Business Model – NFG Capital

NFG Capital business model is based on the core proposition of selectively providing commercial indemnities & guarantees. It has a particular focus on the trade finance & structured products sector, applied across multiple industries but with a particular focus on continental Europe & Africa and thereinafter Asia. The business was formed to focus as an enabler of commercial transactions through the provision of indemnities & guarantees between counterparties. NFG Capital acts as principal in the provision of commercial terms, (see further summary of our “core product sets”). We are not regulated but use our regulated and approved partners & associates, to facilitate specialist support where required. The underlying strength of NFG Capital is growing its capital base, through retaining its income and making long term investments.

As part of the provision of commercial indemnities and guarantees, a fee is paid for the risk assumed. Collateral is provided by the guaranteed party, to be drawn upon in the unlikely event of a call on the obligation, with such collateral being at least equal in value to the guaranteed sum. Depending on the constraints and challenges in delivering the financial obligation, the solution may incorporate an alternative risk transfer component.

NFG Capital’s financial approach is to maintain cash and securities in order to demonstrate financial strength and stability. This is essential to attract opportunities and retain credibility when bidding for, or structuring, indemnity and guarantee solutions for our target clients. The management of risk is fundamental to NFG Capital’s business model, and its principals are highly experienced in the identification, management, and mitigation of risk, with proven track records in the field. Although NFG Capital is not itself regulated, it conducts its operations as though it were, adhering to comparable standards of risk management, capital allocation, and corporate governance.

Within this context, risk management also encompasses the recognition of, and reliance upon, NFG Capital’s strategic relationships with financial partners, including banks and investment managers. To this end, NFG Capital seeks to collateralize the risk it assumes in acting as principal for indemnities and guarantees. As a result, in the event of a call on an obligation, NFG Capital has access to sufficient funds to meet the liability it has contractually undertaken.

Our Core Products