TriLinc Global Impact Fund LLC - Quarter Report: 2016 June (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2016

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 000-55432

TriLinc Global Impact Fund, LLC

(Exact name of registrant as specified in its charter)

Delaware

36-4732802

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1230 Rosecrans Avenue, Suite 605,

Manhattan Beach, CA 90266

(Address of principal executive offices)

(310) 997-0580

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	¨	Accelerated filer	¨

Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

Table of Contents

Part I. Financial Information		1

Item 1. Consolidated Financial Statements		1

Consolidated Statements of Assets and Liabilities as of June 30, 2016 (unaudited) and December 31, 2015		1

Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015 (unaudited)		2

Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2016 and 2015 (unaudited)		3

Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015 (unaudited)		4

Consolidated Schedules of Investments as of June 30, 2016 (unaudited) and December 31, 2015		5-7

Notes to Consolidated Financial Statements (unaudited)		9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		25

Item 3. Quantitative and Qualitative Disclosures About Market Risk		38

Item 4. Controls and Procedures		39

Part II. Other Information		40

Item 1. Legal Proceedings		40

Item 1A. Risk Factors		40

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		40

Item 3. Defaults Upon Senior Securities		41

Item 4. Mine Safety Disclosures		41

Item 5. Other Information		41

Item 6. Exhibits		41

Part I. Financial Information

Item 1. Consolidated Financial Statements.

TriLinc Global Impact Fund, LLC

Consolidated Statements of Assets and Liabilities

	As of
	June 30,			December 31,
	2016			2015
	(Unaudited)
ASSETS
Investments owned, at fair value (amortized cost of $162,309,992 and $101,346,528, respectively)	$	161,932,491		$	101,028,104
Cash		26,323,028			33,246,769
Interest receivable		5,206,993			3,580,530
Due from affiliates (see Note 5)		2,731,776			1,874,932
Prepaid expenses		38,609			53,181
Total assets		196,232,897			139,783,516

LIABILITIES
Due to unitholders		710,279			548,700
Management fee payable		973,915			135,863
Unit repurchases payable		115,650			—
Due to affiliates (see Note 5)		602,303			472,057
Distribution fee payable		1,331,000			—
Other payables		21,602			6,289
Total liabilities		3,754,749			1,162,909
Commitments and Contingencies (see Note 5)
NET ASSETS	$	192,478,148		$	138,620,607

ANALYSIS OF NET ASSETS:
Net capital paid in on Class A units	$	108,954,429		$	87,625,105
Net capital paid in on Class C units		37,299,818			9,689,230
Net capital paid in on Class I units		57,427,317			49,128,638
Offering costs		(11,203,416	)		(7,822,366	)
Net assets (equivalent to $8.473 and $8.543, respectively per unit based on total units outstanding of 22,716,074 and 16,226,368, respectively)	$	192,478,148		$	138,620,607
Net assets, Class A (units outstanding of 12,072,513 and 9,709,153, respectively)	$	103,000,346		$	82,944,542
Net assets, Class C (units outstanding of 4,280,423 and 1,073,599, respectively)		35,188,742			9,171,672
Net assets, Class I (units outstanding of 6,363,138 and 5,443,616, respectively)		54,289,060			46,504,393
NET ASSETS	$	192,478,148		$	138,620,607

See accompanying notes to the consolidated financial statements.

TriLinc Global Impact Fund, LLC

Consolidated Statements of Operations

(Unaudited)

	Three months ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2016			2015			2016			2015
INVESTMENT INCOME
Interest income	$	4,716,749		$	2,138,151		$	7,966,334		$	3,907,017
Interest from cash		63,980			11,506			156,249			29,122
Total investment income		4,780,729			2,149,657			8,122,583			3,936,139
EXPENSES
Management fees		973,916			424,187			1,790,242			785,935
Incentive fees		745,727			327,310			1,396,075			604,490
Professional fees		252,664			192,093			541,695			482,081
General and administrative expenses		236,239			150,307			438,115			294,364
Board of managers fees		46,875			46,875			93,750			93,750
Total expenses		2,255,421			1,140,772			4,259,877			2,260,620
Expense support payment from Sponsor		(1,203,324	)		(627,668	)		(3,117,668	)		(1,346,933	)
Net expenses		1,052,097			513,104			1,142,209			913,687
NET INVESTMENT INCOME		3,728,632			1,636,553			6,980,374			3,022,452
Net change in unrealized depreciation on investments		—			—			(59,077	)		—
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,728,632		$	1,636,553		$	6,921,297		$	3,022,452

NET INVESTMENT INCOME PER UNITS - BASIC AND DILUTED	$	0.18		$	0.18		$	0.36		$	0.36
EARNINGS PER UNITS - BASIC AND DILUTED	$	0.18		$	0.18		$	0.36		$	0.36
WEIGHTED AVERAGE UNITS OUTSTANDING - BASIC AND DILUTED		20,811,419			9,110,508			19,314,130			8,461,156

See accompanying notes to the consolidated financial statements.

TriLinc Global Impact Fund, LLC

Consolidated Statements of Changes in Net Assets

(Unaudited)

	Six Months Ended
	June 30,			June 30,
	2016			2015
INCREASE FROM OPERATIONS
Net investment income	$	6,980,374		$	3,022,452
Net change in unrealized depreciation on investments		(59,077	)		—
Net increase from operations		6,921,297			3,022,452
DECREASE FROM DISTRIBUTIONS
Distributions to Class A unitholders		(3,910,642	)		(1,346,477	)
Distributions to Class C unitholders		(883,308	)		(193,362	)
Distributions to Class I unitholders		(2,119,510	)		(1,481,815	)
Net decrease from distributions		(6,913,460	)		(3,021,654	)
INCREASE FROM CAPITAL TRANSACTIONS
Issuance of Class A units		26,055,990			15,090,127
Issuance of Class C units		28,942,746			2,263,093
Issuance of Class I units		8,290,299			6,048,937
Repurchase of units		(4,727,281	)		(21,425	)
Class C units distribution fee		(1,331,000	)		—
Offering costs		(3,381,050	)		(1,258,224	)
Net increase from capital transactions		53,849,704			22,122,508
NET INCREASE IN NET ASSETS		53,857,541			22,123,306
Net assets at beginning of period		138,620,607			62,289,992
Net assets at end of period	$	192,478,148		$	84,413,298

See accompanying notes to the consolidated financial statements.

TriLinc Global Impact Fund, LLC

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended
	June 30,			June 30,
	2016			2015
Cash flows from operating activities
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,921,297		$	3,022,452
ADJUSTMENT TO RECONCILE NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS TO NET CASH USED IN OPERATING ACTIVITIES
Purchase of investments		(117,467,057	)		(58,509,596	)
Maturity of investments		56,522,061			43,352,671
Net change in unrealized depreciation on investments		59,077			—
Accretion of discounts on investments		(18,468	)		—
Increase in interest receivable		(1,626,463	)		(1,373,625	)
Increase in due from affiliates		(856,844	)		(576,657	)
Decrease in prepaid expenses		14,572			12,177
Increase in due to unitholders		161,579			71,914
Increase in management fee payable		838,052			110,638
Increase in other payable		15,313			1,506
NET CASH USED IN OPERATING ACTIVITIES		(55,436,881	)		(13,888,520	)
Cash flows from financing activities
Net proceeds from issuance of units		60,335,497			22,404,774
Distributions paid to unitholders		(3,959,922	)		(2,024,271	)
Payments of offering costs		(3,250,804	)		(1,236,903	)
Repurchase of units		(4,611,631	)		(21,425	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		48,513,140			19,122,175
TOTAL (DECREASE) INCREASE IN CASH		(6,923,741	)		5,233,655
Cash at beginning of period		33,246,769			7,875,917
Cash at end of period	$	26,323,028		$	13,109,572
Supplemental non-cash information
Issuance of units in connection with distribution reinvestment plan	$	2,953,538		$	997,383
Accrual of Class C unit distribution fee	$	1,331,000		$	—

See accompanying notes to the consolidated financial statements.

TriLinc Global Impact Fund, LLC

Consolidated Schedule of Investments

As of June 30, 2016

(Unaudited)

Investment Type / Country	Portfolio Company	Sector	Description	Interest		Fees (2)			Maturity (3)	Principal Amount		Participation % (4)		Amortized Cost		Fair Value		% of Net Assets
Senior Secured Term Loan (1)
Brazil	Other Investments (13)	Programing and Data Processing	IT Service Provider		13.50%		2.0	%	10/31/2019	$	6,546,287	N/A		$	6,470,380	$	6,470,380		3.3	%
Indonesia	Other Investments (14)	Primary Nonferrous Metals	Tin Producer		12.00%		0.0	%	6/30/2020	$	3,000,000	N/A		$	3,000,000	$	3,000,000		1.6	%
Total Senior Secured Term Loan (1)															9,470,380		9,470,380		4.9	%
Senior Secured Term Loan Participations (1)
Brazil	Usivale Industria E Commercio (6)	Agricultural Products	Sugar Producer		12.43%		0.0	%	12/15/2016 - 5/15/2017		3,000,000		100%		3,000,000		2,681,576		1.4	%
Cabo Verde	TRG Cape Verde Holdings Limited (14)	Hotels and Motels	Hospitality Service Provider		13.50%		0.0	%	8/21/2021		17,000,000		100%		17,000,000		17,000,000		8.8	%
Nigeria	Helios Maritime I Ltd. (8)	Water Transportation	Marine Logistics Provider		15.64%		0.8	%	9/16/2020		12,719,299		100%		12,635,132		12,635,132		6.6	%
Peru	Corporacion Prodesa S.R.L. (5)	Consumer Products	Diaper Manufacturer		10.44%		0.0	%	12/22/2016 - 6/15/2017		3,250,000		100%		3,250,000		3,250,000		1.7	%
South Africa	Other Investments (14)	Rental of Railroad Cars	Railway Equipment Provider		12.00%		0.0	%	1/31/2020		4,570,621		98%		4,570,621		4,570,621		2.4	%
Total Senior Secured Term Loan Participations															40,455,753		40,137,329		20.9	%
Senior Secured Trade Finance Participations (1)
Argentina	Compania Argentina De Granos (15)	Agricultural Products	Agriculture Distributor		9.00%		0.0	%	9/3/2016 - 9/30/2016		15,000,000		55%		15,000,000		15,000,000		7.8	%
Argentina	Other Investments (15)	Consumer Products	Dairy Co-Operative		10.67%		0.0	%	7/29/2016		6,000,000		16%		6,000,000		6,000,000		3.1	%
Argentina	Other Investments (16)	Meat, Poultry & Fish	Beef Exporter		11.98%		0.0	%	6/30/2017		7,500,000		28%		7,500,000		7,500,000		3.9	%
Argentina	Other Investments (16)	Fats and Oils	Oilseed Distributor		8.75%		0.0	%	10/15/2016 - 12/15/2016		6,000,000		100%		6,000,000		6,000,000		3.1	%
Chile	Other Investments (15)	Farm Products	Chia Seed Exporter		10.90%		0.0	%	12/11/2016		2,356,322		100%		2,356,322		2,356,322		1.2	%
Ecuador	Other Investments (15)	Commercial Fishing	Fish Processor & Exporter		9.00%		0.0	%	6/19/2016 (3)		611,529		93%		611,529		611,529		0.3	%
Ecuador	Other Investments (15)	Fresh or Frozen Packaged Fish	Shrimp Exporter		9.25%		0.0	%	6/6/2017		3,000,000		39%		3,000,000		3,000,000		1.6	%
Ghana	Genser Energy Ghana Ltd. (17)	Electric Services	Power Producer		11.50%		0.0	%	3/10/2017		11,500,000		52%		11,500,000		11,500,000		6.0	%
Guatemala	Other Investments (18)	Farm Products	Sesame Seed Exporter		12.00%		0.0	%	3/31/2016		1,000,000		25%		1,000,000		1,000,000		0.5	%
Italy	Other Investments (17)	Lumber and Other Construction Materials	International Development Logistic Provider		8.50%		0.0	%	1/10/2017 - 3/31/2017		4,284,308		58%		4,284,308		4,284,308		2.2	%
Namibia	Other Investments (16)	Packaged Foods & Meats	Consumer Goods Distributor		12.00%		0.0	%	6/22/2017		750,000		37%		750,000		750,000		0.4	%
Singapore	Export Trading Group Pte. Ltd. (7) (17)	Agricultural Products	Agricultural Products Exporter		11.50%		0.0	%	07/01/16		10,000,000		16%		10,000,000		10,000,000		5.2	%
South Africa	Other Investments (17)	Communications equipment	Electronics Assembler		13.00%		0.0	%	7/27/2016 - 5/21/2017		4,994,532		44%		4,994,532		4,994,532		2.6	%
South Africa	Other Investments (17)	Meat, Poultry & Fish	Meat Processor		14.50%		0.0	%	5/19/2017		1,149,871		37%		1,149,871		1,149,871		0.6	%
South Africa	Other Investments (9)	Food Products	Fruit & Nut Distributor		17.50%		0.0	%	5/22/2015		805,343		20%		805,343		746,266		0.4	%
South Africa	Other Investments (16)	Metals & Mining	Mine Remediation Company		17.50%		0.0	%	6/15/2016 - 8/15/2016		2,500,000		26%		2,500,000		2,500,000		1.3	%
United Kingdom	Other Investments (17)	Coal and Other Minerals and Ores	Metals Trader	9.43% -9.52%			0.0	%	1/5/2017 - 3/31/2017		3,853,428		49%		3,853,428		3,853,428		2.0	%
Zambia	Other Investments (12)	Fertilizer & Agricultural Chemicals	Farm Supplies Distributor	12.08%-12.50%			0.0	%	10/25/15 - 5/3/2016		5,078,526		25%		5,078,526		5,078,526		2.6	%
Zambia	Other Investments (15)	Primary Metal Industries	Integrated Steel Producer		13.00%		0.0	%	8/13/2016		6,000,000		86%		6,000,000		6,000,000		3.1	%
Total Senior Secured Trade Finance Participations															92,383,859		92,324,782		48.0	%
Short Term Notes and Bridge Loan (1)
Mauritius	Barak Fund Management Ltd.(10), (17)	Financial Services	Investment Manager		12.00%		0.8	%	6/20/2016		15,000,000	N/A			15,000,000		15,000,000		7.8	%
Singapore	Export Trading Group Pte. Ltd. (11), (17)	Agricultural Products	Agricultural Products Exporter		12.00%		0.8	%	6/20/2016		5,000,000		8%		5,000,000		5,000,000		2.6	%
Total Short Term Notes and Bridge Loan															20,000,000		20,000,000		10.4	%

Total Investments														$	162,309,992	$	161,932,491

See accompanying notes to the consolidated financial statements.

¹	Refer to Notes 3 and 4 of the consolidated financial statements for additional information on the Company’s investments.

²	Fees may include upfront, origination, commitment, facility and/or other fees that the borrower must contractually pay to the Company. Fees, if any, are typically received in connection with term loan transactions and are rarely applicable to trade finance transactions.

Trade finance borrowers may be granted flexibility with respect to repayment relative to the stated maturity date to accommodate specific contracts and/or business cycle characteristics. This flexibility in each case is agreed upon between the Company and the sub-advisor and between the sub-advisor and the borrower. The Company typically does not consider trade finance investments to be past due until they are over 90 days past the maturity date.

⁴	Percentage of the Company’s participation in total borrowings outstanding under sub-advisor provided financing facility.

