Thursday, February 22, 2024

Trade Management Firm XIX International and its Private Equity Role in the Global Trade Business

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You might have heard by now of XIX International, as this Dubai-based trade management consulting firm works with general trade sector companies and helps international vendors and buyers understand each other. Buyers and sellers tend to disagree on many things, especially when dealing internationally between different jurisdictions. Legal practices and regulations strictly limit management and execution strategy.

Trade business is never straightforward and can easily turn into a large complication. Companies that purely exist in this heavily competitive industry get beaten down by competition if they have no edge. In tech, platforms usually have an edge that drives user acquisition, but what possible edge can a trading firm have that supplies corn and wheat?

Whether it’s agriculture, precious metals, oil and gas, soft commodities, pharmaceuticals, electronics or any other physical products, all of them have one thing in common, which is a mutually similar business trade process that involves manufacturing and production, logistics, contracting, and negotiations.

The competition inside the commodity market is blasting over the roof. The only difference that makes buyers work with vendors is a new edge that gives more benefits than competition. One of the primary issues of deal failure is lack of capital. Buyers want to purchase products against credit, and vendors do not accept credit as they want payment in advance before the goods leave the production facilities. Vendors, in this case, would have to take tremendous risks by trusting the opposite party, considering that the market today is not completely honest with payments.

XIX International has recognized this issue over the years; when working with international companies, the challenges in funding follow throughout all sectors. This capital problem leads XIX International to new opportunities for investments.

XIX International provides investment negotiations to clients to arrange capital to finance international trade deals. XIX International partners have extensive experience in capital raising from private and public markets. In fact, private equity investments in trade deals tend to be more lucrative than investing in a tech startup and waiting 5-10 years for an exit.

A well-defined trade deal contract can last anywhere between 6-12 months, which would start bringing profitability right after 2nd or 3rd month. This is a new business model that XIX International provides to clients. XIX International works with international private equity investment groups from the US, Middle East and Asia to provide capital for well-defined trade contracts that need initial funding to kickoff.

XIX International provides not just trade management guidance and advice consulting but also an edge that gives direct value to the trade contract and makes it more attractive to buyers and sellers to engage with each other and execute the deal.

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