For Investors
The Del Gatto Finance Group offers a unique opportunity for uncorrelated returns lending to stakeholders in the global diamond and jewelry industry supply chain.
A Unique Market Opportunity
The diamond and jewelry industry, one of the world’s oldest and most established sectors, is home to some of the most valuable brands globally. Despite global economic challenges, the industry has shown resilience with a consistent annual growth rate of 1%-2%, largely driven by emerging markets like India and the UAE. As Generations Y and Z, who currently account for 55% of luxury market spending, continue to grow in influence, the market is poised for even greater expansion in the future.
Global Supply Chain &
Market Dynamics
The retail diamond and jewelry industry relies on a complex and fragmented global supply chain. Each year, an estimated 100-110 million carats of natural rough diamonds, valued at $12 billion to $15 billion, are produced. Of this, approximately 30% are gem-quality diamonds, destined for cutting, polishing, and jewelry manufacturing, while the remainder is used for industrial purposes.
The United States is the largest market for polished diamonds and diamond jewelry, representing about 50% of the global market. Other key markets include Japan, Italy, India, China, and the Gulf states. In 2022, the total annual trade volume of polished and rough diamonds reached approximately $120 billion, solidifying diamonds as one of the world’s most traded commodities.
The Financing Gap
Historically, the diamond industry relied heavily on bank financing, which saw significant growth between 2002 and 2013. However, the 2008 credit crisis and subsequent regulatory changes led to a substantial withdrawal of traditional banks from the market. As a result, available credit decreased from $16.8 billion in 2013 to approximately $6.0 billion in 2024, with further declines expected. This retreat has created a financing gap, presenting a unique opportunity for alternative lenders.
Alternative credit providers like Del Gatto Finance Group are uniquely positioned to fill the financing gap. With deep industry expertise and strong relationships in this reputation-based sector, Del Gatto offers institutional investors access to a niche, uncorrelated market with high barriers to entry. Our strategy combines collateral-backed lending with rigorous risk management practices, providing a secure investment vehicle with low volatility, liquidity, and strong collateral coverage.
Del Gatto
Finance Group
A Secure Investment with Upside Potential
The Del Gatto Finance Group (DGFG) specializes in providing financing secured by the physical possession and ownership of medium and large-sized gem-quality diamonds and high-end jewelry. This approach mitigates risk and ensures strong collateral coverage, with loan-to-value (LTV) ratios around 60% of liquidation value. The group's strategy is designed to deliver private credit returns while offering attractive liquidity terms, making it an appealing option for accredited and qualified investors.
DGFG operates in a market that, while opaque to outsiders, is recognized by insiders for its profitability and reliance on trusted, long-term relationships. With over 150 years of combined experience in the diamond industry, DGFG’s strong reputation allows it to secure collateral on favorable terms, enhancing both investment security and potential returns. Our borrowers include suppliers to some of the world’s most prestigious and renowned luxury brands.
A Persistent Opportunity
The retreat of commercial banks from the diamond industry has created a significant, ongoing opportunity for DGFG. By capturing just 10-15% of the previous loan supply, DGFG could unlock a lending opportunity valued at $1.5 – 2.0 billion. For institutional investors seeking stable returns in a non-correlated asset class, the Del Gatto Finance Group presents a secure and compelling investment opportunity.
Discover the Advantage
The global diamond industry, with a history spanning centuries, remains one of the most profitable and resilient markets, with annual trade volumes reaching $120 billion in 2022.
Bank financing for the diamond industry has declined by over 60% since 2013, creating a multi-billion-dollar lending opportunity for alternative credit providers.
Diamonds have historically ranked as the 7th or 8th most widely traded currency. Diamonds exhibit "dollar-level" volatility, providing a unique investment characteristic.
Generations Y and Z are expected to drive up to 130% of the luxury market's growth, ensuring sustained demand in the diamond industry for years to come.