1 2024. - **Net Income:** Net investment income for Q1 2025 was $3.1 million, slightly down from $3.2 million in Q1 2024. - **Net Asset Value (NAV):** The NAV per unit increased by approximately $0.06 to $5.95 as of March 31, 2025, compared to $5.89 as of December 31, 2024. This increase was due to improved macroeconomic conditions and gradual ramp-up of trading activities by some borrowers. - **Cash Flow:** Cash flows from operating activities decreased by $4.3 million in Q1 2025 compared to Q1 2024, primarily due to a $3.9 million decrease in proceeds from disposition and paydowns of investments. **Investment Portfolio:** - **Investment Types:** As of March 31, 2025, TRLC's portfolio included senior secured term loans, term loan participations, trade finance participations, convertible notes, and other investments. - **Geographic Diversification:** Investments are spread across various countries, with significant exposures in Argentina, Brazil, Cabo Verde, Cameroon, Chile, Ecuador, Hong Kong, Indonesia, Kenya, Malaysia, Mexico, Namibia, Netherlands, Nigeria, Peru, Romania, Singapore, and Uganda. - **Watch List Investments:** As of March 31, 2025, 21 portfolio companies were on the Watch List, representing 60.6% of the fair value of TRLC's total investments. These investments are subject to significant changes in credit and collection risk. **Liquidity & Future Operations:** - **Liquidity Constraints:** TRLC has faced liquidity constraints due to borrowers' challenges in repaying obligations. The fund has sold a portion of its investment in TriLinc Peru S.A.C. to increase liquidity. - **Future Operations:** TRLC plans to continue pursuing multiple strategies to address temporary liquidity needs, including selling investments, seeking new credit facilities, and pursuing additional financing transactions. **Risks & Uncertainties:** - **Macroeconomic Risks:** The fund faces risks related to global economic conditions, including inflation, high interest rates, and trade disputes. The prospect of significant tariffs imposed by the U.S. government on certain non-U.S. countries is a critical near-term risk factor. - **Borrower Risks:** Many borrowers are struggling to recover from the compound impact of approximately three years of economic hardship, which has made it challenging for them to repay their obligations to TRLC. **Conclusion:** TriLinc Global Impact Fund, LLC (TRLC) continues to navigate a challenging economic environment, with liquidity constraints and borrower repayment issues. The fund is taking steps to address these challenges and pursue growth opportunities while maintaining its focus on impact investing.