Secured debt investment trust RM Direct Lending reported its maiden quarterly results on Wednesday, after committing around £40 million in loans to companies across nine sectors.
The company announced that it had delivered on its stated strategy since its initial public offering in December of last year. Their NAV per share stood at 97.31p as of 31st March 2017, with Total Net Assets at £48.9 million.
The Company’s portfolio now has expanded to a total of 11 loans, lent to borrowers ranging from a healthcare group with a strong market position in the behavioural health care sector, a UK high street retailer and a large UK and European forecourt provider.
The current yield on these investments is around 7.70 percent, rising to 8.13 percent when fully drawn with a weighted-average life of 3.46 years.
Based on the current portfolio, the company announced that it expects to achieve its stated annualised dividend yield target of 4 percent p.a in its first year, rising to 6.5 percent thereafter for the year to 31 December 2018.
The group’s investment arm, RM Capital Markets, is currently in negotiations to establish a revolving credit facility with a leading bank and is actively considering raising additional funds from investors in the near future.
James Robson, Chief Investment Officer of RM Capital Markets Limited, said:
“One of our core priorities was to deploy the funds quickly and into attractive assets, and we have done exactly that.
“There is significant demand from businesses of varying sizes, and across multiple sectors to access funding solutions that meet their specific financing needs and I am confident in our ability to continue to source and progress our pipeline of secured lending opportunities that will enable us to deliver on our investment objective of generating attractive and regular and attractive dividends for our shareholders.”