With the portfolio’s arbitration proceedings moving apace, one investor is optimistic on its longer term potential
The £213m Ranger Direct Lending fund has seen value investor Oaktree Capital increase its stake in the troubled portfolio to more than 18 per cent of its total share capital issuance.
Oaktree already had more than 12 per cent of Ranger’s stock but, following a transaction last week (28 March), it has increased its stake by 6.24 percentage points.
The Los Angeles-based asset manager holds Ranger within its Oaktree Value Equity Holdings LP.
It would seem the sale of stock was made by Bank of Montreal who held Ranger in its multi-asset portfolios within its subsidiary arm BMO Asset Management. It sold 5.19 per cent of the total share capital of the closed ended fund - bring its holding - from 11.43 per cent to 6.24 per cent back in January. Now it is zero.
The Ranger fund, a strong performer in 2016, suffered in 2017 owing to problems with its largest holding, the Princeton Alternative Income fund. In the closing weeks of 2016 it was revealed that a direct lending platform in the US called Argon Credit was collapsing. The Ranger Direct Lending portfolio had $28m of indirect exposure to Argon through the Princeton fund. Princeton filed for bankruptcy last month.