Direct lending fund raises another £22.2m

By Daniel Lanyon on 28th March 2018

Alternative Credit

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

Direct lending fund raises another £22.2m

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.