RANGER Direct Lending (RDL) has revealed it expects to write off nearly half its investment in a fund run by bankrupt Princeton Alternative Funding, as it appoints a new investment manager and director.
RDL, which is in the process of being wound down, announced in November that its investment manager Ranger Alternative Management was stepping down early.
The London-listed fund named International Fund Management (IFM) as its new investment manager on Tuesday, with immediate effect.
It also named Joe Kenary as a new board member, to sit alongside executive chairman Dominik Dolenec and executive director Brett Miller.
RDL had earlier this year named Ares as a new investment manager for the fund, before the firm stepped back amid a shareholder backlash.
In a separate update to the stock market, Ranger said it expects to recover just $15m (£11.7m) of its $28.5m investment in the Princeton Alternative Income fund, following the bankruptcy of Princeton Alternative Funding.
“A substantial write-down to the value of Princeton comes as no surprise, given the board had previously flagged it expected a write-down, but did not have sufficient information to quantify it,” said research from broker Numis.
“We treat this figure with caution and we would not be surprised to see further impairments, given that it remains subject to significant uncertainty and will not be finalised for some time.”
Numis said it “remains wary” of the fund given uncertainty over how much can be recovered from Princeton, and concerns the portfolio may be more difficult to realise, although the process has started strongly.