VICTORY Park Capital (VPC) Specialty Lending Investments reported an income return of 0.58 per cent in April, its fourth consecutive month-on-month increase.
The alternative finance-focused investment fund said that its income was predominantly from its balance sheet loans, which continued to perform strongly.
The London-listed trust announced last November that it was winding down its peer-to-peer lending portfolio in favour of balance sheet loans, after P2P losses triggered substantial writedowns.
April’s capital return was negative 0.52 per cent, the company said on Thursday. P2P loans represented negative 0.49 per cent, with the sale of its Funding Circle US and Upstart loan portfolios accounting for negative 0.17 per cent.
Balance sheet investments equated to 59 per cent of the fund’s net asset value at the end of April.
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“The company’s balance sheet investment pipeline remains strong and we expect that the available cash will be deployed in the medium term,” it said.
“At the same time, the company’s allocation to marketplace loans continues to decline, in line with the company’s stated strategy, reducing in April by one per cent to 21 per cent, and to 16 per cent pro forma for the portfolio sales in May.”