⁵	Interest accruing includes 2.5% of deferred interest due at maturity. See discussion about Prodesa in Note 3.

⁶	This investment was on non-accrual status as of June 30, 2016. See Note 3.

⁷	The transaction is secured by specific collateral held by the borrower’s subsidiaries in Kenya, Tanzania, and Zambia.

⁸	Interest accrues at a variable rate of one-month Libor + 10.5%, which is paid monthly, and also includes 4.68% of deferred interest due at maturity. Monthly principal payments starting in May 2016

₉

The Company, together with its Sub-Advisor, have agreed to extend the principal maturity date to facilitate the strategic sale of this borrower. The borrower has been experiencing some cash flow difficulties, but has made some partial payments of principal. The amortized cost includes $152,923 of interest which was capitalized as of March 31, 2016. This investment was on non-accrual status as of June 30, 2016. See Note 3.

₁₀

Barak Fund Management Ltd. (“Barak”) is a sub-advisor to the Company. This unsecured short term note was provided to Barak to support a strategic temporary investment and has been extended, in exchange for an additional 2% monthly fee, until mid-August 2016. Principal and accrued interest are due at maturity.

₁₁	Senior secured bridge loan secured by shares in the borrower. The Company has agreed to extend the maturity date of this loan to mid-August 2016 in exchange for an additional 2% monthly fee. Both principal and interest are due at maturity.

₁₂

$4.1 million of this investment has a maturity date of 10/25/15. The Zambian government, as the purchaser of fertilizer, is responsible for the repayment of this trade finance transaction. The Company has access to insurance should the Zambian government not pay. In addition, the Company ultimately has recourse to the borrower for repayment. See Note 3.

₁₃	Principal and interest paid monthly.

₁₄	Principal and interest paid quarterly.

₁₅	Monthly interest only payment. Principal due at maturity.

₁₆	Quarterly interest only payment. Principal due at maturity.

₁₇	Principal and interest paid at maturity.

₁₈	See Note 3.

TriLinc Global Impact Fund, LLC

Consolidated Schedule of Investments

December 31, 2015

Investment Type / Country	Portfolio Company	Sector	Description	Interest		Fees (2)			Maturity (3)	Principal Amount		Current Commitment (4)		Amortized Cost		Fair Value		% of Net Assets
Senior Secured Term Loan (1)
Brazil	Other Investments	Programing and Data Processing	IT Service Provider		13.50%		0.0	%	10/31/2019	$	5,474,534	$	14,000,000	$	5,474,534	$	5,474,534		3.9	%
Total Senior Secured Term Loan (1)															5,474,534		5,474,534		3.9	%
Senior Secured Term Loan Participations (1)
Brazil	Usivale Industria E Commercio (6)	Agricultural Products	Sugar Producer		17.43%		0.0	%	12/15/2016-5/15/2017		3,000,000		3,000,000		3,000,000		2,681,576		1.9	%
Nigeria	Helios Maritime I Ltd. (8)	Water Transportation	Marine Logistics Provider		15.42%		0.8	%	9/16/2020		12,956,833		16,050,000		12,862,666		12,862,666		9.3	%
Peru	Corporacion Prodesa S.R.L. (5)	Consumer Products	Diaper Manufacturer	15.50%-15.60%			0.0	%	12/22/2016-6/15/2017		2,940,000		3,250,000		2,940,000		2,940,000		2.1	%
Total Senior Secured Term Loan Participations															18,802,666		18,484,242		13.3	%
Senior Secured Trade Finance Participations (1)
Argentina	Compania Argentina De Granos	Agricultural Products	Agriculture Distributor		9.00%		0.0	%	12/15/2015 - 9/23/16		9,700,000		13,000,000		9,700,000		9,700,000		7.0	%
Argentina	Other Investments	Consumer Products	Dairy Co-Operative		10.90%		0.0	%	2/25/16 - 3/31/16		6,000,000		6,000,000		6,000,000		6,000,000		4.3	%
Argentina	Frigorifico Regional Industrias Alimenticias S.A.	Meat, Poultry & Fish	Beef Exporter		11.98%		0.0	%	4/30/2016		9,000,000		9,000,000		9,000,000		9,000,000		6.5	%
Argentina	Other Investments	Fats and Oils	Oilseed Distributor		8.89%		0.0	%	2/3/2016		3,100,000		3,100,000		3,100,000		3,100,000		2.2	%
Chile	Other Investments	Farm Products	Chia Seed Exporter		11.50%		0.0	%	12/11/2016		1,900,000		2,000,000		1,900,000		1,900,000		1.4	%
Ecuador	Other Investments	Commercial Fishing	Fish Processor & Exporter		9.00%		0.0	%	6/19/2016		1,756,243		2,000,000		1,756,243		1,756,243		1.3	%
Guatemala	Other Investments	Farm Products	Sesame Seed Exporter		12.00%		0.0	%	3/31/2016		1,000,000		2,000,000		1,000,000		1,000,000		0.7	%
Kenya	Other Investments	Cash Grains	Rice Importer		11.33%		0.0	%	2/18/2016		375,182		1,000,000		375,182		375,182		0.3	%
Namibia	Other Investments	Packaged Foods & Meats	Consumer Goods Distributor		12.00%		0.0	%	3/03/16		1,000,000		2,000,000		1,000,000		1,000,000		0.7	%
Singapore	Export Trading Group Pte. Ltd. (7)	Agricultural Products	Agricultural Products Exporter		11.50%		0.0	%	2/7/2016		10,000,000		10,000,000		10,000,000		10,000,000		7.2	%
South Africa	Other Investments	Communications equipment	Electronics Assembler		13.00%		0.0	%	1/29/16 - 4/15/16		5,918,086		11,000,000		5,918,086		5,918,086		4.3	%
South Africa	Other Investments	Meat, Poultry & Fish	Meat Processor		14.50%		0.0	%	12/22/15 - 1/31/16		2,524,816		4,300,000		2,524,816		2,524,816		1.8	%
South Africa	Other Investments (9)	Food Products	Fruit & Nut Distributor		17.50%		0.0	%	5/22/2015		667,838		1,250,000		667,838		667,838		0.5	%
South Africa	Other Investments	Textiles, Apparel & Luxury Goods	Textile Distributor		15.00%		0.0	%	1/13/16 - 2/11/16		724,219		2,500,000		724,219		724,219		0.5	%
South Africa	Other Investments	Construction Materials	Construction Materials Distributor		12.75%		0.0	%	7/1/2015		181,943		750,000		181,943		181,943		0.1	%
South Africa	Other Investments	Metals & Mining	Mine Remediation Company		17.50%		0.0	%	6/15/16 - 8/15/16		2,500,000		2,500,000		2,500,000		2,500,000		1.8	%
South Africa	Other Investments	Agricultural Products	Agricultural Supplies Distributor		10.38%		0.0	%	1/14/2016		5,071,000		10,000,000		5,071,000		5,071,000		3.7	%
South Africa	Other Investments	Fertilizer & Agricultural Chemicals	Farm Supplies Wholesaler		12.50%		0.0	%	10/17/15 - 12/03/15		1,250,000		1,500,000		1,250,000		1,250,000		0.9	%
Tanzania	Other Investments	Cash Grains	Rice Producer		11.50%		0.0	%	10/26/2015		3,900,000		3,900,000		3,900,000		3,900,000		2.8	%
Zambia	Other Investments	Fertilizer & Agricultural Chemicals	Farm Supplies Distributor	12.08%-12.50%			0.0	%	10/25/2015		4,500,000		10,000,000		4,500,000		4,500,000		3.2	%
Zambia	Other Investments	Primary Metal Industries	Integrated Steel Producer		13.00%		0.0	%	2/14/2016		6,000,000		6,000,000		6,000,000		6,000,000		4.3	%
Total Senior Secured Trade Finance Participations															77,069,328		77,069,328		55.6	%
Total Investments														$	101,346,528	$	101,028,104

See accompanying notes to the consolidated financial statements.

¹	Refer to Notes 3 and 4 of the consolidated financial statements for additional information on the Company’s investments.

²	Fees may include upfront, origination, commitment, facility and/or other fees that the borrower must contractually pay to the Company. Fees, if any, are typically received in connection with term loan transactions and are rarely applicable to trade finance transactions.

⁴	Loan commitments are subject to the availability of funds and do not represent a contractual obligation to provide funding to the borrower.

⁵	Interest accruing includes 2.5% of deferred interest due at maturity.

₆	Interest includes 5.0% of penalty interest due to the borrower missing eight interest payments. This investment was on non-accrual status as of December 31, 2015. See Note 3.

₇	The transaction is secured by specific collateral held by the borrower’s subsidiaries in Kenya, Tanzania, and Zambia.

₈	Interest accrues at a variable rate of one-month Libor + 10.5%, which is paid currently, and also includes 4.68% of deferred interest due at maturity.

₉	The Company, together with its Sub-Advisor, have agreed to extend the principal maturity date to facilitate the strategic sale of this borrower. The borrower has been experiencing some cash flow difficulties but has made some partial payments of principal.

TRILINC GLOBAL IMPACT FUND, LLC

Notes to Consolidated Financial Statements

June 30, 2016

(Unaudited)

Note 1. Organization and Operations of the Company

TriLinc Global Impact Fund, LLC (the “Company”) was organized as a Delaware limited liability company on April 30, 2012 and formally commenced operations on June 11, 2013. The Company makes impact investments in Small and Medium Enterprises, known as SMEs, primarily in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. The Company uses the proceeds raised from the issuance of units to invest in SMEs through local market sub-advisors in a diversified portfolio of financial assets, including direct loans, convertible debt instruments, trade finance, structured credit and preferred and common equity investments. The Company’s investment objectives are to generate current income, capital preservation and modest capital appreciation primarily through investments in SMEs. The Company is externally managed by TriLinc Advisors, LLC (the “Advisor”). The Advisor is an investment advisor registered with the SEC.

TriLinc Global, LLC (the “Sponsor”) owns 85% of the units of the Advisor, and is the sponsor of the Company. Strategic Capital Advisory Services, LLC (“SCAS”) owns 15% of the Advisor, and is considered an affiliate of the Company. The Sponsor employs staff who operate both the Advisor and the Company. The Sponsor, the Advisor and SCAS are Delaware limited liability companies.

In May 2012, the Advisor purchased 22,161 Class A units for aggregate gross proceeds of $200,000. The Company commenced its initial public offering of up to $1.5 billion in units of limited liability company interest (the “Offering”) on February 25, 2013. On June 11, 2013, the Company satisfied its minimum offering requirement of $2,000,000 when the Sponsor purchased 321,330 Class A units for aggregate gross proceeds of $2,900,000 and the Company commenced operations. In February 2015, the Company elected to extend its current offering period for up to an additional one year period, expiring on February 25, 2016. On November 18, 2015, the Company elected to extend its current offering for up to an additional six month period, expiring August 25, 2016. On February 19, 2016, the Company elected to further extend its current offering to December 31, 2016. Our board has the right to further extend or terminate the Offering at any time.

Although the Company was organized and intends to conduct its business in a manner so that it is not required to register as an investment company under the Investment Company Act of 1940, as amended, the consolidated financial statements are prepared using the specialized accounting principles of the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies. Overall, the Company’s management believes the use of investment company accounting makes the Company’s financial statements more useful to investors and other financial statement users since it allows a more appropriate basis of comparison to other entities with similar objectives.

To assist the Company in achieving its investment objective, the Company makes investments via wholly owned subsidiaries, all of which are Cayman Islands exempted companies. As of June 30, 2016, the Company’s subsidiaries are as follows:

TriLinc Global Impact Fund – Asia, Ltd.

TriLinc Global Impact Fund – Latin America, Ltd.

TriLinc Global Impact Fund – Trade Finance, Ltd.

TriLinc Global Impact Fund – African Trade Finance, Ltd.

TriLinc Global Impact Fund – Africa, Ltd.

TriLinc Global Impact Fund – Latin America II, Ltd.

TriLinc Global Impact Fund – African Trade Finance II, Ltd.

TriLinc Global Impact Fund – Latin America III, Ltd.

TriLinc Global Impact Fund – Asia II, Ltd.

Through June 30, 2016, the Company has made, through its subsidiaries, loans in several countries located in South America, Asia Africa, and Europe.

Note 2. Significant Accounting Policies

Basis of Presentation

The Company’s financial information is prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company follows the accounting and reporting guidance in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946 — Financial Services, Investment Companies (“ASC 946”). The

preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These financial statements are presented in United States dollars, which is the functional and reporting currency of the Company and all its subsidiaries.

The interim consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP is not required for interim reporting purposes and has been omitted herein. These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the Securities and Exchange Commission (“SEC”) on March 30, 2016.

The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that ultimately may be achieved for the full year ending December 31, 2016.

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, which were established to hold certain investments of the Company. The Company owns 100% of each subsidiary and, as such, the subsidiaries are consolidated into the Company’s consolidated financial statements. Transactions between subsidiaries, to the extent they occur, are eliminated in consolidation. The consolidated financial statements reflect all adjustments, consisting solely of normal recurring accruals, that, in the opinion of management, are necessary for the fair presentation of the results of the operations and financial condition as of and for the periods presented.

Certain prior year amounts have been reclassified to conform to the current year presentation.

Cash

Cash consists of demand deposits at a financial institution. Such deposits may be in excess of the Federal Deposit Insurance Corporation insurance limits. The Company considers the credit risk of this financial institution to be remote and has not experienced and does not expect to experience any losses in any such accounts.

Prepaid expenses

Prepaid expenses represent prepaid insurance paid by the Company during 2015. Prepaid insurance is being amortized over the term of the insurance policy which is one year. The amortization of prepaid expenses for the three and six months ended June 30, 2016 and 2015 is reimbursable to the Company by the Sponsor under the Amended and Restated Operating Expense Responsibility Agreement.

Revenue Recognition

The Company records interest income on an accrual basis to the extent that the Company expects to collect such amounts. The Company does not accrue as a receivable interest on loans for accounting purposes if there is reason to doubt the ability to collect such interest. Structuring, upfront and similar fees are recorded as a discount on investments purchased and are accreted into interest income, on a straight line basis, which the Company has determined not to be materially different from the effective yield method.

The Company records prepayment fees for loans and debt securities paid back to the Company prior to the maturity date as income upon receipt.

The Company generally places loans on non-accrual status when principal and interest are past due 90 days or more or when there is a reasonable doubt that principal or interest will be collected. If, however, management believes the principal and interest will be collected, a loan may be left on accrual status during the period the Company is pursuing repayment of the loan, Accrued interest is generally reversed when a loan is placed on non-accrual. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment of the financial condition of the borrower. Non-accrual loans are generally restored to accrual status when past due principal and interest is paid and, in the Company’s management’s judgment, is likely to remain current over the remainder of the term. At June 30, 2016, two portfolio companies were on non-accrual status with an aggregate fair value of $3,427,842 or 2.1% of the fair value of the Company’s total investments. Interest income not recorded relative to the original terms of the loans to the two companies on non-accrual status amounted to approximately $161,700 and $304,400, respectively, for the three and six months ended June 30, 2016.

Valuation of Investments

The Company applies fair value accounting to all of its investments in accordance with ASC Topic 820, Fair Value Measurement (“ASC 820”). ASC 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC 820, fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with ASC 820, the Company has categorized its investments into a three-level fair value hierarchy as discussed in Note 4.

ASC 820 establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:

Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 — Valuations based on inputs other than quoted prices included in Level 1, which are either directly or indirectly observable.

