DLM has approximately 50 clients who are mainly fund managers, active in emerging and frontier markets. Our clients typically use DLM's systems and outsource the execution of several back and mid office processes to DLM.
The Currency Exchange Fund (TCX)
TCX is a special purpose fund that provides OTC derivatives to hedge the currency and interest rate mismatch that is created in cross-border investments between international investors and local borrowers in frontier and less liquid emerging markets. The goal of TCX is to promote long-term local currency financing, by contributing to a reduction in the market risks associated with currency mismatches.
DLM has assumed full responsibility for the back-office services of TCX.
DLM provides the main system of TCX, and is engaged in the daily operational processes of TCX. The outsourced activities to DLM include amongst other things the administration of the fund, the corporate secretary, managing the cash flows, the financial reporting, the valuation of the portfolio and maintaining the systems.
GuarantCo encourages infrastructure development in low income countries through the provision of credit guarantees that enable infrastructure projects to raise debt finance.
GuarantCo is making use of DLM’s Trade Manager system. DLM is engaged in the daily operational processes of GuarantCo such as deal management, accounting, bank reconciliation, covenant monitoring, risk monitoring, valuation, in- and external reporting.
EDFI Management Company
EDFIMC is the asset management company of the Association of European Development Finance Institutions (EDFI). EDFIMC manages delegated funding from the European Union. Through its vehicle ElectriFI, EDFIMC invests early-stage in renewable energy investments in emerging markets, with a focus on rural electrification. Through its vehicle AgriFI, EDFIMC invests in agri-business in emerging markets.
Frontclear issues Basel III compliant unfunded credit guarantees on financial institutions in emerging and frontier markets. The company participates in transactions in two primary structures: bilaterally in over-the-counter transactions and structurally through the provision of risk capital to infrastructure providers (such as CCPs and CSDs).
Frontclear is making use of DLM’s Trade Manager system. DLM is engaged in the daily operational processes of Frontclear such as payments & collection, accounting, trade capturing, collateral monitoring and valuation.
MFX Solutions is the microfinance industry's first and only dedicated currency hedging facility. MFX was created in 2008 as a dedicated organisation to providing microfinance lenders with affordable and accessible hedging instruments and having the know-how to better manage currency risks. MFX serves both MFI's and MIV's with education and hedging products.
MFX is making use of DLM’s Trade Manager system. MFX has an in-house BO department that is supported by DLM in the area of valuations, risk management and functional application management.