jjc
Member of DD Central
Posts: 414 
Likes: 632
|
Post by jjc on Apr 1, 2015 19:55:06 GMT
Interesting. Looks strongly weighted to US platforms, P2C the brunt, some nice niches & also higher risk borrowers (which provide the margin to offer the 8%-10% returns). They take whole loans & underwrite, pay quarterly divs. In some ways could be the type of liquid vehicle that could compete with AC’s Investment Accounts / GEIA for lenders’ funds, but not sure how much I’d want to be holding in a US downturn.
Max exposure of 20% / platform (12 listed for now). AC’s £150m (over 5yrs) about 10% of agreed funding. Nowt arrived yet it seems, can’t be long (would help deal flow).
|
|
pikestaff
Member of DD Central
Posts: 2,187
Likes: 1,546
|
Post by pikestaff on Sept 17, 2015 15:48:40 GMT
Currently raising more funds (looking for £200-£500m) and being advertised to me by my broker. The offer's been open for 10 days and is expected to close 28/9. Target yield 8% and target total return 10% once fully invested (neither guaranteed). Minimum subscription £1,000. The prospectus is here: vpcspecialtylending.com/vpc-documents-2/ |
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Sept 17, 2015 15:57:52 GMT
And they seem to get warrants for every loan they take from AC, was that in the AC prospectus?
|
|
pikestaff
Member of DD Central
Posts: 2,187
Likes: 1,546
|
Post by pikestaff on Sept 17, 2015 16:48:36 GMT
From the current prospectus:
"Hedging policy
The Company hedges currency exposure between Sterling and any other currency in which the Company’s assets
may be denominated, including US Dollars and Euros.
The Company, to the extent it is able to do so on terms that the Investment Manager considers to be commercially
acceptable, seeks to arrange suitable hedging contracts, such as currency swap agreements, futures contracts,
options and forward currency exchange and other derivative contracts (including, but not limited to, interest rate
swaps and credit default swaps) in a timely manner and on terms acceptable to the Company."
However, it appears that they do not hedge 100%, see this extract from the June 2015 accounts in the prospectus.
|
|
kermie
Member of DD Central
Posts: 691
Likes: 462
|
Post by kermie on Sept 17, 2015 18:24:32 GMT
Do I interpret that correctly - in that retail lenders on AC won't get a look-in at the VPC loans? Or will VPC be used as underwriters, and then obliged to release some portion of the loan to AC retail lenders?
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Sept 17, 2015 19:39:50 GMT
Do I interpret that correctly - in that retail lenders on AC won't get a look-in at the VPC loans? Or will VPC be used as underwriters, and then obliged to release some portion of the loan to AC retail lenders? I think that word whole says it all. So yes and no respectively.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Sept 17, 2015 19:47:28 GMT
Do I interpret that correctly - in that retail lenders on AC won't get a look-in at the VPC loans? Or will VPC be used as underwriters, and then obliged to release some portion of the loan to AC retail lenders? I think that word whole says it all. So yes and no respectively. Then AC really need to ramp up their deal flow if there's going to be anything left for us!
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Sept 17, 2015 19:51:34 GMT
Do I interpret that correctly - in that retail lenders on AC won't get a look-in at the VPC loans? Or will VPC be used as underwriters, and then obliged to release some portion of the loan to AC retail lenders? 30m a year (on average... Hopefully backend weighted). Can someone remember the YTD loan figure ?
|
|