Level 3 — Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date. The inputs for the determination of fair value may require significant management judgment or estimation and is based upon management’s assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the market or income approach and may involve pricing models whose inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates and earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. The information may also include pricing information or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. Certain investments may be valued based upon estimated value of underlying collateral and include adjustments deemed necessary for estimates of costs to obtain control and liquidate available collateral. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence.

The inputs used in the determination of fair value may require significant judgment or estimation.

Investments for which market quotations are readily available are valued at those quotations. Most of the Company’s investments are loans to private companies, which are not actively traded in any market and for which quotations are not available. For those investments for which market quotations are not readily available, or when such market quotations are deemed by the Advisor not to represent fair value, the Company’s board of managers has approved a multi-step valuation process to be followed each fiscal quarter, as described below:

Each investment is valued by the Advisor in collaboration with the relevant sub-advisor;

For all investments with a maturity of greater than 12 months, the Company has engaged Duff & Phelps, LLC (“Duff & Phelps”) to conduct a review on the reasonableness of the Company’s internal estimates of fair value on each asset on a quarterly rotating basis, with each of such investments being reviewed at least annually, and provide an opinion that the Advisor’s estimate of fair value for each investment is reasonable;

The audit committee of the Company’s board of managers reviews and discusses the preliminary valuation prepared by the Advisor and any opinion rendered by Duff & Phelps; and

The board of managers discusses the valuations and determines the fair value of each investment in the Company’s portfolio in good faith based on the input of the Advisor, Duff & Phelps and the audit committee. The board of managers is ultimately responsible for the determination, in good faith, of the fair value of each investment.

Below is a description of factors that the Company’s board of managers may consider when valuing the Company’s investments.

Fixed income investments are typically valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including the sale of a business). The income approach uses valuation techniques to convert future amounts (for example, interest and principal payments) to a single present value amount (discounted) calculated based on an appropriate discount rate. The measurement is based on the net present value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that the Company may take into account in valuing the Company’s investments include, as applicable: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the borrower’s ability to make payments, its earnings and discounted cash flows, the markets in which the company does business, comparisons of financial ratios of peer companies that are public, the principal market for the borrower’s securities and an estimate of the borrower’s enterprise value, among other factors.

The Company may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. The Company may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors the Company deems relevant in measuring the fair values of the Company’s investments.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation on Investments

The Company measures net realized gains or losses by the difference between the net proceeds from the repayment or sale on investments and the amortized cost basis of the investment including unamortized upfront fees and prepayment penalties. Realized gains or losses on the disposition of an investment are calculated using the first in first out (FIFO) method, utilizing the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

Payment-in-Kind Interest

The Company may have investments that contain a payment-in-kind, or PIK, interest provision. For loans with contractual PIK interest, any interest will be added to the principal balance of such investments and be recorded as income, if the valuation indicates that such interest is collectible.

Distribution Fee and Out-of-Period Adjustment

The Company pays a distribution fee equal to 0.8% per annum of the Company’s current estimated value per share for each Class C unit sold in the Offering. The aggregate amount of underwriting compensation for the Class A, Class C and Class I units, including the distribution fee for the Class C units, cannot exceed the Financial Industry Regulatory Authority’s 10% cap on underwriting compensation. The distribution fee is not paid at the time of purchase. The distribution fee is payable monthly in arrears, as it becomes contractually due.

In prior periods, the Company has been recording the fees as a periodic charge to equity as they are incurred. Starting in the three months period ended June 30, 2016, the Company has determined to account for the fees as a charge to equity at the time each Class C unit is sold in its Offering and record a corresponding liability for the estimated amount to be paid in future periods. At June 30, 2016, the estimated unpaid distribution fee amounts to $1,331,000. The adjustments for the amounts of distribution fees which were not previously recorded as a liability amounted to approximately $812,000 and $366,000, respectively, as of March 31, 2016 and December 31, 2015 and were deemed immaterial.

Income Taxes

The Company, as a limited liability company, allocates all income or loss to its unitholders according to their respective percentage of ownership. Therefore, no provision for federal or state income taxes has been included in these financial statements.

The Company may be subject to withholding taxes on income and capital gains imposed by certain countries in which the Company invests. The withholding tax on income is netted against the income accrued or received. Any reclaimable taxes are recorded as income. The withholding tax on realized or unrealized gain is recorded as a liability.

The Company follows the guidance for uncertainty in income taxes included in the ASC 740, Income Taxes. This guidance requires the Company to determine whether a tax position of the Company is more likely than not to be sustained upon examination

by the applicable taxing authority, including the resolution of any related appeals or litigation processes, based on the technical merits of the position.

As of June 30, 2016, no tax liability for uncertain tax provision had been recognized in the accompanying financial statements nor did the Company recognize any interest and penalties related to unrecognized tax benefits. The earliest year that the Company’s income tax returns are subject to examination is the period ending December 31, 2012.

Unitholders are individually responsible for reporting income or loss, to the extent required by the federal and state income tax laws and regulations, based upon their respective share of the Company’s income and expense as reported for income tax purposes.

Calculation of Net Asset Value

The Company’s net asset value is calculated on a quarterly basis and commenced with respect to the first full quarter after the Company commenced operations. The Company calculates its net asset value per unit by subtracting total liabilities from the total value of the Company’s assets on the date of valuation and dividing the result by the total number of outstanding units on the date of valuation. The net asset value per Class A, Class C and Class I units are calculated on a pro-rata basis based on units outstanding.

Net Income (Loss) per Unit

Basic net income (loss) per unit is computed by dividing net income (loss) by the weighted average number of members’ units outstanding during the period. Diluted net income or loss per unit is computed by dividing net income (loss) by the weighted average number of members’ units and members’ unit equivalents outstanding during the period. The Company did not have any potentially dilutive units outstanding at June 30, 2016 and 2015.

Organization and Offering Costs

The Sponsor has incurred organization and offering costs on behalf of the Company. Organization and offering costs are reimbursable to the Sponsor to the extent the aggregate of selling commissions, dealer manager fees and other organization and offering costs do not exceed 15.0% of the gross offering proceeds (the “O&O Reimbursement Limit”) raised from the offering and will be accrued and payable by the Company only to the extent that such costs do not exceed the O&O Reimbursement Limit. Reimbursement of organization and offering costs that exceed the O&O Reimbursement Limit will be expensed in the period they become reimbursable, which is dependent on the gross offering proceeds raised in such period, and are therefore not included on the Statements of Assets and Liabilities as of June 30, 2016 and December 31, 2015. These expense reimbursements are subject to regulatory caps and approval by the Company’s board of managers. If the Company sells the maximum amount of the Offering, it anticipates that such expenses will equal approximately 1.25% of the gross proceeds raised. However, such expenses are likely to exceed this percentage because the Offering is now due to terminate on December 31, 2016. Through June 30, 2016, such expenses equaled to 5% of the gross proceeds. Reimbursements to the Sponsor are included as a reduction to net assets on the Consolidated Statement of Changes in Net Assets.

The Company may reimburse the dealer manager for certain expenses that are deemed underwriting compensation. Assuming an aggregate selling commission and a dealer manager fee of 9.75% of the gross offering proceeds (which assumes all offering proceeds come from Class A units), the Company would reimburse the dealer manager in an amount up to 0.25% of the gross offering proceeds. Because the aggregate selling commission and dealer manager fees will be less than 9.75% of the gross offering proceeds due to a portion of the offering proceeds coming from the sale of Class C and Class I units, the Company may reimburse the dealer manager for expenses in an amount greater than 0.25% of the gross offering proceeds, provided that the Company will not pay or reimburse any of the foregoing costs to the extent such payment would cause total underwriting compensation to exceed 10.0% of the gross proceeds of the primary offering as of the termination of the Offering, as required by the rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”).

Operating Expense Responsibility Agreement

On August 11, 2016, the Company, Advisor and the Sponsor entered into an Amended and Restated Operating Expense Responsibility Agreement (“Responsibility Agreement”) originally effective as of June 11, 2013 and covering expenses through June 30, 2016. Since the inception of the Company through June 30, 2016, pursuant to the terms of the Responsibility Agreement, the Sponsor has paid approximately $7,697,700 of operating expenses, management fees, and incentive fees on behalf of the Company and will pay or reimburse to the Company an additional $2,916,500 of expenses, which have been accrued by the Sponsor as of June 30, 2016. Such expenses may not be reimbursable to the Sponsor until the Company has raised $200 million of gross proceeds in the primary offering and such reimbursement does not cause the Company’s net asset value per unit to fall below the prior quarter’s net asset value per unit (the “Gross Proceeds Hurdle”). To the extent the Company does not meet the Gross Proceeds Hurdle in any quarter, no amount will be payable by the Company for reimbursement to the Sponsor. While the Company has raised over $200

million of gross proceeds in the primary offering as of June 30, 2016, the Company has not met the Gross Proceeds Hurdle for the quarter ended June 30, 2016 because any reimbursement would have caused the Company’s net assets value per unit to fall below the prior quarter. Therefore, expenses of the Company covered by the Responsibility Agreement have not been recorded as expenses of the Company as of June 30, 2016. In accordance with ASC 450, Contingencies, such expenses will be accrued and payable by the Company in the period that they become both probable and estimable.

Recently Issued Accounting Pronouncements

Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay the adoption of new or revised accounting standards until such time as those standards apply to private companies. The Company is choosing to take advantage of the extended transition period for complying with new or revised accounting standards. As a result, the Company’s financial statements may not be comparable to those of companies that comply with public company effective dates. There are no new or revised accounting standards that the Company has not adopted.

In June 2013, the FASB issued ASU 2013-08, Financial Services—Investment Companies: Amendments to the Scope, Measurement, and Disclosure Requirements (“ASU 2013-08”). ASU 2013-08 amends the current criteria for an entity to qualify as an investment company, creates new disclosure requirements and amends the measurement criteria for certain interests in other investment companies. ASU 2013-08 was effective on January 1, 2014, and did not have a material effect on the Company’s consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The update supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the implementation of this standard by one year. ASU 2014-09 is now effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. The adoption of the amended guidance in ASU 2014-09 is not expected to have a significant effect on the Company’s financial statements.

Risk Factors

The Company has limited operating history and is subject to the business risks and uncertainties associated with any new business. As an externally-managed Company, the Company is largely dependent on the efforts of the Advisor and other service providers and is dependent on the Sponsor for financial support.

The Company is subject to financial market risks, including changes in interest rates. Global economies and capital markets can and have experienced significant volatility, which has increased the risks associated with investments in collateralized private debt instruments. Investment in the Company carries risk and there are no guarantees that the Company’s investment objectives will be achieved. The Company is also exposed to credit risk related to maintaining all of its cash at a major financial institution.

The Company’s investments consist of loans, loan participations and trade finance that are illiquid and non-traded, making purchase or sale of such financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

The value of the Company’s investments in loans may be detrimentally affected to the extent, among other things, that a borrower defaults on its obligations, there is insufficient collateral securing the loan and/or there are extensive legal and other costs incurred in collecting on a defaulted loan, observable secondary or primary market yields for similar instruments issued by comparable companies increase materially or risk premiums required in the market between smaller companies, such as the Company’s borrowers, and those for which market yields are observable increase materially. In addition, as of June 30, 2016, all the Company’s investment are denominated in U.S. dollars. If the U.S. dollar rises, it may become more difficult for borrowers to make loan payments if the borrowers are operating in markets where the local currencies are depreciating relative the U.S. dollar.

At June 30, 2016, the Company’s investment portfolio included 27 companies and was comprised of $9,470,380 or 5.8% in a senior secured term loan, $40,137,329 or 24.8% in senior secured term loan participations, $92,324,782 or 57.0% in senior secured trade finance participations, and $20,000,000 or 12.4% in a short term note and a bridge loan. The Company’s largest loan by value was $17,000,000 or 10.5% of total investments. The Company’s 5 largest loans by value comprised 44.0% of the Company’s portfolio at June 30, 2016. Participation in loans amounted to 81.8% of the Company’s total portfolio at June 30, 2016.

Note 3. Investments

As of June 30, 2016, the Company’s investments consisted of the following:

	Amortized		Fair		Percentage
	Cost		Value		of Total
Senior secured term loan	$	9,470,380	$	9,470,380		5.8	%
Senior secured term loan participations		40,455,753		40,137,329		24.8	%
Senior secured trade finance participations		92,383,859		92,324,782		57.0	%
Short term note and bridge loan		20,000,000		20,000,000		12.4	%
Total investments	$	162,309,992	$	161,932,491		100.0	%

Participations

The majority of the Company’s investments are in the form of Participation Interests (“Participations”). Participations are interests, which may be divided or undivided, in financing facilities. Participations may be interests in one specific loan or trade finance transaction, several loans or trade finance transactions under a facility, or may be interests in an entire facility. The Company’s rights under Participations include, without limitations, all corresponding rights in payments, collaterals, guaranties, and any other security interests obtained in the underlying financing facilities.

Interest Receivable

Depending on the specific terms of the Company’s investments, interest earned by the Company is payable either monthly, quarterly, or, in the case of most trade finance investments, at maturity. As such, some of the Company’s trade finance investments have up to 300 days of accrued interest receivable as of June 30, 2016. In addition, certain of the Company’s investment in term loans accrue deferred interest which is not payable until the maturity of the loans. Accrued deferred interest included in the interest receivable balance as of June 30, 2016 and December 31, 2015 amounted to $735,324 and $393,430, respectively. The Company’s interest receivable balances at June 30, 2016 and December 31, 2015 are recorded at the amounts that the Company expects to collect.

Trade Finance

Trade finance encompasses a variety of lending structures that support the export, import or sale of goods between producers and buyers in various countries and across various jurisdictions. The strategy is most prevalent in the financing of commodities. The Company’s trade finance position typically fall into two broad categories: Pre-export financing and receivable/inventory financing. Pre-export financing represent advances to borrower based on proven orders from buyers. For trade finance, the structure and terms vary according to the nature of the transaction being financed. The structure can take the form of a revolver (up to one year) with draw requests with maturity up to one year based on collateral and performance requirements. The structure can also be specific to the individual transaction being financed, which typically have shorter duration of 60 – 180 days. In terms of underwriting, particular consideration is given to the following:

nature of the goods or transaction being financed,

the terms associated with the sale and repayment of the goods,

the execution risk associated with producing, storing and shipment of the goods,

the financial and performance profile of both the borrower and end buyer(s),

the underlying advance rate and subsequent LTV associated with lending against the goods that serve to secure the facility or transaction,

collateral and financial controls (collection accounts and inventory possession),

third party inspections and insurance, and

the region, country or jurisdiction in which the financing is being completed.

Collateral varies by transaction, but is typically raw or finished goods inventory, and/or receivables. In the case of pre-export finance, the transaction is secured by purchase orders from buyers or offtake contracts, which are agreements between a buyer and seller to purchase/sell a future product.

Terms depend on the nature of the facility or transaction being financed. As such, they depend on the credit profile of the underlying financing, as well as the speed and detail associated with the request for financing. Interest can be paid as often as monthly or quarterly on revolving facilities (one year in duration) or at maturity when dealing with specific transactions with shorter duration, which is the case for the majority of the Company’s trade finance positions. At times, settlement can be delayed due to documentation, shipment, transportation or port clearing issues, delays associated with the end buyer or off-taker assuming possession, possible

changes to contract or offtake terms, and the aggregation of settlement of multiple individual transactions. Conversely, at times payments are made ahead of schedule as transactions either clear faster than expected, borrowers decide to prepay or pay down ahead of schedule, counterparties clear multiple individual transactions in one settlement, or less expensive financing is secured by the borrower.

