VPC Specialty Lending fund extends share buyback programme

By Daniel Lanyon on Tuesday 20 June 2017

Alternative Lending

The closed-ended fund will continue to put cash towards closing its discount.

The £354m VPC Specialty Lending investment will continue with its share buyback programme until further notice, according to regulatory filings.

The closed-ended fund, which is one of the largest in the P2P/Alternative Credit market after P2P Global Investments, had a torrid 2016 that saw its share price move to a substantial discount to its net asset value (NAV). This peaked in 2016 at 27 per cent before the share buyback programme kicked off. In 2017 it began a period of transformation in order to close the discount and improve performance.

The firm said at the end of 2016: “The company will commence a share buyback programme in light of the significant disparity between the Company's share price and its Net Asset Value (NAV) per share. In this regard, the Board announces that is has engaged Jefferies International Limited as agent to execute share buy-backs on behalf of the Company,” the firm said in a statement.

Andrew Adcock, chairman, said: "we believe that a share buyback programme is a sensible deployment of our capital and we are taking this step as part of our wider strategy to improve returns for our shareholders."

This strategy seems to have broadly worked with the discount today nearer 12 per cent and an uplift in the share price year-to-date. Now the investment manager said has said in another statement that buy-backs will continue until further notice.

“Further to the renewal of the Company’s authority to make market purchases of its own shares at the AGM on 13 June 2017, the Company announces its share buy-back programme conducted by Jefferies International Limited will be continued until further notice.”

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