Ranger Direct Lending’s investment objective is to seek to provide shareholders with an attractive return (target is 12-13% gross), principally in the form of quarterly income distributions (targeting 10% yield on the IPO price), by acquiring a portfolio of debt, such as loans, invoice receivables and asset financing arrangements, that have been originated or issued by businesses that serve as originators and distributors of this debt but are direct lending platforms rather than traditional retail or investment banks. Up to 10% of the portfolio may be invested in the equity of these direct lending platforms.
By investing in debt originated or issued by a number of different direct lending platforms, the Company will achieve a diversified portfolio, including by reference to the identity and type of borrower, the underlying sub-asset class to which the debt relates and by the size of the debt. Around 75% of this debt will be secured against commercial assets or personal guarantees. The company can borrow up to 50% of net asset value.
You can access the fund’s website here