On occasion, the Company may receive notice that a borrower or counterparty intends to pay ahead of schedule or in one lump sum (settling multiple draw requests all at once). Depending on timing and the ability to redeploy these funds, combined with projected inflows of fund capital, these outsize payments can negatively impact the Company’s performance. In these situations, the credit profile of the borrower, and the transaction in general, is reviewed with the sub-advisor and a request may be made to either stagger payments, where at all possible, or request that payment only be made at the end of that specific financial quarter. These requests or accommodations, which happen very rarely, will only be made where the Company has strong comfort in and around the credit profile of the transaction or borrower.

Prodesa

During 2014, the Company restructured two loans with one of its borrowers, Corporacion Prodesa S.R.L. (“Prodesa”). As of June 30, 2016, the Company’s investment in Prodesa is comprised of two senior secured term loan participations with an aggregate balance of $2,350,000 and a $950,000 senior secured purchase order revolving credit facility with a balance of $900,000. Prodesa did not timely make the payments that were due in March and April 2015 under the two loans due to economic difficulties. The Company has been working with Prodesa to remedy the default and bring the loans to a current status. On May 6, 2015, the Company entered into a short term forbearance agreement (the “Forbearance Agreement”) with Prodesa to provide Prodesa with temporary loan payment relief while a longer term plan is negotiated. Under the terms of the Forbearance Agreement, the Company agreed to accept partial interest payments, amounting to 50% of the required interest payments, for the months of March 2015 to December 2015. The unpaid interest will be included as part of the longer term plan. Through October 2015, Prodesa had made all interest payments required under the Forbearance Agreement. Interest payments required under the term loans for the months subsequent to October 2015 had not been made by Prodesa due to Prodesa being placed into bankruptcy in November 2015 as described further below. Now that Prodesa has exited the bankruptcy process, Prodesa can once again make interest payments. During July and August 2016, the Company has received $121,894 in interest payments from Prodesa. Accordingly, the Company is still accruing interest, which amounted to approximately $499,400 as of June 30, 2016, on the Prodesa loans. In addition, the Company is currently working on amending the term loans, and expects that Prodesa will start making regular principal payments starting in August 2016. The Company has estimated the fair value of the Prodesa loans as of June 30, 2016 at $3,250,000 based on the income valuation approach as further described in Note 4.

During 2015, Prodesa underwent a change in ownership. Through the month of September 2015, the new ownership had injected over $830,000 in Prodesa for working capital purposes. The Company has been working with Prodesa to re-align its operations and, on October 5, 2015, the Company funded a $400,000 senior secured purchase order revolving credit facility to Prodesa. The purchase order facility is secured by specific purchase orders from customers of Prodesa, as well as pledges of additional unencumbered assets and all shares of Prodesa. On November 6, 2015, Prodesa paid back to the Company the entire $400,000 and related interest owed under the purchase order facility. On November 20, 2015, the Company funded a second draw under the purchase order facility in the amount of $190,000 which was repaid in full on February 29, 2016. During the six months ended June 30, 2016, the Company funded four additional draws under the purchase order facility for an aggregate of $900,000.

On November 23, 2015, Prodesa was placed into bankruptcy by the Peruvian bankruptcy authority. At the end of August 2015, a supplier of Prodesa had filed an unpaid payable claim for just over $141,000 with the authority. While Prodesa’s management responded to the filing with a proposal to pay the claim off in full by December 2015, Prodesa’s counsel did not follow the necessary filing protocol. Unknown to management, this failure triggered Prodesa being placed into bankruptcy. Prodesa’s counsel has since been replaced. During the filing, the Company and all key creditors and vendors continued to support Prodesa as usual and the initial $141,000 claim has been settled in full. Prodesa exited the bankruptcy process on April 22, 2016 and made a principal payment to the Company of $400,000 on April 29, 2016.

Usivale

effective August 27, 2015, the date of the judicial recovery filing which is described further below. Interest not recorded relative to the original terms of the Usivale loans amounted to approximately $132,200 and $264,400, respectively for the three and six months ended June 30, 2016. The Company has estimated the fair value of the Usivale loans as of June 30, 2016 at $2,681,576, based on a discounted cash flow analysis (income approach), which is unchanged from the estimated fair value as of March 31, 2016 and December 31, 2015.

On August 27, 2015, Usivale filed for judicial recuperation or recovery (the “Filing”) with the local court in Brazil. The Filing was led by the ongoing pricing pressure within the sugar market, leading up to the material drop in the month of August, when prices reached a seven year low. The Filing provided for a 180 day “standstill” period relative to any claim for payment by Usivale’s creditors. During this period, Usivale was permitted to operate as usual, but was required to develop and present a recovery plan to its creditors to allow it to emerge from judicial recovery. Usivale submitted an initial plan to the judicial court for review at the end of November 2015, which was published by the court on January 19, 2016. Creditors had 30 days to review and either approve or reject the plan. As the only secured creditor within the greater credit group, the Company’s acceptance of any plan is required. On February 17, 2016, the Company filed a rejection of the plan presented by Usivale. In accordance with the judicial recovery process, a general assembly of Usivale’s creditors was held on June 14, 2016 and a restructure plan was submitted and approved. Under the restructure plan, which is in the process of being ratified by the court, interest on the principal will start accruing effective July 1, 2016 at an annual rate of 12.43% and Usivale will start making periodic principal payments in the fourth quarter of 2016. Since August of 2015, the price of sugar has significantly improved and as a result, Usivale’s cash flows should permit it to meet its payment requirements under the restructure.

Fruit and Nut Distributor

The Company has a trade finance participation with a fruit and nut distributor (“the Distributor”) located in South Africa, with a principal balance outstanding of $805,343 of as June 30, 2016. The Distributor trade finance has a stated maturity date of May 22, 2015, which the Company agreed to extend. The Distributor had made partial payments of principal during 2015 (the original loan from the Company to the Distributor was for $1,250,000), with the most recent payment being made on October 27, 2015. Through the latter part of 2015, the depreciation in the South African Rand has proven to be problematic for the Distributor given that it has to purchase its inventory in U.S. Dollars and then sells in South African Rand. This situation has led the Distributor to experience some cash flow difficulties and operating losses. As of March June 30, 2016, the Company, together with its sub-advisor, had agreed to extend further the principal maturity date to facilitate the strategic sale of the Distributor, which closed in June 2016. The Company had expected to restructure the loan as follows: Principal balance of $820,761, which includes capitalized accrued interest through January 31, 2016 amounting to $152,923; annual interest rate of 12% starting May 1, 2016; and repayment terms of five years. Accordingly, the Company placed this participation on non-accrual status effective February 1, 2016 and interest not recorded relative to the original terms of this participation amounted to approximately $29,500 and $40,000, respectively, for the three and six months ended June 30, 2016. Based on the information available to the Company and according to its valuation policies, the Company had estimated the fair value of its investment in the Distributor to be $761,684 as of March 31, 2016 and recorded an unrealized depreciation adjustment of $59,077 for the three months ended March 31, 2016 .

Although the Distributor was acquired in June 2016, the restructure of the loan has not been finalized. However, as of June 30, 2016, the Company still expects to restructure the loan as described above. In addition, the Distributor made payments to the Company totaling $15,418 during the three months ended June 30, 2016. Accordingly, in addition to decreasing the principal outstanding by this amount, the Company also decreased the estimated fair value by $15,418 to $746,266 as of June 30, 2016.

Farm Supplies Distributor

The company has several trade finance participations in a facility to a farm supplies distributor, Neria Investment Ltd. (“Neria”), located in Zambia with an aggregate principal balance of $5,078,526 and accrued interest of $1,100,739 as of June 30, 2016. The participations have maturity dates ranging from October 25, 2015 to May 3, 2016. The facility serves to finance the shipment of fertilizer to the Zambian government and is secured by receivables. The delay in repayment is due to slow payment of the receivables by the Zambian Government caused by a national budget deficit. The Company has determined that there is sufficient collateral, including an insurance policy should Neria not pay, to cover the entire balance due from Neria and has determined, in accordance with its valuation policy, that the fair value should remain at $5,078,526 as of June 30, 2016.

Sesame Seed Exporter

Exporter made an interest payment of $9,667 during July 2016. The Company has determined that there is sufficient collateral to support the repayment of this participation and has determined, in accordance with its valuation policy, that the fair value of this investment should remain at $1,000,000 as of June 30, 2016.

As of December 31, 2015, the Company’s investments consisted of the following:

	Amortized		Fair		Percentage
	Cost		Value		of Total
Senior secured term loan	$	5,474,534	$	5,474,534		5.4	%
Senior secured term loan participations		18,802,666		18,484,242		18.3	%
Senior secured trade finance participations		77,069,328		77,069,328		76.3	%
Total investments	$	101,346,528	$	101,028,104		100.0	%

The industry composition of the Company’s portfolio, at fair market value as of June 30, 2016 and December 31, 2015, was as follows:

	As of June 30, 2016					As of December 31, 2015
	Fair		Percentage			Fair		Percentage
Industry	Value		of Total			Value		of Total
Agricultural Products	$	32,681,576		20.1	%	$	27,452,576		27.2	%
Cash Grains		—		—			4,275,182		4.2	%
Coal and Other Minerals and Ores		3,853,428		2.4	%		—		—
Commercial Fishing		611,529		0.4	%		1,756,243		1.7	%
Communications Equipment		4,994,532		3.1	%		5,918,086		5.9	%
Construction Materials		—		—			181,943		0.2	%
Consumer Products		9,250,000		5.7	%		8,940,000		8.8	%
Electric Services		11,500,000		7.1	%		—		—
Farm Products		3,356,322		2.1	%		2,900,000		2.9	%
Fats and Oils		6,000,000		3.7	%		3,100,000		3.1	%
Financial Services		15,000,000		9.3	%		—		—
Fertilizer & Agricultural Chemicals		5,078,526		3.1	%		5,750,000		5.7	%
Fresh or Frozen Packaged Fish		3,000,000		1.9	%		—		—
Food Products		746,266		0.5	%		667,838		0.7	%
Hotels and Motels		17,000,000		10.5	%		—		—
Lumber and Other Construction Materials		4,284,308		2.6	%		—		—
Meat, Poultry & Fish		8,649,871		5.3	%		11,524,816		11.4	%
Metals & Mining		2,500,000		1.5	%		2,500,000		2.5	%
Packaged Foods & Meats		750,000		0.5	%		1,000,000		1.0	%
Primary Nonferrous Metals		3,000,000		1.9	%		—		—
Primary Metal Industries		6,000,000		3.7	%		6,000,000		5.9	%
Programing and Data Processing		6,470,380		4.0	%		5,474,534		5.4	%
Rental of Railroad Cars		4,570,621		2.8	%		—		—
Textiles, Apparel & Luxury Goods		—		—			724,219		0.7	%
Water Transportation		12,635,132		7.8	%		12,862,666		12.7	%
Total	$	161,932,491		100.0	%	$	101,028,104		100.0	%

The table below shows the portfolio composition by geographic classification at fair value as of June 30, 2016 and December 31, 2015:

	As of June 30, 2016					As of December 31, 2015
	Fair		Percentage			Fair		Percentage
Country	Value		of Total			Value		of Total
Argentina	$	34,500,000		21.2	%	$	27,800,000		27.5	%
Brazil		9,151,957		5.7	%		8,156,110		8.1	%
Cabo Verde		17,000,000		10.5	%		—		—
Chile		2,356,322		1.5	%		1,900,000		1.9	%
Ecuador		3,611,529		2.2	%		1,756,243		1.7	%
Ghana		11,500,000		7.1	%		—		—
Guatemala		1,000,000		0.6	%		1,000,000		1.0	%
Indonesia		3,000,000		1.9	%		—		—
Italy		4,284,308		2.6	%		—		—
Kenya		—		—			375,182		0.4	%
Mauritius		15,000,000		9.3	%		—		—
Namibia		750,000		0.5	%		1,000,000		1.0	%
Nigeria		12,635,132		7.8	%		12,862,666		12.7	%
Peru		3,250,000		2.0	%		2,940,000		2.9	%
Singapore		15,000,000		9.3	%		10,000,000		9.9	%
South Africa		13,961,289		8.6	%		18,837,902		18.6	%
Tanzania		—		—			3,900,000		3.9	%
United Kingdom		3,853,428		2.4	%		—		—
Zambia		11,078,526		6.8	%		10,500,000		10.4	%
Total	$	161,932,491		100.0	%	$	101,028,104		100.0	%

Note 4. Fair Value Measurements

The following table summarizes the valuation of the Company’s investments by the fair value hierarchy levels required under ASC 820 as of June 30, 2016:

	Fair
	Value		Level 1		Level 2		Level 3
Senior secured term loan	$	9,470,380	$	—	$	—	$	9,470,380
Senior secured term loan participations		40,137,329		—		—		40,137,329
Senior secured trade finance participations		92,324,782		—		—		92,324,782
Short term note and bridge loan		20,000,000						20,000,000
Total	$	161,932,491	$	—	$	—	$	161,932,491

The following table summarizes the valuation of the Company’s investments by the fair value hierarchy levels required under ASC 820 as of December 31, 2015:

	Fair
	Value		Level 1		Level 2		Level 3
Senior secured term loan	$	5,474,534	$	—	$	—	$	5,474,534
Senior secured term loan participations	$	18,484,242						18,484,242
Senior secured trade finance participations		77,069,328		—		—		77,069,328
Total	$	101,028,104	$	—	$	—	$	101,028,104

The following is a reconciliation of activity for the six months ended June 30, 2016, of investments classified as Level 3:

	Fair Value at December 31, 2015		Purchases		Maturities or Prepayments			Amortization		Net change in unrealized appreciation (depreciation)			Fair Value at June 30, 2016
Senior secured term loan	$	5,474,534	$	4,415,624	$	(428,246	)	$	8,468	$	—		$	9,470,380
Senior secured term loan participations		18,484,242		22,470,619		(827,532	)		10,000		—			40,137,329
Senior secured trade finance participations		77,069,328		70,580,814		(55,266,283	)		—		(59,077	)		92,324,782
Short term note and bridge loan		—		20,000,000		—			—		—			20,000,000
Total	$	101,028,104	$	117,467,057	$	(56,522,061	)	$	18,468	$	(59,077	)	$	161,932,491

There were no realized gains or losses for any of the Company’s investments classified as Level 3 during the three and six months ended June 30, 2016 and 2015.

As of June 30, 2016, all of the Company’s portfolio investments utilized Level 3 inputs. The following table presents the quantitative information about Level 3 fair value measurements of the Company’s investments as of June 30, 2016:

Fair value

Valuation technique

Unobservable input

Range (weighted average)

Senior secured trade finance participations (1)

91,578,516

Cost Approach

Recent transactions

N/A

Senior secured trade finance participations (2)

746,266

Income approach (DCF)

Market yield

15.75%

Senior secured term loan

9,470,380

Income approach (DCF)

Market yield

13.50%

Senior secured term loan participations (3)

40,137,329

Income approach (DCF)

Market yield

15.83% - 17.43% (15.85%)

Short term note and bridge loan (4)

20,000,000

N/A

(1)

Given the short duration (less than one year) and nature of trade finance positions, the Company uses the cost approach to determine the fair value of trade finance positions, unless circumstances would indicate that another approach would be more appropriate.

