Evolution Credit Partners Management, LLC, a provider of single buyer, non-cancellable Trade Credit Protection (TCP) for accounts receivable from high-yield buyers, announced it has delivered “more than $1 billion in protection since launching its TCP business in late 2020.”
Evolution’s TCP program addresses a gap in the trade finance market—offering credit protection solutions for companies often “unable to secure them through traditional credit insurance or factoring channels.”
The Firm’s customized approach continues “to attract suppliers, banks, and factors seeking flexible, responsive protection for transactions involving below-investment-grade buyers.”
This milestone comes amid a growing demand for alternative trade credit solutions, as companies “grapple with shifting supply chains, rising tariffs, and constrained risk appetite from traditional insurers.”
With high-yield buyer risk rising and liquidity tightening across global markets, Evolution’s TCP offering has emerged as “a tool for mitigating counterparty risk and preserving working capital.”
A recent example of Evolution’s impact is its support of Casas Bahia, a retail chain in Brazil.
In response to limited availability of traditional credit insurance, Evolution structured a large-scale customized TCP solution that “allows Casas Bahia to maintain uninterrupted supply relationships with key global vendors.”
Evolution’s single buyer, non-cancellable TCP offering expands beyond “vendor put” products, with features including:
- Protection against both bankruptcy and non-payment events
- Protection for Preference
- Protection for Work in Progress
- Customizable monthly protection amounts
- Works with existing credit insurance to match supplier’s full needs
- Extension flexibility to match evolving trade exposure timelines
By combining its expertise in leveraged finance and trade finance, Evolution delivers solutions “that help clients manage risk, enhance liquidity, and grow confidently.”
As noted in the update, Evolution Credit Partners Management, headquartered in Boston, Massachusetts with an office in New York, New York, manages approximately “$4 billion across a range of leveraged finance and working capital finance strategies.”
Founded in 2018 after spinning out from Harvard Management Company, Evolution’s credit platform provides “financing solutions across the credit spectrum.”