UK-based Kimura Capital has closed its trade finance fund, adding to wider market challenges around financing for smaller and mid-sized commodity traders. 

Bloomberg reported on December 17 that Kimura Capital was shutting down its London-based lending business and returning money to backers, including institutional investors such as Goldman Sachs Asset Management. 

GTR understands that the company has already sold the Kimura Commodity Trade Finance Fund’s exposures to a third party, following concerns over whether it had sufficient working capital to continue operating. Kimura did not respond when contacted. 

Kimura had cemented its role as one of relatively few private credit providers to smaller and mid-sized commodity traders, a market segment that has increasingly struggled to obtain finance from traditional lenders. 

A liquidity crunch during the pandemic sparked a wave of insolvencies in the commodity trading sector. 

Kimura was left as a secured creditor of Rhodium Resources, now called Antanium Resources, which has been locked in insolvency proceedings for more than three years.  

It also fought a court battle in the UK over the default of Chilean copper mining company MTV, eventually winning on appeal. However, sources tell GTR they do not believe those proceedings influenced Kimura’s decision to close the commodity trade finance fund.  

Bloomberg has reported that a hedge fund joint venture with Gaspara Asset Management is also no longer going ahead. The company remains active in the sports management sector. 

Kimura’s exit closely follows the downfall of invoice financing fintech Stenn, which was placed in administration in early December. 

It has since emerged that Stenn had its banking facilities frozen by Citi and that HSBC Innovation Bank had become concerned over compliance risks.