RANGER Direct Lending (RDL) has responded to a second public letter from Oaktree Capital Management, rejecting the firm’s advice to hold off on making any changes to its investment management arrangements.
RDL’s board of directors confirmed that it would continue to review the fund’s management, but added that it would seek shareholder approval on any final decision.
“Ranger announced on 29 January that its management engagement committee would be reviewing RDL’s management arrangements,” the letter read.
“Prior to announcing the review, the terms of reference were set in writing to include that any new investment management arrangements for the company would be conditional on shareholder approval, notwithstanding that the appointment of a new investment manager, of itself, does not require shareholder approval.
“The board sees no need to change that approach including in the context of the views and shareholding of Oaktree.”
Earlier in the day, Oaktree had called for a full shareholder vote to decide RDL’s future, adding that any investment management changes should also be cleared by the shareholders.
“It would raise significant governance questions if the board were to adopt a new long-term investment management arrangement – thereby locking in new fees and potentially risking disruption to the existing portfolio – without allowing all shareholders a voice on the matter in an open and transparent way,” Oaktree said.
RDL added that a further announcement on management arrangements and investment policy will be made shortly.