VPC Specialty Lending Investments PLC (LSE:VSL) states it continues to execute on its investment objectives and delivered NAV returns of 0.69% on the ordinary shares and 1.49% on the C shares for the month of November. Additionally, on 12 November 2015, the Company declared an interim dividend of 1.89 pence per ordinary share for the three month period to 30 September 2015.
VPC now has exposure to 21 different online lending platforms that focus on both consumer and SME lending. This spans markets with investments being in companies operating in the UK, UK, Europe and Australia. The top 5 platforms in the VPC portfolio includes: Avant, Funding Circle, Prosper, Upstart and Borro Group. VPC states it sees a strong pipeline going forward. The Company intends to generate attractive returns for shareholders consisting of dividend income and capital growth via their investments.
On November 19th, VPC closed a securitisation transaction selling $175 million in notes backed by Avant loans totalling $195 million. The company explained this action may “temporarily reduce the monthly return in the first few months after closing the transaction.”
Also in November, the VPC made an initial investment pursuant to an AUD $100 million credit facility commitment to and equity investment in zipMoney. This Australia-based consumer lender provides point-of-sale financing and digital payment services across a number of sectors. The Company received stock and options at a discount to the market value as a part of the transaction. The markup of the stock and options contributed to the significant increase in the C share NAV in November.
As of the end of November 2015, consumer exposure accounted for 56% of the invested ordinary share portfolio and 66% of the invested C share portfolio, while small business exposure accounted for 44% and 34% of the ordinary and C share portfolio, respectively. Investments in U.S. Platforms accounted for 75% of the invested ordinary share portfolio and 66% of the invested C share portfolio, with the remainder being predominantly UK-based loans. As part of these investments, the Company has equity exposure to14 Platforms through equity securities or convertible notes.
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