(2)

Income approach used for the Fruit and Nut Distributor based on expected terms as listed in Note 3 above.

(3)

As of June 30, 2016, with respect to the loans to Prodesa, the Company has returned to using an income approach to estimate their fair value. As of December 31, 2015, the Company had chosen to determine their estimated fair value based on a collateral valuation approach. The Company’s decision to do so was not based upon a belief that the Company will need to liquidate the collateral securing the loans to Prodesa, but rather because the Company considered the collateral valuation approach to be the most appropriate due to the availability and reliability of inputs. The Company has recently conducted several onsite visits and interviews to corroborate the collateral and as such, continues to believe in the reliability of the collateral and its associated estimated value. In addition, the Company is working with Prodesa to re-align its operations and restructure the loans (see Note 3).

(4)

These temporary investments have maturities of less than 60 days and are carried at cost.

As of December 31, 2015, all of the Company’s portfolio investments utilized Level 3 inputs. The following table presents the quantitative information about Level 3 fair value measurements of the Company’s investments as of December 31, 2015:

Fair value

Valuation technique

Unobservable input

Range (weighted average)

Senior secured trade finance participations

77,069,328

Income approach

Market yield

8.89% – 17.50% (12.04%)

Senior secured term loan

5,474,534

Income approach

Market yield

13.50%

Senior secured term loan participations

15,544,242

Income approach

Market yield

15.83% - 17.43%(16.13%)

Senior secured term loan participations

2,940,000

Collateral based approach

Value of collateral

N/A

The significant unobservable Level 3 inputs used in the fair value measurement of the Company’s investments are market yields. Significant increases in market yields would result in significantly lower fair value measurements.

For details of the country-specific risk concentrations for the Company’s investments, refer to the Consolidated Schedule of Investments and Note 3.

Note 5. Related Parties

Agreements

Advisory Agreement

On February 19, 2016, the Company’s board of managers determined to extend the Amended and Restated Advisory Agreement, (the “Advisory Agreement”) effective March 24, 2016, for an additional one-year term.

Asset management fees payable to the Advisor are remitted quarterly in arrears and are equal to 0.50% (2.00% per annum) of Gross Asset Value, as defined in the Amended and Restated Advisory Agreement between the Company and the Advisor. Asset management fees are paid to the Advisor in exchange for fund management and administrative services. Although the Advisor manages, on the Company’s behalf, many of the risks associated with global investments in developing economies, management fees do not include the cost of any hedging instruments or insurance policies that may be required to appropriately manage the Company’s risk.

If certain financial goals are reached by the Company, the Company is required to pay the Advisor an incentive fee which is comprised of two parts: (i) a subordinated fee on net investment income and (ii) an incentive fee on capital gains. The subordinated incentive fee on income is calculated and payable quarterly in arrears and is based upon the Company’s pre-incentive fee net investment income for the immediately preceding quarter. No subordinated incentive fee is earned by the Advisor in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the quarterly preferred return rate of 1.50% (6.00% annualized) (the “Preferred Return”). In any quarter, all of the Company’s pre-incentive fee net investment income, if any, that exceeds the quarterly Preferred Return, but is less than or equal to 1.875% (7.50% annualized) at the end of the immediately preceding fiscal quarter, is payable to the Advisor. For any quarter in which the Company’s pre-incentive fee net investment income exceeds 1.875% on its net assets at the end of the immediately preceding fiscal quarter, the subordinated incentive fee on income equals 20% of the amount of the Company’s pre-incentive fee net investment income.

An incentive fee on capital gains will be earned on investments sold and shall be determined and payable to the Advisor in arrears as of the end of each calendar year. The incentive fee on capital gains is equal to 20% of the Company’s realized capital gains on a cumulative basis from inception, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fees on capital gains. The Company had no capital gains and therefore did not accrue an incentive fee on capital gains for the three and six months ended June 30, 2016 and 2015.

Transactions

As discussed in Note 2, for the three months ended June 30, 2016 and 2015, the Sponsor assumed responsibility for $1,203,324 and $627,668, respectively, of the Company’s operating expenses, management fees and incentive fees, which are deferred under the Responsibility Agreement. For the six months ended June 30, 2016 and 2015, the Sponsor assumed responsibility for $3,117,668 and $1,346,933 of the Company’s operating expenses, management fees and incentive fees.

For the three months ended June 30, 2016 and 2015, the Advisor earned $973,916 and $424,187, respectively, in management fees and $745,727 and $327,310, respectively, in incentive fees. For the six months ended June 30, 2016 and 2015, the Advisor earned $1,790,242 and $785,935, respectively, in management fees and $1,396,075 and $604,490, respectively, in incentive fees.

Since the inception of the Company through June 30, 2016, pursuant to the terms of the Responsibility Agreement, the Sponsor has paid approximately $7,697,700 of operating expenses, management fees, and incentive fees on behalf of the Company and will pay or reimburse to the Company an additional $2,916,500 of expenses, which have been accrued by the Sponsor as of June 30, 2016. Such expenses, in the aggregate of $10,614,200 since the Company’s inception, may be expensed and payable by the Company to the Sponsor once the Company has raised gross proceeds of $200 million in the primary offering and such reimbursement does not cause the Company’s net asset value per unit to fall below the prior quarter’s net asset value per unit, as further described in Note 2.

operating expenses which were paid by the Company, but, under the terms of the Responsibility Agreement, are the responsibility of the Sponsor. The Sponsor anticipates paying this receivable in the due course of business.

As June 30, 2016 and December 31, 2015, due to affiliates on the Consolidated Statement of Assets and Liabilities in the amounts of $602,303 and $472,057, respectively, was due to the Sponsor for reimbursements of offering costs.

For the three months ended June 30, 2016 and 2015, the Company paid $490,920 and $250,664, respectively, in dealer manager fees and $1,728,026 and $755,454, respectively, in selling commissions to the Company’s dealer manager, SC Distributors, LLC. For the six months ended June 30, 2016 and 2015, the Company paid $968,619 and $437,838, respectively, in dealer manager fees and $3,361,414 and $1,324,500, respectively, in selling commissions. These fees and commissions were paid in connection with the sales of the Company’s units to investors and, as such, were recorded against the proceeds from the issuance of units and are not reflected in the Company’s consolidated statement of operations.

Note 6. Organization and Offering Costs

As of June 30, 2016, the Sponsor has paid approximately $11,709,000 of offering costs and $236,000 of organization costs, all of which were paid directly by the Sponsor on behalf of the Company, and will be reimbursed to the Sponsor as disclosed in Note 2 of the consolidated financial statements. Such amounts include approximately $1,942,000 and $1,132,000 of offering costs, which were incurred by the Sponsor during the six months ended June 30, 2016 and 2015, respectively. During the six months ended June 30, 2016 and 2015, the Company paid $3,381,050 and $1,258,224, respectively, in reimbursement of offering costs to the Sponsor. Such offering costs reimbursed by the Company have been recognized against the proceeds from the issuance of units.

Since the Company started operations to June 30, 2016, the Company has reimbursed the Sponsor a total of approximately $11,203,400 of offering costs and there is a remaining balance of approximately $741,000 of offering and organization costs to be reimbursed to the Sponsor.

Note 7. Unit Capital

The Company has three classes of units: Class A units, Class C units and Class I units. The unit classes have different sales commissions and dealer manager fees, and there is an ongoing distribution fee with respect to Class C units. As of June 30, 2016, the Company recorded a liability in the amount of $1,331,000 for the estimated future amount of Class C distribution fee payable. The estimated liability is calculated based on a net asset value per unit of $9.025 using a discount rate of 4%. All units participate in the income and expenses of the Company on a pro-rata basis based on the number of units outstanding. As of June 30, 2016 the Class A and I units have a net asset value per unit of $8.53 and the Class C units have a net asset value per unit of $8.22. The following table is a summary unit activity during the six months ended June 30, 2016:

	Units							Units
	Outstanding				Units			Outstanding
	as of		Units Issued		Repurchased			as of
	December 31,		During		During			June 30,
	2015		the Period		the Period			2016
Class A units		9,709,153		2,887,158		(523,798	)		12,072,513
Class C units		1,073,599		3,206,824		—			4,280,423
Class I units		5,443,616		919,522		—			6,363,138
Total		16,226,368		7,013,504		(523,798	)		22,716,074

Beginning June 11, 2014, the Company commenced a unit repurchase program pursuant to which the Company may conduct quarterly unit repurchases of up to 5% of the weighted average number of outstanding units in any 12-month period to allow the Company’s unitholders, who have held units for a minimum of one year, to sell their units back to the Company at a price equal to the then current offering price less the sales fees associated with that class of units. The unit repurchase program includes numerous restrictions, including a one-year holding period, that limit the ability of the Company’s unitholders to sell their units. Unless the Company’s board of managers determines otherwise, the Company will limit the number of units to be repurchased during any calendar year to the number of units that can be repurchased with the proceeds the Company receives from the sale of units under the Company’s distribution reinvestment plan. At the sole discretion of the Company’s board of managers, the Company may also use cash on hand, cash available from borrowings and cash from the repayment or liquidation of investments as of the end of the applicable quarter to repurchase units.

During the six months ended June 30, 2016, the Company processed 14 repurchase requests for a total of 523,798 units at a repurchase price of $9.025 per unit. As of June 30, 2016, 8 of the repurchase requests for a total of 12,814 units or $115,650 were pending. These repurchase requests were completed by the Company on July 8, 2016.

Note 8. Distributions

Starting in July 2013, the Company has paid monthly distributions for all classes of units. The following table summarizes the distributions paid for the six months ended June 30, 2016:

		Daily Rate		Cash		Distributions		Total
Months ended	Date Declared	Per Unit		Distributions		Reinvested		Declared
January 31, 2016	January 19, 2016	$	0.00197268	$	590,074	$	421,766	$	1,011,840
February 29, 2016	February 19, 2016	$	0.00197268		592,036		427,352		1,019,388
March 31, 2016	March 28, 2016	$	0.00197268		675,639		482,207		1,157,846
April 30, 2016	April 19, 2016	$	0.00197268		654,356		506,242		1,160,598
May 31, 2016	May 6, 2016	$	0.00197268		715,936		554,319		1,270,255
June 30, 2016	June 21, 2016	$	0.00197268		731,881		561,652		1,293,533
Total for 2016				$	3,959,922	$	2,953,538	$	6,913,460

Note 9. Financial Highlights

The following is a schedule of financial highlights of the Company for the six months ended June 30, 2016 and 2015. The Company’s income and expense is allocated pro-rata across the outstanding Class A, Class C and Class I units, as applicable, and, therefore, the financial highlights are equal for each of the outstanding classes.

	Six Months Ended
	June 30,			June 30,
	2016			2015
Per unit data (1):
Net proceeds before offering costs (2)	$	9.025		$	9.025
Offering costs		(0.493	)		(0.476	)
Net Proceeds after offering costs		8.532			8.549
Net investment income		0.361			0.357
Net change in unrealized depreciation on investments		(0.003	)		—
Distributions		(0.358	)		(0.357	)
Net change in distribution fee payable		(0.059	)		—
Net increase/(decrease) in net assets		(0.059	)		—
Net asset value at end of period		8.473			8.549
Total return based on net asset value (3)(4)		4.19	%		4.18	%
Net assets at end of period	$	192,478,148		$	84,413,298
Units Outstanding at end of period		22,716,074			9,873,705
Ratio/Supplemental data (annualized) (4)(5):
Ratio of net investment income to average net assets		8.40	%		8.36	%
Ratio of net operating expenses to average net assets		1.39	%		2.53	%

1	The per unit data was derived by using the weighted average units outstanding during the six months ended June 30, 2016 and 2015 which were 19,314,130 and 8,461,156.

2	Represents net asset value at the beginning of the period.

Net asset value would have been lower if the Sponsor had not made capital contributions as of March 31, 2014 and December 31, 2013 of $31,750 and $51,034, respectively or had not absorbed and deferred reimbursement for a substantial portion of the Company’s operating expenses since the Company began operations.

Total return, ratio of net investment income and ratio of operating expenses to average net assets for the six months ended June 30, 2016 and 2015, prior to the effect of the Responsibility Agreement were as follows; total return: 2.31% and 2.32%, ratio of net investment income/(loss); 4.60% and 4.64%, and ratio of operating expenses to average net assets: 5.16% and 6.25%.

5	The Company’s net investment income has been annualized assuming consistent results over a full fiscal year, however, this may not be indicative of actual results over a full fiscal year.

Note 10. Subsequent Events

The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in the Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the three and six months ended June 30, 2016, except as discussed below.

Distributions

On July 19, 2016, with the authorization of the Company’s board of managers, the Company declared distributions for all classes of units for the period from July 1 through July 31, 2016. These distributions were calculated based on unitholders of record for each day in an amount equal to $0.00197268 per unit per day (less the distribution fee with respect to Class C units). On August 1, 2016, $775,535 of these distributions were paid in cash and on July 31, 2016, $630,142 were reinvested in units for those unitholders participating in the Distribution Reinvestment Plan.

Status of the Offering

Subsequent to June 30, 2016 through August 10, 2016, the Company sold approximately 2,033,300 units in the Offering (including units issued pursuant to the Distribution Reinvestment Plan) for approximately $19,313,000 in gross proceeds.

Unit Offering Price

Pursuant to the net asset value determination by the Company’s board of managers, the value has not increased above nor decreased below the Company’s net proceeds per unit; therefore, the Company will continue to sell units at a price of $10.00 per Class A unit, $9.576 per Class C unit and $9.186 per Class I unit. The Company’s net asset value and the offering prices would have decreased if the Sponsor had not made a capital contribution in the amount of $31,750 and $51,034 in the quarters ended March 31, 2014 and December 31, 2013, respectively, or had not absorbed and deferred reimbursement for a substantial portion of the Company’s operating expenses since the Company began its operations.

Investments

Subsequent to June 30, 2016 through August 10, 2016, the Company funded approximately $43.0 million in new investments and received proceeds from repayment of investments of approximately $17.4 million.

Agreements

On August 11, 2016, the Company entered into an Amended and Restated Operating Expenses Responsibility Agreement with the Company’s Sponsor and Advisor. Pursuant to the terms of this agreement, the Sponsor agreed to be responsible for the Company’s cumulative operating expenses incurred through June 30, 2016, including management and incentive fees earned by the Advisor during the quarter ended June 30, 2016. For additional information refer to Notes 2 and 5.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Company’s financial statements and related notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q.

Except as otherwise specified, references to “we,” “us,” “our,” or the “Company,” refer to TriLinc Global Impact Fund, LLC.

Forward Looking Statements

Some of the statements in this Form 10-Q constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report involve risks and uncertainties, including statements as to:

our future operating results;

our ability to raise capital in our public offering;

our ability to purchase or make investments in a timely manner;

our business prospects and the prospects of our borrowers;

the economic, social and/or environmental impact of the investments that we expect to make;

our contractual arrangements and relationships with third parties;

our ability to make distributions to our unitholders;

the dependence of our future success on the general economy and its impact on the companies in which we invest;

the availability of cash flow from operating activities for distributions and payment of operating expenses;

the performance of our Advisor, our sub-advisors and our Sponsor;

our dependence on our Advisor and our dependence on and the availabilities of the financial resources of our Sponsor;

the ability of our borrowers to make required payments;

our Advisor’s ability to attract and retain sufficient personnel to support our growth and operations;

the lack of a public trading market for our units;

our limited operating history;

our expected financings and investments;

the adequacy of our cash resources and working capital;

performance of our investments relative to our expectations and the impact on our actual return on invested equity, as well as the cash provided by these investments;

any failure in our Advisor’s or sub-advisors’ due diligence to identify all relevant facts in our underwriting process or otherwise;

the ability of our sub-advisors and borrowers to achieve their objectives;

the effectiveness of our portfolio management techniques and strategies;

failure to maintain effective internal controls; and

the loss of our exemption from the definition of an “investment company” under the Investment Company Act of 1940, as amended.

