Direct lending investment trust announces maiden dividend

By Daniel Lanyon on Monday 19 June 2017

Alternative Lending

The RM Secured Direct Lending fund launched back in December and is now paying out.

RM Secured Direct Lending fund has declared its maiden dividend of 0.2p per share.

The fund looks to make investments in the £2m-£10m ticket range of loans it originates itself, following “rigorous” in-house credit analysis. These loans are smaller than those provided by the larger institutional direct lenders such as M&G, Alcentra, BlackRock and of course traditional banks.

The investments, analysts at N+1 Singer note, are “larger and too complex” the P2P platforms and funds as P2P Global Investments and Funding Circle.

The closed-ended portfolio other Alternative Credit trusts such as asset backed lenders such as SQN Asset Finance, GCP and Sequoia.

The managers of investment trust, say its first dividend suggests this remains on track to achieve its stated annualised dividend yield target of 4 per cent p.a based on its IPO price in its first year. This is expected to rise to 6.5 per cent thereafter for the year to 31 December 2018.

The fund raised £50m at its initial public offering (IPO) back in December 2016. It has now deployed all of these funds and raised £7m more which it is nearing full deployment. More recently the trust has entered into negotiations to establish a revolving credit facility with a bank.

The portfolio now includes a £3m loan to the development of a new luxury hotel L’Oscar, in Holborn, London as well as £5m loan to a student accommodation developer.

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Companies in this Article:

Funding Circle

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