T
TradeCo Physical Arbitrage
Arbitrage trading · Multi-book JV

Physical arbitrage, AI-native infrastructure, institutional risk control.

TradeCo is a physical arbitrage commodity trading platform and consolidation vehicle, combining multi-commodity trading books, shared corporate functions and an AI-native CTRM system to capture arbitrage in fuels, metals and bulk commodities with disciplined risk management. :contentReference[oaicite:1]{index=1}

Time · Geographical · Contractual · Book arbitrage Self-liquidating TF structures Multi-asset JV structure
Arbitrage-driven: low-margin, high-turnover flows with price exposure hedged via disciplined VaR and delta-hedging frameworks. :contentReference[oaicite:2]{index=2}
About TradeCo

A consolidation vehicle for physical arbitrage trading teams.

The commodities trading industry is entering a consolidation phase. TradeCo provides small and mid-sized teams with the funding, CTRM infrastructure and risk management of a large trading house – while preserving entrepreneurial economics via JV books. :contentReference[oaicite:3]{index=3}

TradeCo is designed as a scalable platform to:

  • Pool equity and trade finance capacity to reach USD 1–2bn+ of TF lines and USD 5–10bn revenue potential. :contentReference[oaicite:4]{index=4}
  • Offer trading teams access to state-of-the-art CTRM and AI tools without the legacy burden of large houses.
  • Centralise corporate functions – risk, legal, finance, tax, talent – to maximise time spent on origination and execution.
  • Build a unique multi-commodity data set that compounds into a durable trading and risk edge.

The platform is built for:

  • Niche traders with proven books and limited equity or access to multi-pool funding.
  • Medium-sized trading houses seeking scalable CTRM and risk infrastructure to grow beyond current products or regions.
  • Institutional investors looking for exposure to diversified, risk-managed physical arbitrage strategies with embedded optionality on assets and M&A. :contentReference[oaicite:5]{index=5}
Trading model

Pure-play physical arbitrage, tightly risk-managed.

TradeCo focuses on recurring, low-margin flows in fuels, metals and bulk commodities, extracting value from market inefficiencies across time, geography, quality and contractual structures – with price exposure hedged through disciplined SOPs. :contentReference[oaicite:6]{index=6}

Core arbitrage pillars

  • Time spread arbitrage – capturing contango/backwardation and storage economics over defined windows.
  • Geographical arbitrage – monetising regional pricing differentials net of freight, insurance and logistics constraints.
  • Contractual arbitrage – managing quality, delivery windows, QP optionality and documentation to unlock mispriced basis. :contentReference[oaicite:7]{index=7}
  • Book / blending arbitrage – warehousing, blending and cross-book optimisation to upgrade or re-route material.
Delta-hedged physical books Dedicated hedge trading desk VaR-based limits & stop-loss

Risk and funding architecture

  • Self-liquidating trade finance structures with tripartite agreements between TF banks and brokers for margining. :contentReference[oaicite:8]{index=8}
  • Target leverage of 90–98% across bankable flows, with non-bankable exposures capped at JV book equity.
  • Dedicated risk management function monitoring counterparties, exposure and liquidity in real time.
  • Light-asset model with high visibility into warehousing, logistics and production assets for later-stage investment or M&A.
Investment case

High-ROE arbitrage with embedded optionality.

TradeCo is structured to offer institutional investors a combination of recurring arbitrage P&L and asymmetric upside from consolidation, M&A and infrastructure exposure across energy and metals value chains. :contentReference[oaicite:9]{index=9}

Economics
Attractive equity returns

Industry-wide, physical arbitrage trading has historically delivered 20–30% ROE in average years and 50–100% in periods of dislocation, with low net margins on large turnover and high payout ratios.

20–30% target ROE per annum (illustrative)
Risk profile
Low price exposure, high control

The strategy targets hedged, self-liquidating TF flows with limited speculative exposure. Risk is governed by VaR limits, daily delta-hedging and strict SOPs for positions, counterparties and liquidity.

1.5–2.0% gross margin 0.5–1.0% net
Optionality
Consolidation & asset pipeline

Through JV partnerships and origination, TradeCo gains early visibility on trading teams, warehousing, logistics, mining and refining assets – creating optionality on later-stage acquisitions and infrastructure-backed strategies.