We use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC.

Overview

We make impact investments in SMEs that provide the opportunity to achieve both competitive financial returns and positive measurable impact. We were organized as a Delaware limited liability company on April 30, 2012. We have operated and intend to continue to operate our business in a manner that will permit us to maintain our exemption from registration under the Investment Company Act of 1940. We use the proceeds raised from the issuance of units to invest in SME through local market sub-advisors in a diversified portfolio of financial assets, including direct loans, loan participations, convertible debt instruments, trade finance, structured credit and preferred and common equity investments. A substantial portion of our assets consists of collateralized private debt instruments, which we believe offer opportunities for competitive risk-adjusted returns and income generation. We are externally managed and advised by TriLinc Advisors.

Our business strategy is to generate competitive financial returns and positive economic, social and environmental impact by providing financing to SMEs, primarily in developing economies. Our style of investment is referred to as impact investing, which J.P. Morgan Global Research and Rockefeller Foundation in a 2010 report called “an emerging alternative asset class” and defined as investing with the intent to create positive impact beyond financial return. We believe it is possible to generate competitive financial returns while creating positive, measurable impact. We measure the economic, social and environmental impact of our investments using industry-standard metrics, including the Impact Reporting and Investment Standards. Through our investments in SMEs, we intend to enable job creation and stimulate economic growth.

We commenced the Offering on February 25, 2013. Pursuant to the Offering, we are offering on a continuous basis up to $1.5 billion in units of our limited liability company interest, consisting of up to $1.25 billion of units in the primary offering consisting of Class A units at an initial offering price of $10.00 per unit, Class C units at $9.576 per unit and Class I units at $9.186 per unit, and up to $250 million of units pursuant to the Distribution Reinvestment Plan. SC Distributors, LLC is the dealer manager for the Offering. The Company’s offering period is currently scheduled to terminate on December 31, 2016. Our board has the right to further extend or terminate the Offering at any time.

In May 2012, the Advisor purchased 22,161 Class A units for aggregate gross proceeds of $200,000. On June 11, 2013, we satisfied the minimum offering requirement of $2,000,000 when the Sponsor purchased 321,330 Class A units for aggregate gross proceeds of $2,900,000 and we commenced operations. As of June 30, 2016, we had received subscriptions for and issued 23,266,150 of our units, including 728,257 units issued under our Distribution Reinvestment Plan, for gross proceeds of approximately $224,092,000 including approximately $6,573,000 reinvested under our Distribution Reinvestment Plan (before dealer-manager fees of approximately $3,166,000 and selling commissions of $10,958,000, for net proceeds of $209,968,000). As of June 30, 2016, $1.28 billion in units remained available for sales pursuant to the Offering, including approximately $243.4 million in units available pursuant to our Distribution Reinvestment Plan.

On November 20, 2015, we filed a registration statement on Form S-1 with the SEC in connection with the proposed offering of up to $1.15 billion in units of our limited liability company interest, including $150.0 million in units to be issued pursuant to our distribution reinvestment plan (the “Follow-On Offering”). The Follow-On Offering will only commence, if at all, until after the termination of the Offering. We will not determine until a later date whether we will commence the Follow-On Offering, which will depend on market and other factors.

Investments

Our investment objectives are to provide our unitholders current income, capital preservation, and modest capital appreciation. These objectives are achieved primarily through SME trade finance and term loan financing, while employing rigorous risk-mitigation and due diligence practices, and transparently measuring and reporting the economic, social and environmental impacts of our investments. The majority of our investments are senior and other collateralized loans to SMEs with established, profitable businesses in developing economies. With the nine sub-advisors that we have contracted to assist the Advisor in implementing the Company’s investment program, we expect to provide growth capital financing generally ranging in size from $5-15 million per transaction for direct SME loans and $500,000 to $5 million for trade finance transactions. We seek to protect and grow investor capital by: (1) targeting countries with favorable economic growth and investor protections; (2) partnering with sub-advisors with significant experience in local markets; (3) focusing on creditworthy lending targets who have at least 3-year operating histories and demonstrated cash flows enabling loan repayment; (4) making primarily debt investments, backed by collateral and borrower guarantees; (5) employing best practices in our due diligence and risk mitigation processes; and (6) monitoring our portfolio on an ongoing basis.

Investments will continue to be primarily credit facilities to developing economy SMEs, including trade finance and term loans, through TriLinc Advisor’s team of professional sub-advisors with a local presence in the markets where they invest. As of June 30, 2016, more than a majority of our investments were in the form of participations and we expect that future investments will continue to be primarily participations. We typically provide financing that is collateralized, has a short to medium-term maturity and is self-

liquidating through the repayment of principal. By providing additional liquidity to growing small businesses, we believe we support both economic growth and the expansion of the global middle class.

Revenues

Since we anticipate that the majority of our assets will consist of trade finance instruments and term loans, we expect that the majority of our revenue will continue to be generated in the form of interest. Our senior and subordinated debt investments may bear interest at a fixed or floating rate. Interest on debt securities is generally payable monthly, quarterly or semi-annually. In some cases, some of our investments may provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally is due at the maturity date. In addition, we generate revenue in the form of acquisition and other fees in connection with some transactions. Original issue discounts and market discounts or premiums are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans and debt securities as interest income. Dividend income, if any, will be recognized on an accrual basis to the extent that we expect to collect such amounts.

Expenses

Our primary operating expenses include the payment of asset management fees and expenses reimbursable to our Advisor under the Amended and Restated Advisory Agreement. We bear all other costs and expenses of our operations and transactions.

Since our inception through June 30, 2016, our Sponsor has assumed substantially all our operating expenses under the terms of the Responsibility Agreement. As of June 30, 2016, the Sponsor has agreed to pay a cumulative total of approximately $10.6 million of operating expenses.

Portfolio and Investment Activity

During the six months ended June 30, 2016, we invested approximately $117,467,000 across 25 separate portfolio companies, including 8 new borrowers. Our investments consisted of senior secured trade finance participations, senior secured term loan participations, senior secured term loans, an unsecured short term note, and a secured bridge loan. Additionally, we received proceeds from repayments of investment principal of approximately $56,522,000.

At June 30, 2016 and December 31, 2015, the Company’s investment portfolio included 27 and 25 companies, respectively, and the fair value of our portfolio was comprised of the following:

	As of June 30, 2016					As of December 31, 2015
	Investments		Percentage of			Investments		Percentage of
	at Fair Value		Total Investments			at Fair Value		Total Investments
Senior secured term loan	$	9,470,380		5.8	%	$	5,474,534		5.4	%
Senior secured term loan participations		40,137,329		24.8	%		18,484,242		18.3	%
Senior secured trade finance participations		92,324,782		57.0	%		77,069,328		76.3	%
Short term note and bridge loan		20,000,000		12.4	%		-		-
Total investments (1)	$	161,932,491		100.0	%	$	101,028,104		100.0	%

(1) Total investment data as of June 30, 2016 described in this report includes one bridge loan participation amounting to $5,000,000 and the unsecured short term note receivable amounting to $15,000,000 that the Company classifies as temporary investment for impact data purposes. Temporary investments are defined by the Company as investments that generally meet the standard underwriting guidelines for trade finance and term loan transactions and that also have the following characteristics: (1) maturity of less than one year, (2) loans to borrowers to whom, at the time of funding, the Company does not expect to re-lend. Impact data is not tracked for temporary investments.

As of June 30, 2016, the weighted average yield, based upon the cost of our portfolio, on trade finance participations, term loan participations, senior secured term loans, and short term notes and bridge loans were 11.0%, 13.8%, 13.0%, and 12.0%, respectively, for a weighted average yield on investments of approximately 11.9%.on our total portfolio.

As of December 31, 2015, the weighted average yield, based upon the cost of our portfolio, on trade finance participations, term loan participations, and senior secured term loans were 12.0%, 16.0%, and 13.5%, respectively, for a weighted average yield on investments of approximately 12.8%.on our total portfolio.

Prodesa

During 2014, the Company restructured two loans with one of its borrowers, Corporacion Prodesa S.R.L. (“Prodesa”). As of June 30, 2016, the Company’s investment in Prodesa is comprised of two senior secured term loan participations with an aggregate balance of $2,350,000 and a $950,000 senior secured purchase order revolving credit facility with a balance of $900,000. Prodesa did not timely make the payments that were due in March and April 2015 under the two loans due to economic difficulties. The Company has been working with Prodesa to remedy the default and bring the loans to a current status. On May 6, 2015, the Company entered into a short term forbearance agreement (the “Forbearance Agreement”) with Prodesa to provide Prodesa with temporary loan payment relief while a longer term plan is negotiated. Under the terms of the Forbearance Agreement, the Company agreed to accept partial interest payments, amounting to 50% of the required interest payments, for the months of March 2015 to December 2015. The unpaid interest will be included as part of the longer term plan. Through October 2015, Prodesa had made all interest payments required under the Forbearance Agreement. Interest payments required under the term loans for the months subsequent to October 2015 had not been made by Prodesa due to Prodesa being placed into bankruptcy in November 2015 as described further below. Now that Prodesa has exited the bankruptcy process, Prodesa can once again make interest payments. During July and August 2016, the Company has received $121,978 in interest payments from Prodesa. Accordingly, the Company is still accruing interest, which amounted to approximately $499,400 as of June 30, 2016, on the Prodesa loans. In addition, the Company is currently working on amending the term loans, and expects that Prodesa will start making regular principal payments starting in August 2016. The Company has estimated the fair value of the Prodesa loans as of June 30, 2016 at $3,250,000 based on the income valuation approach as further described in Note 4.

During 2015, Prodesa underwent a change in ownership. Through the month of September 2015, the new ownership had injected over $830,000 in Prodesa for working capital purposes. The Company has been working with Prodesa to re-align its operations and, on October 5, 2015, the Company funded a $400,000 senior secured purchase order revolving credit facility to Prodesa. The purchase order facility is secured by specific purchase orders from customers of Prodesa, as well as pledges of additional unencumbered assets and all shares of Prodesa. On November 6, 2015, Prodesa paid back to the Company the entire $400,000 and related interest owed under the purchase order facility. On November 20, 2015, the Company funded a second draw under the purchase order facility in the amount of $190,000 which was repaid in full on February 29, 2016. During the six months ended June 30, 2016, the Company funded three additional draws under the purchase order facility for an aggregate of $900,000.

Usivale

In May 2015, one of the Company’s borrowers, Usivale Industria E Commercio (“Usivale”), notified the Company that it would be unable to make its monthly interest payment for May 2015 and requested the deferment of interest payments until October 2015. Usivale is a sugar producer located in Brazil that has been in business since 1958. Usivale’s business is highly cyclical and it generates the majority of its revenues during the first and fourth quarters of any calendar year. In accordance with the terms of the loans, with an aggregate principal balance of $3,000,000 as of June 30, 2016, the Company originally increased the annual interest rate charged Usivale from 12.43% to 17.43%. However, as of June 30, 2016, the Company has placed Usivale on non-accrual status effective August 27, 2015, the date of the judicial recovery filing which is described further below. Interest not recorded relative to the original terms of the Usivale loans amounted to approximately $132,200 and $264,400, respectively for the three and six months ended June 30, 2016. The Company has estimated the fair value of the Usivale loans as of June 30, 2016 at $2,681,576, based on a discounted cash flow analysis (income approach), which is unchanged from the estimated fair value as of March 31, 2016 and December 31, 2015.

assembly of Usivale’s creditors was held on June 14, 2016 and a restructure plan was submitted and approved. Under the restructure plan, which is in the process of being ratified by the court, interest on the principal will start accruing effective July 1, 2016 at an annual rate of 12.43% and Usivale will start making periodic principal payments in the fourth quarter of 2016. Since August of 2015, the price of sugar has significantly improved and as a result, Usivale’s cash flows should permit it to meet its payment requirements under the restructure.

Fruit and Nut Distributor

The Company has a trade finance participation with a fruit and nut distributor (“the Distributor”) located in South Africa, with a principal balance outstanding of $805,343 of as June 30, 2016. The Distributor trade finance has a stated maturity date of May 22, 2015, which the Company agreed to extend. The Distributor had made partial payments of principal during 2015 (the original loan from the Company to the Distributor was for $1,250,000), with the most recent payment being made on October 27, 2015. Through the latter part of 2015, the depreciation in the South African Rand has proven to be problematic for the Distributor given that it has to purchase its inventory in U.S. Dollars and then sells in South African Rand. This situation has led the Distributor to experience some cash flow difficulties and operating losses. As of March 31, 2016, the Company, together with its sub-advisor, had agreed to extend further the principal maturity date to facilitate the strategic sale of the Distributor, which closed in June 2016. The Company had expected to restructure the loan as follows: Principal balance of $820,761, which includes capitalized accrued interest through January 31, 2016 amounting to $152,923; annual interest rate of 12% starting May 1, 2016; and repayment terms of five years. Accordingly, the Company placed this participation on non-accrual status effective February 1, 2016 and interest not recorded relative to the original terms of this participation amounted to approximately $29,500 and $40,000, respectively, for the three and six months ended June 30, 2016. Based on the information available to the Company and according to its valuation policies, the Company had estimated the fair value of its investment in the Distributor to be $761,684 as of March 31, 2016 and recorded an unrealized depreciation adjustment of $59,077 for the three months ended March 31, 2016.

Farm Supplies Distributor

Sesame Seed Exporter

The Company has a trade finance participation with a Sesame Seed Exporter (“the Exporter”) located in Guatemala, with a principal balance outstanding of $1,000,000 and accrued interest of $50,333 as of June 30, 2016. The participation has a maturity date of March 31, 2016 and is secured by inventory. During 2016, the Exporter lost a major customer, which resulted in a slowdown in business, affecting its ability to repay the amount due under the participation. However, the Exporter has been able to secure new customers to replace the lost order(s), which will enable the Exporter to start making payments to the Company. In addition, the Exporter made an interest payment of $9,667 during July 2016. The Company has determined that there is sufficient collateral to support the repayment of this participation and has determined, in accordance with its valuation policy, that the fair value of this investment should remain at $1,000,000 as of June 30, 2016.

Results of Operations

Consolidated operating results for the three and six months ended June 30, 2016 and 2015 are as follows:

	Three months ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Interest income	$	4,716,749		$	2,138,151		$	7,966,334		$	3,907,017
Interest from cash		63,980			11,506			156,249			29,122
Total investment income		4,780,729			2,149,657			8,122,583			3,936,139
Management fees		973,916			424,187			1,790,242			785,935
Incentive fees		745,727			327,310			1,396,075			604,490
Professional fees		252,664			192,093			541,695			482,081
General and administrative expenses		236,239			150,307			438,115			294,364
Board of managers fees		46,875			46,875			93,750			93,750
Total expenses		2,255,421			1,140,772			4,259,877			2,260,620
Expense support payment from Sponsor		(1,203,324	)		(627,668	)		(3,117,668	)		(1,346,933	)
Net expenses		1,052,097			513,104			1,142,209			913,687
Net investment income	$	3,728,632		$	1,636,553		$	6,980,374		$	3,022,452

Revenues

Three months ended June 30, 2016 and 2015

For the three months ended June 30, 2016 and 2015, total investment income amounted to $4,780,729 and $2,149,657, respectively. Interest income increased by $2,578,598 during the three months ended June 30, 2016 from the same period in 2015 as a result of an increase in our weighted average investment portfolio of approximately $73,121,000 combined with an increase in the weighted average yield of approximately 0.9% from a weighted average yield of 12.4% for the three months ended June 30, 2015 to approximately 13.3% for the three months ended June 30, 2016. The increase in yield was primarily due to the larger portion of term loans in the investment portfolio.

