Ranger Direct Lending’s board rejects wind down calls

By Daniel Lanyon on 25th April 2018

Alternative Credit

The fund has seen its second largest shareholder call time.

Ranger Direct Lending’s board rejects wind down calls
Image source: https://goo.gl/dFeRSh

Behind the scenes Oaktree Capital Management, a $100bn specialist investment manager, has been trying to have the Ranger Direct Lending fund sliced and diced and yesterday it made its views public.

As the second largest shareholder with an $18.6m stake in Ranger, the market heard its demands – which you can read about here – in an open letter.

Ranger’s board, however, has rejected the idea. It said:

“The Review Process has considered the possibility of a full or partial winding down of the Company's activities and returning cash to shareholders.  The Board has a duty to act in the interests of all shareholders and, therefore, must seek to achieve the best capital value for the Company's assets and protect dividend flows."

"In the view of the Board, Oaktree's approach will accomplish neither of those objectives and lead to an extended period of uncertainty for shareholders. In respect of capital value and dividend flows the Board reiterates its view that Oaktree's approach is driven by its own short-term interests.”

Analysts at Numis say it is “interesting” that the board have dismissed the possibility of a wind-down, as other ‘value orientated’ shareholders have been building up positions.

Invesco owns 27.7 per cent, Oaktree 18.6 per cent, Lim, Advisors 9.2 per cent Lim Credit Suisse also 9.2 per cent and City Financial with 6.7 per cent. 

“We would expect a strengthening, or change, in management team, given that the ill-fated investment has led to concerns about Ranger’s due diligence process,” Numis added.

Comments

AltFi Berlin Summit 2019

AltFi is coming to Berlin this Winter for our first annual Summit in the City.

18th November 2019