Phased growth trading JV → infra & structured deals
Technology

AI-native CTRM and optimisation as a shared backbone.

TradeCo is built around a production-ready, AI-native CTRM prototype that can be deployed across JV books and commodities, giving smaller teams access to capabilities typically reserved for the largest trading houses. :contentReference[oaicite:10]{index=10}

CTRM core functionality

  • Multi-commodity, multi-book CTRM tailored to physical arbitrage flows (assays, invoicing, hedging, TF documentation).
  • Real-time exposure, P&L and risk analytics for each JV book and for the consolidated platform.
  • Scalable data structures to integrate new products, teams and locations quickly as the platform grows. :contentReference[oaicite:11]{index=11}
CTRM engine Risk dashboards Portfolio analytics

AI-driven optimisation

  • AI modules to support arbitrage strategy selection, pricing and hedging optionality.
  • Investment and portfolio construction tools for fund-level strategies and structured TF products.
  • Advanced transaction monitoring, reporting and potential tokenisation of TF flows via stable-coin-linked instruments in regulated environments. :contentReference[oaicite:12]{index=12}
Structure

From multi-book trading JV to infrastructure and structured deals.

TradeCo is conceived in phases: starting with a trading JV umbrella for multiple commodity books and evolving into an investment platform with dedicated funds for structured deals and infrastructure across energy and metals. :contentReference[oaicite:13]{index=13}

Phase 1 – Trading JV umbrella

2026–2030 (+2 years extension)
Fuel JV book Metals JV book Other commodities

Centralised corporate platform hosting multiple JV trading books. Each book:

  • Retains its own P&L and equity economics.
  • Shares TF lines, subordinated debt and corporate functions with the platform. :contentReference[oaicite:14]{index=14}
  • Integrates into the shared CTRM and risk infrastructure.

Phase 2 – Structured deals & infrastructure funds

From 2028–2032 onwards
Fund I (5Y+2) Fund II (3Y+2)

Dedicated investment vehicles to deploy capital into:

  • Structured TF transactions, prepays and off-take agreements.
  • Warehousing, blending and logistics infrastructure.
  • Upstream and midstream energy and metals assets, leveraging TradeCo’s information and origination edge. :contentReference[oaicite:15]{index=15}
Team

Execution, risk and technology leadership from top-tier trading houses.

TradeCo is led by a team with senior experience across physical arbitrage trading, AI and risk systems, M&A and strategic development at institutions such as Trafigura, Glencore, Mercuria, Goldman Sachs and leading banks. :contentReference[oaicite:16]{index=16}

Julian Gonzalez
Arbitrage Trading & Business Development

15+ years in metals arbitrage trading, including leadership roles at JPMorgan Commodities, Trafigura (Global Head of Zinc & Lead) and Arrow Metals PTE (Chairman of the Board).

Miguel Pacheco
Strategic Development & M&A

25+ years in M&A, corporate finance and strategic development with roles at Trafigura, Mercuria, Hartree Metals and TF Cargoes; extensive experience in trading innovation and inventory management.

Ling Li
AI Systems & IT Risk Management

25+ years in AI and risk systems for trading at institutions including BNP Paribas and Goldman Sachs, with a background in systems engineering from Imperial College. :contentReference[oaicite:17]{index=17}

Bruno Roch
M&A & Risk Management

20+ years in energy markets covering physical and derivatives execution with leadership roles at Trafigura, SUEK and Goldman Sachs; BA in Business Studies from Middlesex University.

Contact

Discuss JV opportunities, funding or strategic partnerships.

For access to the full investor deck, detailed risk framework and pipeline opportunities, please reach out to the TradeCo team using the form below. :contentReference[oaicite:18]{index=18}

Send us a message

Please note: this information is for professional and qualified investors and partners only.
This form is a static placeholder. Connect it to your preferred CRM or email endpoint before use.

Direct contact
For deal flow, JV discussions or access to the full presentation, please contact the TradeCo team at the email indicated in the confidential deck. :contentReference[oaicite:19]{index=19}

Disclaimer
This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments. Any investment decision should be based on independent analysis and professional advice.