SME Loan Fund pivots to origination with manager change

The fund’s new manager plans to adds more direct lending to the portfolio of the offering.

SQN Capital Management has taken over as manager for the SME Loan Fund, a publicly-traded fund investing in loans to small businesses via various technology platforms. 

While the fund to-date has gained exposure to loans via these platforms, its new management team wants to alter this, adding the fund’s own loan origination to the mix. “I no longer want to be tied to particular platforms, or indeed do all business through platforms,” Neil Roberts, managing director at SQN, told PDI. He added SQN manages other portfolios consisting of loans provided on a direct-lending basis. 

According to its most recent factsheet published on its website, the SME Loan Fund has approximately £53 million (€62 million, $66 million) in assets under management.

SQN Capital Management is replacing Amberton Asset Management as manager on the fund. A spokesman for Amberton did not return requests for comment by time of publication. 

The SME Loan Fund was floated in 2015, providing publicly-traded shares to potential investors, according to Roberts. The fund invests in loans to SMEs via what it describes as “alternative finance platforms.” 

The offering is predominantly UK-focused, though it may not have more than 70 percent of its portfolio invested in the UK. At least 30 percent of the fund must be invested outside of the UK according to a global mandate.