Pollen Street Capital calls for new board members to protect PSSL fund

The investment manager of Pollen Street Secured Lending (PSSL) has called for shareholders to consider appointing their own representatives on the board to protect the investment trust from damage.

It is the latest development in the clash between the fund’s investment manager Pollen Street Capital (PSC) and the PSSL board.

The board of PSSL issued an investment management termination agreement to PSC last month, accusing it of refusing to provide due diligence documents so Waterfall Asset Management could make a potential offer for the fund.

PSSL’s board also imposed operational restrictions on the manager, which PSC said is “severely restraining” its ability to manage the fund for the benefit of shareholders.

The fund is currently restricted from making any new or disposing of investments and can’t drawdown existing facilities.

PSC said PSSL has refused to engage on these restrictions and has now called for the investment trust’s shareholders to consider appointing their own representatives to the board to ensure it has the relevant expertise and, if necessary, to lead a strategic review of the options available “before significant and permanent damage to PSSL occurs.”

The Financial Conduct Authority (FCA) has also been notified about the effect the restrictions are having, PSC said.

Read more: What does the future hold for the world’s first P2P lending investment trust?

“The restrictions imposed by the board are severely restraining our ability to manage PSSL for the benefit of shareholders,” Lindsey McMurray, managing partner of PSC, said.

“It is now time for shareholders to appoint their own representatives to the board to avoid causing significant and permanent damage to PSSL.”