Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1641394786
February 11 2020

Hadrian’s Wall Secured Investments opts to close fund following strategic review

Marc Shoffman Industry News, News, Top 3 Funding Circle SME Income Fund, Hadrian's Wall Secured Investments, Numis, Ranger Direct Lending

Hadrian’s Wall Secure Investments (HWSI) is likely to become the latest alternative finance-focused investment trust to shut down.

The fund launched a strategic review in December and has concluded the best option is to close.

Investors will be invited to vote on the closure at an extraordinary general meeting  and if approved the investment company will be “put into managed wind-down with cash returned to shareholders in a timely and efficient manner,” HWSI said in a stock market update.

The company would be renamed the HWSI Realisation Fund and returns may comprise dividends, capital distributions and share buy backs or any combination of these.

HWSI would join other direct lending funds such as Ranger Direct Lending and the Funding Circle SME Income Fund in deciding to wind down, while others in the sector have shifted focus from marketplace lending to secured assets and balance sheet finance.

Brokerage Numis said in an analyst note that it was not surprised by the move.

“The fund is small and has lost faith of investors following significant increases to loss provisions in recent months due to issues in the underlying loans,” Numis said.

“Reflecting this, the fund’s discount has widened out to around 40 per cent.

“The hit to sentiment has been compounded by limited disclosure, with the private nature of debt meaning that names of investments are not disclosed, and there is limited information about risk metrics either regarding individual investments or on an aggregated portfolio basis.

“The amortisation schedule is useful information now that the company looks set to commence a managed wind-down, which implies that investors should receive the bulk of their capital back by mid-2022, with the final maturity in the portfolio in 2023.

“This does not consider any further potential portfolio issues or potential portfolio sales, although achieving an acceptable price on portfolio sales may be difficult to achieve.”

Read more: Alternative finance-focused funds facing ‘existential crisis’

Lendy Action Group raises over £50,000 for legal fund Assetz Capital reassures investors after scammers clone platform

Related Posts

Dog at school

Industry News, News, Top 3

Five key takeaways from the fintech review

Closed sign

Industry News, News, Property, Top 3

The House Crowd goes into administration

investing

Industry News, News, Top 3

Government urged to modify EIS to promote lending

Popular posts:

  • The House Crowd goes into administration
  • RateSetter to stop investment withdrawals from 26 March
  • UK Finance calls for global fintech cooperation
  • Metro Bank plans to offer RateSetter lending through…
  • RateSetter confident of growing Metro Bank’s…
  • FCA puts the brakes on Buy2Let Cars
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by