Small hit to NAV as VPC Speciality Lending sells Avant – In line with the previously stated strategy of reallocating capital from marketplace lending to balance sheet lending, VPC Speciality Lending has announced that it has sold the vast majority of its Avant marketplace loans, excluding the securitisations. The loans sold represented 7.6% of its NAV as at 31 August 2017. The impact of the sale on the NAV, which they estimate to be approximately -0.53%, will be reflected in the October NAV announcement.
They say that, portfolio sales such as the sale of the Avant loans have helped accelerate their strategy of reallocating capital away from marketplace lending investments into balance sheet investments, which consistently have generated higher returns with lower volatility. Taking account of the Avant marketplace loan sale, marketplace loans accounted for 7.8% of the NAV as at 31 August 2017. They expect to re-invest substantially all of the Avant sale proceeds into balance sheet investments in the near-term. They also say that they will continue to seek opportunities to further reduce exposure to marketplace loans where it is accretive to shareholder value.
VPC Speciality Lending made an £11.7m balance sheet loan to Avant in April 2015.
VSL : Small hit to NAV as VPC Speciality Lending sells Avant