Marco Capital is a technology-enabled provider of trade finance solutions to Latin American exporters. The Company offers a factoring platform that buys invoices from the exporters at an upfront discount and collects payments directly from U.S. based buyers, which are typically large retailers such as Costco or Walmart.
The natural barriers to entry of the asset class and its attractive characteristics make it a powerful portfolio tool and a structural source of yield enhancement with low correlation to other traditional asset classes. In today’s short-term, fixed income environment, trade finance, and trade receivable assets offer several interesting features, including attractive alpha yields, consistent returns, low volatility, and “real economy” investments tied to specific commercial transactions. They also offer comparatively low default rates. Given the short duration of these loans, risk is more contract-related than market-related, making them mostly an uncorrelated asset class.
Arcadia's domain expertise in financial products geared towards SMEs, in addition to their exceptional track record supporting fintech start-ups focused on innovation and achieving scale, has made them an invaluable partner of Marco Financial."