Ranger chief signals increase in size next year

The vehicle has deployed 19 percent of its capital since it listed in May.

Ranger Direct Lending Fund, a London Stock Exchange-listed fund which extends debt to direct-lending platforms, could increase in size next year, the company said.

Around 19 percent of the £135 million fund, which only listed on 1 May, had been allocated across eight different direct lending platforms by the end of June, according to its half-yearly financial report.

Management envisages that the company, which is yet to pay a dividend, will be almost fully invested by the end of 2015.

To date, most of Ranger’s investments have been in the US, but the firm said it hoped to make more progress outside America in the coming months.

“The demand for borrowing from SMEs continues to be strong and so we hope to be in a position to consider increasing the size of the company as we move into 2016,” chairman Christopher Waldron, said in a statement.

The company issued 13.5 million shares at 1,000 pence each in its initial public offering, valuing the company at £135 million by market capitalisation. The net asset value of the shares has grown marginally from $15.14 per share when it listed to $15.16 per share on 30 June.

Additionally, the share price traded at 1060 pence on 30 June, a 6 percent premium over the issue price.

When fully invested, Ranger will target a 10 percent dividend yield per annum based on the US dollar equivalent of the £10 share price.

Meanwhile, VPC Speciality Lending Investments, another LSE-listed vehicle, declared its first interim dividend of 0.9 pence per share for the period ended 30 June. The dividend will be paid on 3 September to shareholders on the register as of 21 August.

The company, managed by US private debt lender Victory Park Capital, designated all of the interim dividend for the period ended 30 June as an interest distribution to shareholders. In doing so the company is taking advantage of UK tax treatment by “streaming” income from interest-bearing investments into dividends that will be taxed in the hands of shareholders as interest income.

Investors which are eligible to receive the distribution without deduction of UK tax can do so by filling out a form on VPC’s website.