London-listed fund RM Secured Direct Lending completed two deals in the last quarter and is running an average yield of 7.65 percent across a portfolio of 17 loans.
Recent results from the firm suggests the fund is on track to reach the 2017 dividend yield target of 4 percent, which it plans to ramp up to 6.5 percent by the end of 2018. The existing portfolio has an average life of 3.63 years.
“Having substantially committed the initial IPO proceeds, it is on target to achieve its 4 percent dividend for the first full year since the initial public offering, rising to 6.5 percent for the second full year,” the firm said in a statement.
The market capitalisation of the fund stands at £58.4 million ($74.6 million; $66.7 million). Last month, the fund issued 7 million ordinary shares priced at 101.25 pence raising a further £7 million in capital. The fund was floated in December, raising £50 million on the IPO.
The fund invests in tickets ranging between £2 million and £10 million – below the radar of many private debt funds, but above the marketplace lending market. Recent investments include a £3 million investment in the development of luxury hotel L’Oscar in central London and £5 million in a firm that provides student accommodation services.
The fund invests across the capital structure, with a focus on senior secured products, and a range of sectors including food and drink, healthcare and property.