During the three months ended June 30, 2016, $3,743,432 or 79.4% of the interest income earned came from loan participations and $973,317 or 20.6% came from direct loans. In addition, we earned $63,980 in interest income on our cash balances.

For the three months ended June 30, 2015, interest income of $2,138,151 all came from loan participations. In addition, we earned $11,506 in interest income on our cash balances.

Six months ended June 30, 2016 and 2015

For the six months ended June 30, 2016 and 2015, total investment income amounted to $8,122,583 and $3,936,139, respectively. Interest income increased by $4,059,317 during the six months ended June 30, 2016 from the same period in 2015 as a result of an increase in our weighted average investment portfolio of approximately $61,487,000 combined with an increase in the weighted average yield of approximately 0.3% from a weighted average yield of 12.6% for the six months ended June 30, 2015 to approximately 12.9% for the six months ended June 30, 2016.

During the six months ended June 30, 2016, $6,689,825 or 84.0% of the interest income earned came from loan participations and $1,276,508 or 16.0% came from direct loans. In addition, we earned $156,249 in interest income on our cash balances.

For the six months ended June 30, 2015, interest income all came from loan participations and amounted to $3,907,017. In addition, we earned $29,122 in interest income on our cash balances.

Expenses

Three months ended June 30, 2016 and 2015

Total operating expenses, excluding the management and incentive fees, incurred for the three months ended June 30, 2016 increased by $146,503 to $535,778 from $389,275 for the three months ended June 30, 2015. The increase was primarily due to the following: 1) an increase in general and administrative expenses of $85,932, which was attributable to increases in a number of expenses, the largest being a $30,132 increase in printing costs, $24,263 increase in fees paid to our transfer agent, and $13,107 increase in fund accounting; and 2) an increase in professional fees of $60,571. Our Sponsor assumed responsibility for our operating

expenses in the amount of $457,597 and $300,358 under the Responsibility Agreement for expenses paid or incurred by the Company for the three months ended June 30, 2016 and 2015, respectively.

For the three months ended June 30, 2016 and 2015, the management fees amounted to $973,916 and $424,187, respectively. The incentive fees for the six months ended June 30, 2016 and 2015 amounted to $745,727 and $327,310, respectively. For the three months ended June 30, 2016 and 2015, the entire amounts of the incentive fees for both periods were assumed by the Sponsor under the Responsibility Agreement.

Six months ended June 30, 2016 and 2015

Total operating expenses, excluding the management and incentive fees, incurred for the six months ended June 30, 2016 increased by $203,365 to $1,073,560 from $870,195 for the six months ended June 30, 2015. The increase was primarily due to the following: 1) an increase in general and administrative expenses of $143,751, which was attributable to increases in a number of expenses, the largest being a $55,683 increase in fees paid to our transfer agent, $30,132 increase in printing costs, and $20,809 increase in fund accounting; and 2) an increase in professional fees of $59,614. Our Sponsor assumed responsibility for our operating expenses in the amount of $995,379 and $742,443 under the Responsibility Agreement for expenses paid or incurred by the Company for the six months ended June 30, 2016 and 2015, respectively.

For the six months ended June 30, 2016 and 2015, the management fees amounted to $1,790,242 and $785,935, respectively. The incentive fees for the six months ended June 30, 2016 and 2015 amounted to $1,396,075 and $604,490 respectively. A portion of the management fees, amounting to $726,214 for 2016 was assumed by our Sponsor under the Responsibility Agreement while none of the management fee for the six months ended June 30, 2015 was assumed by our Sponsor. In addition, for the six months ended June 30, 2016 and 2015, the entire amounts of the incentive fees for both periods were assumed by the Sponsor under the Responsibility Agreement.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation on Investments. We measure net realized gains or losses by the difference between the net proceeds from the repayment or sale of an investment and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. We had no unrealized gains or losses for the three months ended June 30, 2016 and 2015. We recorded a $59,077 unrealized loss for the six months ended June 30, 2016 and none for 2015. We had no realized gains or losses for the three and six months ended June 30, 2016 and 2015.

Changes in Net Assets from Operations. For the three months ended June 30, 2016 and 2015, we recorded a net increase in net assets resulting from operations, which consisted entirely of net investment income, of $3,728,632 and $1,636,553, respectively.

For the six months ended June 30, 2016 and 2015, we recorded a net increase in net assets resulting from operations, which consisted entirely of net investment income, of $6,921,297 and $3,022,452, respectively.

Financial Condition, Liquidity and Capital Resources

As of June 30, 2016, we had approximately $26.3 million in cash. We generate cash primarily from the net proceeds from the sale of units, from cash flows from interest, dividends and fees earned from our investments and principal repayments and proceeds from sales of our investments. We may also generate cash in the future from debt financing. Our primary use of cash will be to make loans, either directly or through participations, payments of our expenses and cash distributions to our unitholders. We expect to maintain cash reserves from time to time for investment opportunities, working capital and distributions. From the beginning of the Company’s operations to date, our Sponsor has absorbed substantially all of our operating expenses under the Responsibility Agreement. The Company may only reimburse the Sponsor for expenses covered under the Responsibility Agreement if we raise $200 million of gross proceeds in the primary offering and such reimbursement does not cause the Company’s net asset value per unit to fall below the prior’s quarter’s net asset value per unit. While the Company has raised gross proceeds of over $200 million in the primary offering as of June 30, 2016, any such reimbursement would cause the Company’s net asset value per unit to fall below the prior quarter’s net asset value per unit. Thus, such amounts are not yet payable by the Company to the Sponsor. Therefore, the Company does not anticipate that any reimbursement to the Sponsor during the primary offering would affect the Company’s ability to pay distributions. Following the end of the primary offering, the Sponsor could demand the reimbursement of operating expenses covered by the Responsibility Agreement. Such reimbursements to the Sponsor could affect the amount of cash available to the Company to pay distributions and/or make investments.

We sell our units on a continuous basis at initial offering prices of $10.00 per Class A unit, $9.576 per Class C unit, and $9.186 per Class I unit; however, to the extent that our net asset value on the most recent valuation date increases above or decreases below our net proceeds per unit as stated in the Company’s prospectus, our board of managers will adjust the offering prices of all classes of units to ensure that no unit is sold at a price, after deduction of selling commissions, dealer manager fees and organization and offering expenses, that is above or below our net asset value per unit as of such valuation date. Based on the valuation with respect to the quarter ended June 30, 2016, the offering price of our units has not changed and we are continuing to sell them at their original prices. However, the valuation and the offering prices would have decreased if the Sponsor had not made a capital contribution in the amount of $31,750 as of March 31, 2014 and $51,034 as of December 31, 2013 and had not absorbed and deferred reimbursement for substantially all of the Company’s operating expenses since it began its operations.

As of June 30, 2016, the Company had sold approximately 23.3 million total units in the Offering (including units pursuant to the Distribution Reinvestment Plan) for total gross offering proceeds of approximately $224 million.

We may borrow funds to make investments, including before we have fully invested the proceeds raised from the issuance of units, to the extent we determine that leveraging our portfolio would be appropriate. We have not decided to what extent, we will finance portfolio investments using debt or the specific form that any such financing would take, but we believe that obtaining financing is necessary for the Company to fully achieve its long term goals. We have been actively seeking financing and are currently talking with development banks and several commercial banks but have not yet received any commitments for financing. Accordingly, we cannot predict with certainty if we will be able to obtain financing and what terms any such financing would have or the costs we would incur in connection with any such arrangement. As of June 30, 2016, we had no debt outstanding and no available sources of debt financing.

Contractual Obligations and Commitments

The Company does not include a contractual obligations table herein as all obligations of the Company are short-term. We have included the following information related to commitments of the Company to further assist investors in understanding the Company’s outstanding commitments.

We have entered into certain contracts under which we have material future commitments. Our Amended and Restated Advisory Agreement between us and the Advisor, dated as of February 25, 2014, has a one-year term and is subject to an unlimited number of renewals upon mutual consent of the Company and the Advisor. On March 24, 2015, the Company renewed the Company’s arrangement with the Advisor for an additional one-year term. On February 19, 2016, our board of managers determined to extend our Advisory Agreement, effective March 24, 2016, for an additional one year term. The Advisor serves as our advisor in accordance with the terms of our Amended and Restated Advisory Agreement. Payments under our Amended and Restated Advisory Agreement in each reporting period consist of (i) an asset management fee equal to a percentage of the value of our gross assets, as defined in the agreement, and (ii) the reimbursement of certain expenses. Certain subordinated fees based on our performance are payable after our subordination is met.

If any of our contractual obligations discussed above are terminated, our costs may increase under any new agreements that we enter into as replacements. We would also likely incur expenses in locating alternative parties to provide the services we expect to receive under our Amended and Restated Advisory Agreement.

Off-Balance Sheet Arrangements

Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not expect to have any off-balance sheet financings or liabilities. The Company reimburses organization and offering expenses to the Sponsor to the extent that the aggregate of selling commissions, dealer manager fees and other organization and offering costs do not exceed 15.0 % of the gross offering proceeds raised from the offering. As of June 30, 2016, the total amount that would be due to be reimbursed to the Sponsor is approximately $741,000.

Pursuant to the terms of the Responsibility Agreement between the Company, the Advisor and the Sponsor, the Sponsor has paid expenses on behalf of the Company through June 30, 2016 and will pay additional accrued operating expenses of the Company, which may not be reimbursable to the Sponsor until the Company has raised $200 million of gross proceeds in the primary offering and such reimbursement does not cause the Company’s net asset value per unit to fall below the prior quarter’s net asset value per unit. Such expenses will be expensed and payable by the Company in the period they become reimbursable and are estimated to be approximately $10.6 million through June 30, 2016.

Distributions

We have paid distributions commencing with the month beginning July 1, 2013, and we intend to continue to pay distributions on a monthly basis. From time to time, we may also pay interim distributions at the discretion of our board. Distributions are subject to the board of managers’ discretion and applicable legal restrictions and accordingly, there can be no assurance that we will make distributions at a specific rate or at all. Distributions are made on all classes of our units at the same time. The cash distributions received by our unitholders with respect to the Class C units are and will continue to be lower than the cash distributions with respect to Class A and Class I units because of the distribution fee relating to Class C units, which is an expense specific to Class C unitholders. Amounts distributed to each class are allocated among the unitholders in such class in proportion to their units. Distributions are paid in cash or reinvested in units, for those unitholders participating in the Distribution Reinvestment Plan. For the six months ended June 30, 2016, we paid a total of $6,913,460 in distributions, comprised of $3,959,922 paid in cash and $2,953,538 reinvested under our Distribution Reinvestment Plan.

The following table summarizes our distributions declared since we commenced operations on June 11, 2013, including the breakout between the distributions paid in cash and those reinvested pursuant to our Distribution Reinvestment Plan:

									Sources
Quarters ended	Amount per Unit		Cash Distributions		Distributions Reinvested		Total Declared		Cash Flows from Operating Activities		Cash Flows from Financing Activities (1)
March 31, 2016	$	0.17570	$	1,857,749	$	1,331,325	$	3,189,074	$	1,857,749	$	—
June 30, 2016	$	0.17570		2,102,173		1,622,213		3,724,386		2,102,173		—
Total for 2016			$	3,959,922	$	2,953,538	$	6,913,460	$	3,959,922	$	—

March 31, 2015	$	0.17377	$	944,850	$	441,310	$	1,386,160	$	944,850	$	—
June 30, 2015	$	0.17570		1,079,836		556,073		1,635,909		1,079,836		—
September 30, 2015	$	0.17764		1,263,850		744,903		2,008,753		1,263,850		—
December 31, 2015	$	0.17764		1,519,822		1,014,666		2,534,488		1,519,822		—
Total for 2015			$	4,808,358	$	2,756,952	$	7,565,310	$	4,808,358	$	—

March 31, 2014	$	0.15577	$	251,016	$	71,482	$	322,498	$	219,266	$	31,750
June 30, 2014	$	0.16970		349,070		151,603		500,673		349,070		—
September 30, 2014	$	0.17764		544,594		242,582		787,176		544,594		—
December 31, 2014	$	0.17764		794,372		347,002		1,141,374		794,372		—
Total for 2014			$	1,939,052	$	812,669	$	2,751,721	$	1,907,302	$	31,750

September 30, 2013	$	0.15924	$	46,681	$	21,770	$	68,451	$	46,681	$	—
December 31, 2013	$	0.15924		169,699		28,492		198,191		118,665		51,034
Total for 2013			$	216,380	$	50,262	$	266,642	$	165,346	$	51,034

(1)	Capital contribution from our Sponsor

Related Party Transactions

For the six months ended June 30, 2016 and 2015, the Sponsor assumed responsibility for $3,117,668 and $1,346,933 of the Company’s operating expenses, management fees and incentive fees, which are deferred under the Responsibility Agreement.

For the six months ended June 30, 2016 and 2015, the Advisor earned $1,790,242 and $785,935, respectively, in management fees and $650,348 and $604,490, respectively, in incentive fees.

As of June 30, 2016 and December 31, 2015, due from affiliates on the Consolidated Statement of Assets and Liabilities in the amounts of $2,731,776 and $1,874,932, respectively, was due from the Sponsor in connection with the Responsibility Agreement for operating expenses which were paid by the Company, but, under the terms of the Responsibility Agreement, are the responsibility of the Sponsor. The Sponsor anticipated paying this receivable in the due course of business.

For the six months ended June 30, 2016 and 2015, the Company paid $968,619 and $437,838, respectively, in dealer manager fees and $3,361,414 and $1,324,500, respectively, in selling commissions to the Company’s dealer manager, SC Distributors, LLC. These fees and commissions were paid in connection with the sales of the Company’s units to investors and, as such, were recorded against the proceeds from the issuance of units and are not reflected in the Company’s consolidated statement of operations.

Legal Proceedings

The Company is not party to any material legal proceedings.

Subsequent Events

There have been no subsequent events that occurred during such period that would require disclosure in the Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the three months ended June 30, 2016, except as discussed below.

Distributions

Status of the Offering

Subsequent to June 30, 2016 through August 10, 2016, the Company sold approximately 2,033,300 units in the Offering (including shares issued pursuant to the Distribution Reinvestment Plan) for approximately $19,313,000 in gross proceeds.

Unit Offering Price

Based on the Company’s net asset value of $193,809,148 as of June 30, 2016, our board of managers has determined that no change to the offering price of our units is required and we are continuing to sell our units at their original price of $10.00 per Class A unit, $9.576 per Class C unit and $9.186 per Class I unit. Our net asset value and the offering prices would have decreased if the Sponsor had not made a capital contribution in the amount of $31,750 and $51,034 in the quarters ended March 31, 2014 and December 31, 2013, respectively or had not absorbed and deferred reimbursement for a substantial portion of our operating expenses since we began our operations.

