VPC Specialty Lending Investments (VSL), the London-listed investment trust focused on making loans via marketplace lending platforms, has announced that it will raise fresh capital by issuing fresh C shares in September. The firm did not reveal how much it would raise to finance further investment.
VSL has invested 87 percent of the £200 million ($315 million; €282 million) it raised in March, the firm said. VSL did not upsize the listing to £250 million at the time of the initial listing, though it had the option to do so, as reported.
The UK investment trust structure allows firms to offer secondary C shares at any time to raise fresh capital. To avoid diluting existing shareholders, the capital raised from the new C or conversion shares is held separately for a specified period to allow the funds to be invested. The C shares are then exchanged for a proportional number of ordinary shares dictated by the net asset value of the existing portfolio and new portfolio underlying the C shares.
VSP is advised by Chicago-based Victory Park Capital. It invests via 14 different platforms including US-based OnDeck, the US subsidiary of UK small business lender Funding Circle and Upstart Network, an online personal lender established by ex-Google employees.
VSP has an annual dividend target of eight pence per ordinary share. In tandem with the C share announcement, the firm said that it should announce its initial dividend in August with the yield expected to meet the target.
Victory Park Capital is also raising two closed-ended funds; VPC Unleveraged Private Debt Fund and VPC Special Opportunites Fund III. The unlevered private debt vehicle is targeting $400m while the special opportunities fund is seeking $650 million, as reported by PDI.
Victory Park is a privately-held investment advisor focused on mid-market companies. The firm has closed 62 deals worth $3.8 billion since it was founded in 2007, according to its website. It began investing in marketplace lending in 2010 and has relationships with 14 different platforms. It is headquartered in Chicago with offices in Los Angeles, New York and San Francisco.