UK-based alternative lender RM Capital is expanding into providing loans to businesses outside of the UK after the firm completed its first dividend payment of 2p per share last month.
The firm provides secured loans between £2.5 million ($3.3 million; €2.9 million) and £10 million through its RM Secured Direct Lending (RMDL) vehicle – a position typically too small for traditional direct lenders and too large for peer-to-peer lenders.
Listed on the London Stock Exchange at the end of December, the vehicle is targeting a yearly dividend target of 6.5 percent for the end of 2018, but is seeking a reduced return figure of 4 percent in its first year.
The firm has underwritten 18 loans since committing a total of £58 million since its listing. The average yield across the portfolio is 7.72 percent with a weighted average life of 3.89 years.
“In the last six months since we listed, we have successfully delivered against our strategy. This has been another positive and active quarter during which we raised and deployed new funds, and grew the portfolio,” said James Robson, chief investment officer of RM Capital.
He added: “We also paid our maiden dividend, as part of our objective to generate sustainable dividends.”
Latest investments include a six-year £4.7 million loan provided to UK critical service provider Voyage Care with an expected yield of 8.5 percent and three investments totalling £9.2 million made to energy companies.