RM Secured Direct Lending (RMDL), the specialist lender to UK businesses, has launched a new fund raise to invest in its pipeline of opportunities, currently more than £150m.
Having grown the portfolio to £86.5m in just over a year, RMDL said that it continues to see opportunities to grow lending to SMEs underserved by traditional banks.
Listed in December 2016, RMDL has made 23 secured debt investments diversified across 13 sectors with £86.5m of commitments across the Ordinary Share and Existing C Share classes.
The company has previously undertaken two successful fundraisings, with the funds deployed into new debt investments. Target sectors include real estate, renewables and healthcare. It has recently reduced its exposure to consumer discretionary spend.
RMDL said that it has invested in a number of high quality businesses, often alongside other lenders including OakNorth Bank and Beechbrook, that meet its investment criteria, including good visibility over cash flow and earnings and strong management teams.
Loans are supported by tangible, bespoke security packages, predominantly secured against contracted, predictable medium to long-term cash flows and/or physical assets. The majority of individual loan values or transactions range from £2m to £10m with maturities of approximately two to ten years. Where possible the Company aims to provide a degree of inflation protection through index-linked returns.
A prospectus has been published which outlines the in relation to a proposed Offer for Subscription, Initial Placing and Initial Intermediaries Offer.