VPC offloads Avant loans as part of shift from marketplace lending
VICTORY Park Capital (VPC) Specialty Lending Investments has offloaded the majority of its loans from US personal loans platform Avant.
The alternative lending investment trust said in a portfolio update on Monday that the move is part of its strategy of shifting from marketplace to balance sheet lending.
The investments sold represent 7.6 per cent of the company’s net asset value as at 31 August 2017.
The London-quoted company estimates the sale will push its NAV down by 0.53 per cent this month.
“Portfolio sales such as the sale of the Avant loans have helped accelerate the company’s strategy of reallocating capital away from marketplace lending investments into balance sheet investments, which consistently have generated higher returns with lower volatility,” the firm said in a stock exchange announcement.
“The company will continue to seek opportunities to further reduce its exposure to marketplace loans where it is accretive to shareholder value.”
The investment trust’s NAV return so far this year has been 3.21 per cent and it is currently trading on a discount to NAV of 16.6 per cent.
It announced last year that it was winding down its P2P portfolio to manage losses.