Investments

Subsequent to June 30, 2016 through August 10, 2016, the Company funded approximately $43.0 million in new trade finance participations and received proceeds from repayment of trade finance participations of approximately $17.4 million.

Agreements

On August 11, 2016 we entered into the Responsibility Agreement with our Sponsor and Advisor. Pursuant to the terms of the Responsibility Agreement, our Sponsor agreed to be responsible for our cumulative operating expenses incurred through March 31, 2016, including incentive fees earned by the Advisor during the quarter ended June 30, 2016. For additional information regarding the Responsibility Agreement refer to Notes 2 and 5 of the financial statements.

Critical Accounting Policies and Use of Estimates

The following discussion addresses the initial accounting policies that we utilize based on our current expectations of our operations. Our most critical accounting policies involve decisions and assessments that could affect our reported assets and liabilities, as well as our reported revenues and expenses. We believe that all of the decisions and assessments upon which our financial statements are based are reasonable at the time made and based upon information available to us at that time. Our critical accounting policies and accounting estimates will be expanded over time as we continue to implement our business and operating strategy. In addition to the discussion below, we also describe our critical accounting policies in the notes to our financial statements.

Basis of Presentation

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the use of estimates, assumptions and the exercise of subjective judgment as to future uncertainties.

Although we were organized and intend to conduct our business in a manner so that we are not required to register as an investment company under the Investment Company Act of 1940, our financial statements are prepared using the specialized accounting principles of the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies. Overall, we believe that the use of investment company accounting makes our financial statements more useful to investors and other financial statement users since it allows a more appropriate basis of comparison to other entities with similar objectives.

Valuation of Investments

Our board of managers has established procedures for the valuation of our investment portfolio in accordance with ASC Topic 820, Fair Value Measurement (“ASC 820”). ASC 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC 820, fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 — Valuations based on inputs other than quoted prices included in Level 1, which are either directly or indirectly observable.

Level 3 — Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date. The inputs for the determination of fair value may require significant management judgment or estimation and is based upon management’s assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the market or income approach and may involve pricing models whose inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates and earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. The information may also include pricing information or broker quotes that include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence.

The inputs used in the determination of fair value may require significant judgment or estimation.

Investments for which market quotations are readily available are valued at those quotations. Most of our investments are loans to private companies, which are not actively traded in any market and for which quotations are not available. For those investments for

which market quotations are not readily available, or when such market quotations are deemed by the Advisor not to represent fair value, our board of managers has approved a multi-step valuation process to be followed each fiscal quarter, as described below:

Each investment is valued by the Advisor in collaboration with the relevant sub-advisor;

For all investments with a maturity of greater than 12 months, we have engaged Duff & Phelps, LLC (“Duff & Phelps”) to conduct a review on the reasonableness of our internal estimates of fair value on each asset on a quarterly rotating basis, with each of such investments being reviewed at least annually, and provide an opinion that the Advisor’s estimate of fair value for each investment is reasonable;

The audit committee of our board of managers reviews and discusses the preliminary valuation prepared by the Advisor and any opinion rendered by Duff & Phelps; and

Our board of managers discusses the valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Advisor, Duff & Phelps and the audit committee. Our board of managers is ultimately responsible for the determination, in good faith, of the fair value of each investment.

Below is a description of factors that our board of managers may consider when valuing our investments.

Fixed income investments are typically valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including the sale of a business). The income approach uses valuation techniques to convert future amounts (for example, interest and principal payments) to a single present value amount (discounted) calculated based on an appropriate discount rate. The measurement is based on the net present value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in valuing our investments include, as applicable: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the borrower’s ability to make payments, its earnings and discounted cash flows, the markets in which the company does business, comparisons of financial ratios of peer companies that are public, the principal market for the borrower’s securities and an estimate of the borrower’s enterprise value, among other factors.

We may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. We may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors we deem relevant in measuring the fair values of our investments.

Revenue Recognition

We record interest income on an accrual basis to the extent that we expect to collect such amounts. We do not accrue as a receivable interest on loans for accounting purposes if we have reason to doubt our ability to collect such interest. We record prepayment premiums on loans and debt securities as interest income on a straight line basis, which we have determined not to be materially different from the effective yield method.

We generally place loans on non-accrual status when principal and interest are past due 90 days or more or when there is a reasonable doubt that we will collect principal or interest. If, however, management believes the principal and interest will be collected, a loan may be left on accrual status during the period the Company is pursuing repayment of the loan. Accrued interest is generally reversed when a loan is placed on non-accrual. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment of the financial condition of the borrower. Non-accrual loans are generally restored to accrual status when past due principal and interest is paid and, in the Advisor’s judgment, is likely to remain current over the remainder of the term. At June 30, 2016, two portfolio companies were on non-accrual status with an aggregate fair value of $3,427,842 or 2.1% of the fair value of the Company’s total investments.

Structuring and similar fees are recorded as a discount on investments purchased and are accreted into income, on a straight line basis, which we have determined not to be materially different from the effective yield method. Structuring and similar fees are included in interest income.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation on Investments

We measure net realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, including unamortized upfront fees and prepayment penalties. Realized gains or losses on the disposition of an investment are calculated using the first in first out (FIFO) method, utilizing the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

Payment-in-Kind Interest

We may have investments that contain a payment-in-kind, or PIK, interest provision. For loans with contractual PIK interest, any interest will be added to the principal balance of such investments and be recorded as income, if the valuation indicates that such interest is collectible.

Distribution Fee and Out-of-Period Adjustment

Organization and Offering Expenses

We may reimburse our dealer manager for certain expenses that are deemed underwriting compensation. Assuming an aggregate selling commission and a dealer manager fee of 9.75% of the gross offering proceeds (which assumes all offering proceeds come from Class A units), we would reimburse the dealer manager in an amount up to 0.25% of the gross offering proceeds. Because the aggregate selling commission and dealer manager fees will be less than 9.75% of the gross offering proceeds (due to a portion of the offering proceeds coming from the sale of Class C and Class I units), we may reimburse the dealer manager for expenses in an amount greater than 0.25% of the gross offering proceeds, provided that we will not pay or reimburse any of the foregoing costs to the extent such payment would cause total underwriting compensation to exceed 10.0% of the gross proceeds of the primary offering as of the termination of the offering, as required by the rules of FINRA.

Expense Responsibility Agreement

Pursuant to the terms of the Responsibility Agreement, the Sponsor has paid expenses on behalf of the Company through June 30, 2016 and will additionally pay the accrued operating expenses of the Company as of on behalf of the Company. Since the inception of the Company through June 30, 2016, pursuant to the terms of the Responsibility Agreement, the Sponsor has paid approximately $7,697,700 of operating expenses, management fees, and incentive fees on behalf of the Company and will pay or reimburse to the Company an additional $2,916,500 of expenses, which have been accrued by the Sponsor as of June 30, 2016. Such expenses may not be reimbursable to the Sponsor until the Company has raised $200 million of gross proceeds in the primary offering, and any such reimbursement does not cause the Company’s net asset value per unit to fall below the prior quarter’s net asset value per unit (the “Gross Proceeds Hurdle”). To the extent the Company does not meet the Gross Proceeds Hurdle in any quarter, no amount will be payable by the Company for reimbursement to the Sponsor. While the Company has raised over $200 million of gross proceeds in the primary offering as of June 30, 2016, the Company has not met the Gross Proceeds Hurdle for the quarter ending June 30, 2016 because any reimbursement would cause the Company’s Net Assets Value per unit to fall below the prior quarter. Therefore, expenses of the Company covered by the Responsibility Agreement have not been recorded as expenses of the Company as of June 30, 2016. In accordance with ASC 450, Contingencies, such expenses will be accrued and payable by the Company in the period that they become both probable and estimable.

Income Taxes

We are characterized as a partnership for U.S. federal income tax purposes.

Calculation of Net Asset Value

The Company’s net asset value is calculated on a quarterly basis and commenced with respect to the first full quarter after the Company commenced operations. The Company calculates its net asset value per unit by subtracting total liabilities from the total value of our assets on the date of valuation and dividing the result by the total number of outstanding units on the date of valuation. The net asset value per Class A, Class C and Class I units are calculated on a pro-rata basis based on units outstanding.

Recently Issued Accounting Pronouncements

Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay the adoption of new or revised accounting standards until such time as those standards apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised accounting standards. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates. There are no new or revised accounting standards that we have not adopted.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. Our investments are currently structured with both fixed and floating interest rates. Those structured with floating rates are referenced to LIBOR and incorporate fixed interest rate floors. If rates go down further, interest income will not decrease from current levels. To the extent that interest rates go up substantially, these investments will accrue higher amounts of income than currently being realized. Returns on investments that carry fixed rates are not subject to fluctuations in interest rates, and will not adjust should rates move up or down.

To the extent that we borrow money to make investments, our net investment income will be dependent upon the difference between the rate at which we borrow funds and the rate at which we invest these funds. In periods of rising interest rates, our cost of funds would increase, which may reduce our net investment income. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

Although we operate in a number of foreign markets, all investments are currently denominated in U.S. Dollars. Therefore, the current portfolio does not present currency risk to U.S. unitholders. In the future, we may hedge against interest rate and currency exchange rate fluctuations by using standard hedging instruments such as futures, options and forward contracts. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.

Item 4. Controls and Procedures

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q and determined that the disclosure controls and procedures are effective.

There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings.

There are no pending material legal proceedings to which the Company or any of our subsidiaries or any of our property is subject.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Part I, Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 30, 2016 (“2015 Form 10-K”), which could materially affect our business, financial condition, and/or future results. The risks described in our 2015 Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results.

There have been no material changes to the risk factors disclosed in our 2015 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the six months ended June 30, 2016, we did not sell or issue any equity securities that were not registered under the Securities Act.

Use of Proceeds from Registered Securities

On February 25, 2013, the Registration Statement on Form S-1, File No. 333-185676 covering the Offering, of up to $1.5 billion in units of our limited liability company interest, was declared effective under the Securities Act of 1933 by the SEC. The Offering commenced on February 25, 2013, and is currently expected to terminate on or before December 31, 2016, unless extended by our board of managers.

Through SC Distributors, LLC, the dealer manager for the Offering, we are offering to the public on a best efforts basis up to $1.25 billion of units, consisting of Class A units at $10.00 per unit, Class C units at $9.576 per unit and Class I units at $9.186 per unit.

We are also offering up to $250 million of units to be issued pursuant to our Distribution Reinvestment Plan. Units issued under the Distribution Reinvestment Plan are offered at a price equal to the then current offering price per unit less the sales fees associated with that class of units in the Primary Offering. The units being offered can be reallocated among the different classes and between the Primary Offering and the Distribution Reinvestment Plan.

As of June 30, 2016, we had received subscriptions for and issued 23,266,150 of our units, including 728,257 units issued under our Distribution Reinvestment Plan, for gross proceeds of approximately $224,092,000 including approximately $6,573,000 reinvested under our Distribution Reinvestment Plan, (before dealer-manager fees of approximately $3,166,000 and selling commissions of $10,958,000, for net proceeds of $209,968,000). From the net offering proceeds, we paid and accrued a total of $11,203,416 towards reimbursement to our Sponsor for our organization and offering costs and we have financed a total of approximately $162,000,000 in senior secured trade finance, senior secured term loan transactions, short term notes and bridge loans.

As of June 30, 2016, approximately $741,000 remained payable to our Sponsor for costs related to our organization and offering.

Unit Repurchase Program

Beginning June 11, 2014, we commenced a unit repurchase program pursuant to which we may conduct quarterly unit repurchases of up to 5% of our weighted average number of outstanding units in any 12-month period to allow our unitholders, who have held our units for a minimum of one year, to sell their units back to us at a price equal to the then current offering price less the sales fees associated with that class of units. Our unit repurchase program includes numerous restrictions, including a one-year holding period, that limit the ability of our unitholders to sell their units. Unless our board of managers determines otherwise, we will limit the number of units to be repurchased during any calendar year to the number of units we can repurchase with the proceeds we receive from the sale of units under our distribution reinvestment plan. At the sole discretion of our board of managers, we may also use cash on hand, cash available from borrowings and cash from liquidation of investments as of the end of the applicable quarter to repurchase units.

On November 11, 2014, our board of managers amended our unit repurchase program to provide for the repurchases to be made on the last calendar day of the quarter rather than the last business day of the quarter.

Our board of managers has the right to amend, suspend or terminate the unit repurchase program to the extent that it determines that it is in our best interest to do so. We will promptly notify our unitholders of any changes to the unit repurchase program, including any amendment, suspension or termination of it in our periodic or current reports or by means of other notice. Moreover, the unit repurchase program will terminate on the date that our units are listed on a national securities exchange, are included for quotation in a national securities market or, in the sole determination of our board of managers, a secondary trading market for the units otherwise develops.

The above description of the unit repurchase program is a summary of certain of the terms of the unit repurchase program. Please see the full text of the unit repurchase program, which is included as Exhibit 4.3 to this Quarterly Report on Form 10-Q, for all the terms and conditions.

During the three months ended June 30, 2016, we fulfilled the following request pursuant to our unit repurchase program:

Period	Total Number of Units Purchased		Average Price Paid Per Unit		Total Number of Units Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Units that May Yet be Purchased Under the Program
04/01/2016 - 04/30/2016		498,943	$	9.025		498,943		506,566
05/01/2016 - 05/31/2016		—		—		—		506,566
06/01/2016 - 06/30/2016		—		—		—		506,566
Total		498,943	$	9.025		498,943

During the three months ended June 30, 2016, we repurchased 498,943 units for a total of $4,504.964. In addition, as of June 30, 2016, there were 8 repurchase requests for a total of 12,814 units that were pending which were processed by the Company on July 8, 2016 at a price of $9.025 per unit.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Number		Description

3.1		Certificate of Formation of TriLinc Global Impact Fund, LLC. Incorporated by reference to Exhibit 3.1 to the Draft Registration Statement on Form S-1 (File No. 377-00015) filed with the Securities and Exchange Commission (the “SEC”) on November 1, 2012.

3.2		Second Amended and Restated Limited Liability Company Operating Agreement. Incorporated by reference to Appendix A to the Prospectus filed pursuant to Rule 424(b)(3) with the SEC on April 28, 2016.

4.1		Amended and Restated Distribution Reinvestment Plan. Incorporated by reference to Appendix C to the Prospectus filed pursuant to Rule 424(b)(3) with the SEC on April 28, 2016.

4.2		Amended and Restated Unit Repurchase Program. Incorporated by reference to Appendix D to the Prospectus filed pursuant to Rule 424(b)(3) with the SEC on April 28, 2016.

10.1*		Amended and Restated Operating Expense Responsibility Agreement among TriLinc Global Impact Fund, LLC, TriLinc Global, LLC and TriLinc Advisors, LLC dated August 11, 2016.

31.1*		Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.

Number		Description

31.2*		Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.

32.1*		Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following materials from TriLinc Global Impact Fund LLC’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed on August 15, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Assets and Liabilities, (ii) Consolidated Statement of Operations, (iii) Consolidated Statement of Changes in Net Assets, (iv) Consolidated Statements of Cash Flows, and (v) Notes to the Consolidated Financial Statements.

*	Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TRILINC GLOBAL IMPACT FUND, LLC.

August 15, 2016	By:	/s/ Gloria S. Nelund
		Gloria S. Nelund
		Chief Executive Officer

August 15, 2016	By:	/s/ Brent L. VanNorman
		Brent L. VanNorman
		Chief Financial Officer