TriLinc Global Impact Fund LLC Files 2023 10-K

TL;DR

<b>TriLinc Global Impact Fund LLC reported a slight decrease in net income and EPS for FY 2023, despite an increase in total assets.</b>

AI Summary

TriLinc Global Impact Fund LLC (TRLC) filed a Annual Report (10-K) with the SEC on March 29, 2024. Total assets grew to $350.1 million in FY 2023 from $323.4 million in FY 2022. Net income for FY 2023 was $10.44 million, a slight decrease from $10.58 million in FY 2022. Earnings per share (EPS) for FY 2023 were $0.85, down from $0.88 in FY 2022. The company reported total debt of $1.21 million as of December 31, 2023. Gross margin was 16.72% in FY 2023, compared to 16.75% in FY 2022.

Why It Matters

For investors and stakeholders tracking TriLinc Global Impact Fund LLC, this filing contains several important signals. The slight decline in net income and EPS, while assets grew, suggests potential pressure on profitability or increased operating expenses. The company's focus on impact investments means its financial performance is tied to the success and financial health of the underlying portfolio companies, which can be subject to unique risks.

Risk Assessment

Risk Level: medium — TriLinc Global Impact Fund LLC shows moderate risk based on this filing. The company's financial performance is sensitive to the performance of its impact investments, which carry inherent risks related to emerging markets and specific project execution, as evidenced by the settlement agreement with Courtyard Farms Limited and Alfa Systems.

Analyst Insight

Monitor the company's ability to improve profitability and manage the risks associated with its impact investment portfolio in the upcoming fiscal year.

Financial Highlights

debt To Equity

0.00384

revenue

350,118,576

total Assets

350,118,576

total Debt

1,210,000

net Income

10,443,595

eps

0.85

gross Margin

16.72%

revenue Growth

5.718%

Key Numbers

• 350,118,576 — Total Assets (As of December 31, 2023.)
• 10,443,595 — Net Income (For the fiscal year ended December 31, 2023.)
• 0.85 — EPS (For the fiscal year ended December 31, 2023.)
• 1.21 — Total Debt (As of December 31, 2023 (in millions).)
• 16.72% — Gross Margin (For the fiscal year ended December 31, 2023.)

Key Players & Entities

• TriLinc Global Impact Fund LLC (company) — Filer of the 10-K report.
• 1230 Rosecrans Ave (address) — Business and mailing address of the company.
• Manhattan Beach (location) — City of the company's business and mailing address.
• CAGSA (company) — Investment on the Watch List using the income approach.
• Courtyard Farms Limited (company) — Original borrower of an investment that entered a settlement agreement.
• Alfa Systems (company) — Original borrower of an investment that entered a settlement agreement.

FAQ

Risk Factors

• Valuation of Investments [medium — financial]: The fair value of the company's investments is determined using various valuation techniques, including the income approach and collateral-based approach, which involve significant unobservable inputs and assumptions.
• Portfolio Company Performance [medium — operational]: The company's financial results are dependent on the performance of its impact investments, and adverse performance or defaults by portfolio companies can negatively impact the company.
• Compliance with Investment Mandates [low — regulatory]: The company must adhere to its investment mandates and regulatory requirements related to impact investing, and failure to do so could result in penalties or reputational damage.

Key Financial Figures

• $5 — inancing generally ranging in size from $5-20 million per transaction for direct S
• $500,000 — er transaction for direct SME loans and $500,000 to $15 million for trade finance transa
• $15 million — on for direct SME loans and $500,000 to $15 million for trade finance transactions. We seek
• $1.5 billion — ed our initial public offering of up to $1.5 billion in units of our limited liability compa
• $1.25 billion — y company interest, consisting of up to $1.25 billion of units in our primary offering, consi
• $10.00 — units at the initial offering prices of $10.00 per unit and $9.576 per unit, respectiv
• $9.576 — offering prices of $10.00 per unit and $9.576 per unit, respectively, and Class I uni
• $9.025 — nit, respectively, and Class I units at $9.025 per unit, which we refer to as the prim
• $250 million — r to as the primary offering, and up to $250 million of units pursuant to our distribution r
• $200,000 — A units for aggregate gross proceeds of $200,000. In June 2013, we satisfied our minimum
• $2,000,000 — ied our minimum offering requirement of $2,000,000 when the Sponsor purchased 321,330 Clas
• $2,900,000 — A units for aggregate gross proceeds of $2,900,000 and we commenced operations. The Offeri
• $361,776,000 — f the Offering, we raised approximately $361,776,000 in gross proceeds, including approximat
• $13,338,000 — gross proceeds, including approximately $13,338,000 raised through the Distribution Reinves
• $75 million — mination of the Offering, we registered $75 million in Class A, Class C and Class I units t

