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Shareholder urges P2P fund to shut down rather than pursuing new secured loan strategy
Thursday 10 May 2018 Author: Tom Sieber

Troubled peer-to-peer (P2P) investment trust Ranger Direct Lending (RDL) continues to reject calls from one of its largest shareholders to be wound up as it looks to pursue a new approach by investing in secured loans.

Backed by noted Invesco fund manager Mark Barnett, Ranger listed in April 2015 and is managed by Ranger Capital in Texas. It hit a big snag when its investment in a US fund was affected by the bankruptcy of Chicago consumer loan website Argent Credit. It is now languishing at a near-20% discount to net asset value.

The investment trust wants to replace Ranger Capital with Ares Management and pursue a new approach despite calls from 19% shareholder Oaktree Capital to initiate wind-up proceedings.

Ranger Direct Lending’s board has hit back at Oaktree and another investor on the register which has been a vocal critic of its approach, LIM Advisers, accusing them of looking to ‘impose their own agenda’.

Stockbroker Numis notes investors are normally offered an exit route when a fund is reconstructed but notes this is not the case here.

It comments: ‘The appointment of an experienced, well-resourced manager with access to deal-flow would be a positive development for the fund.

‘However, we agree that there is currently a lack of detail on the future strategy and that any transition may take a substantial time to implement given the current management’s 12-month notice period.’ (TS)

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