2009 Due Diligence Forum

Global income opportunities in the listed small cap sector


Of Interest - Fixed Interest / Credit


Trafalgar Capital Advisors

Research Paper

This research paper argues that the disintermediation for capital raising for SME’s has opened up significant investment opportunities for direct lenders. In short, SME’s needs are the same as medium- to large-sized enterprises but access to capital is not the same, thus producing an environment where investors can cherry pick their deal prospects. The credit crunch has exacerbated the situation as lending sources have all but evaporated. Lenders are able to procure much higher quality/lower risk deals at significantly higher yields as the market continues to tighten lending options, creating an almost infallible investment product. Available capital is the key to capitalising on the opportunity.


Bob Press, Managing Director, Trafalgar Capital Advisors