INVESTMENT OBJECTIVE AND STRATEGY
Ranger Direct Lending Fund’s investment objective is to seek to provide shareholders with an attractive return, principally in the form of quarterly income distributions, by acquiring a portfolio of debt obligations (such as loans, invoice receivables, and asset financing arrangements and which are together referred to as “Debt Instruments”) that have been originated or issued by direct lending platforms.
Direct lending platforms are an increasing source of liquidity, in particular for small and medium-sized enterprises and consumers. Although there is no uniform approach as to how a platform conducts its business, each direct lending platform will typically focus on a particular category of the borrower and/or underlying industry asset class. By investing in Debt Instruments originated or issued by a number of different Direct lending platforms, Ranger Direct Lending Fund plc (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 Instruments relate and the size of the individual Debt Instruments.
DIRECT LENDING OPPORTUNITIES
The Company believes that Debt Instruments originated or issued by direct lending platforms are an attractive and growing asset class that has the potential to provide higher returns for investors than other fixed-income products.
The Company also believes that by investing in direct lending opportunities instead of peer-to-peer opportunities, the total number of asset classes available, and the numerous existing platforms in each asset class will be increased.
Direct lending touches almost every lending asset class, including:
- Real estate;
- insurance; and
- specialty finance,
And many variations of small business lending including:
- Lines of credit;
- Term loans;
- Merchant cash advances; and
- Term loans;
This wide variety of opportunities allows the Company to potentially reduce risk through investment diversification while also potentially achieving higher returns by investing in the best performing direct lending asset classes.