Trade finance where banks can't reach.
A collateral-backed trade finance fund providing short-duration financing across the commodity supply chain. We hold continuous legal title to the underlying goods from supplier to buyer, deploying LP debt capital into mid-market commodity flows worldwide — wherever banks have retreated — with principal protected by the commodity itself.
$2.5T
Trade finance gap
90 days
Average tenor
100%
Title-controlled collateral
Trade finance gap estimate: Asian Development Bank, Trade Finance Gaps, Growth, and Jobs Survey.
/ The Market
A $2.5 trillion structural inefficiency in global trade.
Post-crisis capital rules have steadily priced banks out of mid-market commodity trade finance, while demand for secured working capital keeps growing. The result is persistent, structural demand for collateral-backed trade credit at premium rates.
Basel III
Capital rules behind the bank pullback from trade finance
$0.5–5M
Target transaction size — the mid-market corridor
30–120d
Trade cycle duration
Market Structure
For lenders, this imbalance is the opportunity. Excess demand from creditworthy borrowers means the fund can stay highly selective — hard collateral, conservative structures, and premium pricing on every dollar deployed.
A global mandate — North America · Europe · Middle East · Asia
Opportunities are underwritten on merit wherever they arise.
/ Strategy
Trade finance, secured by physical title.
We fund the gap between supplier payment and buyer collection. The inventory itself is the collateral, and we hold legal title until payment clears.
Capital efficiency
Short-duration LP capital deployed strictly into commodity credit. 90-day average tenor drives ~4x annual portfolio turnover.
Operational control
Continuous legal title to the underlying inventory, with monitored warehousing, embedded hedging, and a network for rapid liquidation.
Risk containment
Disciplined, institutional-grade underwriting with layered mitigants — margin buffers, benchmark-matched pricing, independent surveyors, and insurance — validated across commodity cycles.
Yield conversion
High, collateral-backed portfolio yields delivered as institutional-grade net returns to LPs after credit costs. Full economics are set out in the fund documentation.
The Trade Cycle
Offshore sourcing
Suppliers & factories
Voyage & storage
30–120 day cycle
Onshore sales
MSME buyers / offtakers
/ Approach
Speed, control, and alignment.
Mid-market commodity flows require fast credit decisions, physical control of the collateral, and a lender that does not compete with its borrowers. The fund is built around those three requirements — and the scarcity of capital that meets all three is what sustains the yield. Opportunities are assessed on the merit of each transaction — collateral, counterparty, and cycle — not on geography.
Speed
Underwriting and deployment matched to the pace of physical trade — credit decisions in days, against documented collateral, without the timelines of a bank credit committee.
Physical control
Continuous legal title to the goods from purchase through repayment, with monitored storage, embedded hedging, and an established network for rapid liquidation.
Alignment
A pure financing counterparty. The fund does not trade for its own account and never competes with the borrowers it finances.
/ Risk Framework
Every risk underwritten is a risk controlled.
Every loan is over-collateralized by physical commodities the fund takes ownership of before any capital is released. If a borrower defaults, Traxo owns the commodity — and a layered monitoring discipline surfaces stress long before default.
Where the yield comes from
An access premium, not a risk premium.
We earn a premium by serving creditworthy borrowers that sit outside bank risk appetite — filling a structural gap in the market — not by lending to riskier credits. The spread is compensation for reach and operational complexity, not for taking on more default risk. The lending is low-risk by design:
Short tenor
30–120 day self-liquidating loans, ~4x annual turnover — little time at risk on any dollar deployed.
Over-collateralized
The fund holds title to goods worth more than the loan: a 10–30% buyer advance plus daily mark-to-market.
Liquid collateral
Index-priced commodities with deep secondary markets — resale at or near mark within days if needed.
Bill of Lading
The document of title controlling physical possession of the goods, held by the fund from the moment of purchase.
Secure storage
Monitored warehousing with controlled access and insurance cover throughout the storage period.
Legal title transfer
Enforceable ownership through the full trade cycle. Capital is never released until title has transferred.
Continuous Surveillance
Early-warning monitoring
Continuous review of margin depletion, covenant drift, and liquidity signals — triggering pre-default remediation at the first sign of stress.
Shipment monitoring
Vessel positions, port congestion, and route deviations tracked throughout transit, so exposure can be repriced mid-loan.
Counterparty surveillance
Ongoing screening of sanctions lists, adverse media, and filings — flagging deteriorating counterparties before exposure compounds.
Stress testing
Scenario analysis across commodity cycles, FX shocks, and tail events, with forward-looking loss distributions.
Underwriting targets, portfolio concentration limits, and stress-test results are detailed in the fund documentation, available to qualified investors on request.
/ Structure & Governance
An institutional structure for global LPs.
A Cayman closed-ended trade finance fund, with operations and servicing conducted from the Dubai International Financial Centre — disciplined full-cycle operations, from origination through recovery, embedded in the trade corridors where we lend.
Traxo Capital — Fund
Closed-ended trade finance fund and capital hub, built for global LP access. The fund holds the loan book — with legal title to collateral held within its wholly-owned structure — and handles LP subscriptions, distributions, and reporting.
Traxo DIFC — Operations
On-the-ground origination, underwriting, and portfolio servicing and monitoring, embedded in the trade corridors where the fund lends. Every transaction is originated, monitored, and serviced through the full trade cycle, from first advance through recovery.
Independent fund administration, audit, and legal counsel. Service providers and fund terms are set out in the fund documentation.
/ The Team
Founded by operators and capital markets specialists.
A founding team that has managed physical commodities and capital markets for over two decades.
Ballabh Modani
Founder & CEO
25 years underwriting commodity risk — over US$1B in physical trade flows personally transacted and US$400–500M in structured trade transactions across jurisdictions. Founded three commodity trading platforms.
Chartered Accountant, ICAI · MA Economics, Fergusson College
Pankaj Nagar
COO
20+ years in institutional credit and trade finance across banking, alternative funds, and fintech — including Executive Director at Standard Chartered and an agri-lending book built at Edelweiss with no credit losses.
MBA, IIT Bombay SJMSOM · B.E., MANIT Bhopal
Vincent Fernando, CFA
CFO
20+ years in institutional capital markets across five jurisdictions, with 100+ institutional investor relationships across APAC and North America. Founder of Zero One; previously led institutional research at Citi, Macquarie, and Religare.
CFA Charterholder · Columbia CFO Executive Program · BS, Tufts University
/ Investor Access
Fund documentation, for qualified investors.
Traxo Capital works with professional investors — family offices, institutional allocators, and their advisers. The fund's offering documents, terms, and data room are made available on request, following a brief qualification conversation.
Professional, accredited & institutional investors only