P2P Global targets 15p quarterly dividend next year – P2P Global has presented the results of its strategic review. The merger of the managers completed on 15 September, creating an asset manager (Pollen Street Capital) with gross assets of over £2bn. They have reviewed existing loan origination arrangements and have started repositioning the portfolio towards, what they believe will be, high risk adjusted return opportunities. They say that they’ll have greater control of underwriting and servicing.
Two thirds of the assets are now exceeding target returns and they say they have a £400m pipeline of assets to help reposition the rest of the portfolio. They have “increased confidence” of hitting their target 15p per quarter dividend target by Q2 2018 and will pay 12p per quarter in advance of that.
There will be a 5% hurdle on the performance fee from January 2018.
They will step up share buy backs in an attempt to narrow the discount but the NAV may take a hit in January as they adopt new accounting rules.
Simon Champ stays on as a partner of Pollen Street Capital but the team comprises six people, including Abror Ismailov.
P2P : P2P Global targets 15p quarterly dividend next year