Direct lending fund raises another £22.2m

By Daniel Lanyon on Wednesday 28 March 2018

Editor's PickAlternative Lending

Demand for private debt assets continues grow with direct lending an increasingly favoured route.

The RM Secured Direct Lending fund has reached more than £100m of assets following a new cash raise.

The investment trust specialises in secured lending. It recently announced that it was raising money with both a C Share raise as well as an Initial Placing of ZDP Shares (the "Initial ZDP Placing").

The fund launched back in December 2016 when it raised £50.6m from a host of institutional investors including the Church of England as well as several wealth managers and funds of funds

RM’s fund raised another £30m through a C share issue in October 2017 and more recently announced they were raising more money.  Following approval today the fund has raised a total of £11,329,363 through C shares and a further £10,869,950 of ZDP Shares bringing its cumulative assets to more than £100m.

It has clocked up a 4.2 per cent dividend pay out last year beating its 4 per cent target.

James Robson, chief investment officer of RM Funds, the portfolio's investment manager, says the portfolio has raised and deployed funds quickly but there exists a strong pipeline of deals ahead. 

“We continue to see a number of bespoke, higher-yielding lending opportunities to established businesses that offer attractive returns profiles across a number of sectors."

The fund invests in secured debt of UK SMEs and mid-market corporates and is currently trading on a 4.4 per cent premium.

It is expected dealings on the London Stock Exchange will commence on 3 April 2018. 

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