Pollen Street partner buys £1.5m of shares in P2P fund

Analysts say the fund is continuing to transition its portfolio into new areas of alternative credit.

Lindsey McMurray, managing partner of the investment manager of the £732m P2P Global Investments trust has bought £1.5m of the shares in the fund.

P2P Global Investments was brought under the umbrella of Pollen Street Capital management when its former investment manager MW Eaglewood merged with Pollen Street Capital last year.

Analysts at Liberum say the acquisition of such a large demonstrates confidence in the underlying portfolio,  which has delivered improved returns in recent months.

“We also note another partner of the investment manager invested £80k in the shares last week. The underlying income returns in July and August have been broadly in line with the level required to meet a 15p dividend.”

P2P GI has been undergoing a transition away from being a pure P2P play and more and more into niches with various niches of alternative credit.

“Returns should continue to improve as the legacy portfolio winds down (30 per cent of portfolio at June 2018) resulting in an increased dividend. We believe this should help to drive a re-rating from the current -19.4 per cent discount (15p target quarterly dividend implies 7.8 per cent dividend yield),” Liberum said.