Ranger Direct’s NAV sees largest fall in almost two years

BELEAGUERED investment trust Ranger Direct Lending (RDL) saw its net asset value (NAV) plunge by 1.19 per cent in July – its third consecutive month of declines.

The London-listed fund, which invests in debt through alternative lenders, cited loan write-offs, higher loss reserves and legal expenses from its ongoing dispute over its Princeton holding as key factors in the NAV decline.

This is RDL’s largest fall in NAV since December 2016. The fund, which is in the process of being wound up, saw its NAV fall 0.14 per cent in June, following a 0.07 per cent drop in May.

RDL has been embroiled in a lengthy dispute with its Princeton holding, over its exposure to bankrupt lender Argon. Last month it announced that an arbitration panel awarded it net damages totalling $30.7m (£23.5m), plus pre-judgement interest accruing from 30 November 2016, but it now needs the go-ahead from the bankruptcy court to be able to enforce the award.

“The company will continue to pursue its claims in full against Princeton through the bankruptcy proceedings and it views the arbitration panel decision as a positive development that gives independent confirmation of the failings of Princeton and its general partner to abide by their contractual and legal obligations,” RDL said.

RDL announced that it would be closing down in June, amid concerns over its performance and management changes.

Chairman Christopher Waldron has departed and a new board, tasked with winding down the fund, was appointed at the annual shareholder meeting in July.