Investment Update

RNS Number : 2592D

GLI Alternative Finance PLC

23 October 2015

 



23 October 2015

GLI Alternative Finance PLC

(the "Fund")

Investment Update

GLI Alternative Finance PLC (LON:GLAF), a closed end fund managed by GLI Asset Management Limited (the "Manager") investing in a diversified portfolio of SME finance assets, today announces that the Fund is now fully invested. Negotiations are ongoing with regards to leverage for the Fund.

The Fund invests in loans that are principally originated through the lending platforms that the Manager is strategically partnered with, which are currently originating £20-30 million of loans monthly and have the potential to originate materially greater volumes. The Manager expects lending volumes to grow in line with sector growth of approximately 5-10 per cent. per month. The Manager has also identified opportunities to put additional funds to work through other platforms.

The Fund expects to declare its first dividend in November, for payment during December.

Fund metrics as at 30 September 2015 (on invested funds)

Duration Cash 25.5% 0-6 months 10.5% 6-18 months 17.6% 18-36 months 38.7% >36 months 7.7%	Jurisdiction UK 71.2%* Offshore Britain (including Channel Islands) 18.4% US 7.4% Europe 0.2% Rest of the World 2.8%
Security Secured 74.0% Unsecured 26.0%*	Nature of loan Cash 25.5% Term lending 45.8% Bridge finance 4.2% Working capital 24.5%

* Percentage includes cash

Top ten holdings
Loan	Interest rate	Maturity	Weighting	Type
Loan 1	8.00%	26/12/2016	3.80%*	Secured term lending
Loan 2	9.50%	04/05/2018	2.21%	Secured term lending
Loan 3	9.50%	23/03/2018	1.95%	Secured term lending
Loan 4	9.75%	02/07/2018	1.91%	Secured term lending
Loan 5	10.50%	18/12/2016	1.90%	Secured term lending
Loan 6	9.95%	12/03/2016	1.90%	Secured term lending
Loan 7	10.0%	04/12/2015	1.90%	Secured term lending
Loan 8	8.73%	06/07/2016	1.77%	Secured term lending
Loan 9	8.00%	25/06/2016	1.71%	Secured term lending
Loan 10	7.61%	08/09/2017	1.45%	Secured term lending

* This loan has been partially sold since 30^th September in accordance with the investment restrictions, and noted within the prospectus as forming part of the initial portfolio transfer. The holding currently represents 2.38% of the Fund.

Outlook

As the Fund grows in size, the Manager expects to grow the portfolio in the US and Europe, as well as the proportion invested in working capital finance.

The Manager believes that the addressable SME finance market for alternative finance platforms continues to grow. The Manager also sees an abundance of opportunities to secure yields in line with the Fund's target return and dividend yield of 8* per cent. and is encouraged that default rates remain at historic lows.

* This is a target dividend only which is based on various assumptions which may or may not materialise. There can be no guarantee that the dividend target will be met.

-ENDS-

Contact

For further information, please contact:

GLI Alternative Finance Plc

c/o Camarco

GLI Finance Limited

Geoff Miller

[phone]

[phone]

Camarco

Ed Gascoigne-Pees

[phone]

[phone]

About GLI Alternative Finance PLC

GLI Alternative Finance PLC is an investment trust managed by GLI Finance Limited ("GLI") investing in a diversified portfolio of SME finance assets that is listed on the Main Market of the London Stock Exchange. The investment objective of the Fund is to provide shareholders with attractive risk adjusted returns through investment in a globally diverse range of SME loans assets. 

As the loans invested in are principally originated through the lending businesses that GLI is strategically partnered with, GLI has direct insight into each business, its underwriting process, risk management and the results thereof.

 

END

 

 

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