Ranger Direct Lending Fund Plc Completes IPO On London Exchange
Fund targets attractive annual returns by investing predominantly in secured loans originated by established and emerging direct lending companies
DALLAS, May 6, 2015 /PRNewswire/ -- Ranger Direct Lending Fund Plc, a newly formed investment trust focused on investing in loans originated by direct lending platforms, successfully completed its IPO in London Friday. The Company is overseen by Dallas-based Ranger Capital Group, and will trade on the London Stock Exchange under the ticker RDL. The offering raised approximately $200 million (£135m) at an initial price of £10 per share. Shares closed up 4% on the first day of trading.
Scott Canon, CEO of Ranger Capital Group and a Director of the Fund is pleased that investors have recognized the opportunities presented by the direct lending market:
"We are delighted to have successfully completed the launch of the Ranger Direct Lending Fund and the level of support secured from investors underlines the unique investment opportunity the Fund provides. We take great pleasure in welcoming our new shareholders and look forward to deploying the proceeds enabling us to invest in debt obligations generated by established and emerging direct lending platforms."
Ranger Direct Lending Fund Plc will invest in a diversified portfolio of debt obligations that have been originated or issued by a variety of direct lending platforms. Direct lending companies originated over $50B in different types of small and medium enterprise (SME) loans last year by servicing clients that are underserved by traditional banks. The market opportunity has grown rapidly since the financial crisis as bank lending has become more regulated and banks have become more focused on larger loan amounts.
The Fund managers expect to invest across multiple loan categories and industries including small business lending, real estate, auto, medical and specialty finance. Secured loans (backed by commercial assets and/or borrower personal guarantees) are targeted to represent 75% of the loan portfolio. The managers expect an average loan size of approximately $100,000 with average loan durations below two years.
"We have a strong group of direct lending platform partners we are already working with and we will continue to add established direct lending opportunities as they present themselves," stated Bill Kassul, Partner in the Ranger Direct Lending Fund. "Direct lenders for the most part have been around for much longer than peer-to-peer lenders. Many of these organizations are experienced companies with proven underwriting models that have been successful through the financial crisis."
Trading in the Fund on the London Stock Exchange began on May 1st. Shares change hands in British pounds and the offering was advised by Liberum Capital, a London-based investment bank.
About Ranger Capital Group
The Ranger Direct Lending Fund is advised by Ranger Alternative Management II, LP, an investment adviser registered with SEC which is controlled by Ranger Capital Group. Ranger Capital Group is an employee-owned holding company which hosts a variety of registered investment advisers offering traditional and alternative investment opportunities to institutional and high net worth individual investors. Currently, Ranger affiliated investment advisers manage over $3 billion in assets. Additional information regarding Ranger Capital Group and its affiliated investment advisers may be obtained on-line at www.rangercap.com.
SOURCE Ranger Capital Group
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