Filing Documents

• trlc20240328_10k.htm (10-K) — 3440KB
• ex_599340.htm (EX-21.1) — 10KB
• ex_599343.htm (EX-31.1) — 12KB
• ex_599344.htm (EX-31.2) — 13KB
• ex_599345.htm (EX-32.1) — 11KB
• image01.jpg (GRAPHIC) — 8KB
• 0001437749-24-010102.txt (&nbsp;) — 14275KB
• trlc-20231231.xsd (EX-101.SCH) — 87KB
• trlc-20231231_cal.xml (EX-101.CAL) — 33KB
• trlc-20231231_def.xml (EX-101.DEF) — 508KB
• trlc-20231231_lab.xml (EX-101.LAB) — 422KB
• trlc-20231231_pre.xml (EX-101.PRE) — 539KB
• trlc20240328_10k_htm.xml (XML) — 3840KB

Business

Business 5 Item 1A

Risk Factors

Risk Factors 17 Item 1B Unresolved Staff Comments 33 Item 1C Cybersecurity 33 Item 2

Properties

Properties 33 Item 3

Legal Proceedings

Legal Proceedings 33 Item 4 Mine Safety Disclosures 33 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6 Reserved 36 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8

Financial Statements

Financial Statements 53 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 53 Item 9A

Controls and Procedures

Controls and Procedures 53 Item 9B Other Information 54 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 54 PART III Item 10 Directors, Executive Officers, and Corporate Governance 55 Item 11

Executive Compensation

Executive Compensation 61 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 63 Item 13 Certain Relationships and Related Transactions, and Director Independence 63 Item 14 Principal Accounting Fees and Services 66 PART IV Item 15 Exhibits and Financial Statement Schedules 67

Signatures

Signatures Item 16 Form 10-K Summary 68 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or Exchange Act. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "believe," "could," "project," "predict," "continue," "future" or other similar words or expressions. Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Such statements include, but are not limited to, those relating to our ability to deploy capital quickly and successfully, our ability to pay distributions to our unitholders, our reliance on TriLinc Advisors, LLC, or the Advisor, and TriLinc Global, LLC, or the Sponsor, strategies and investment activities and our ability to effectively deploy capital. Our ability to predict results or the actual effect of plans or strategies is inherently uncertain. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements and you should not unduly rely on these statements. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from those forward-looking statements. These factors include, but are not limited to: our future operating results; our ability to purchase or make investments in a timely manner; our busi

BUSINESS

ITEM 1. BUSINESS TriLinc Global Impact Fund, LLC is a Delaware limited liability company formed on April 30, 2012. Unless otherwise noted, the terms "we," "us," "our," "the Company," "Trilinc," and "our Company" refer to TriLinc Global Impact Fund, LLC; the terms our "Advisor" and "TriLinc Advisors" refer to TriLinc Advisors, LLC, our external advisor; the term "SC Distributors," formally known as StratCap Securities, and our "dealer manager" refers to SC Distributors, LLC, our dealer manager; and the term our "Sponsor" refers to TriLinc Global, LLC, our sponsor. Overview The Company makes impact investments in Small and Medium Enterprises, or SMEs, which we define as those businesses having less than 500 employees, primarily in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. To a lesser extent, we may also make impact investments in companies that may not meet our technical definition of SMEs due to a larger number of employees but that also provide the opportunity to achieve both competitive financial returns and positive measurable impact. We generally expect that such investments will have similar investment characteristics as SMEs as defined by us. We were organized as a Delaware limited liability company on April 30, 2012. We believe that we operate and intend to operate our business in a manner that permits us to maintain our exemption from registration under the Investment Company Act of 1940. We invest in SMEs through local market sub-advisors and our objective is to build a diversified portfolio of financial assets, including direct loans, loan participations, convertible debt instruments, trade finance, structured credit and preferred and common equity investments. We anticipate that a substantial portion of our assets will continue to consist of collateralized private debt instruments, which we believe offer opportunities for competitive risk-adjusted returns through inc

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View this 10-K filing on SEC EDGAR