Direct lending fund opts for wind-down

By Aisling Finn on Tuesday 11 February 2020

Alternative Lending

The news comes after Hadrian’s Wall Secured Investments had a rocky 2019 with its largest loan entering administration.

Direct lending fund opts for wind-down
Image source: Pexels


Hadrian’s Wall Secured Investments Limited’s (HWSIL) board has opted for a wind-down after reporting a 0.4 per cent reduction in net asset value (NAV) in December.

Since its launch in 2016, the SME-focussed direct lending portfolio aimed at mid-market loans, has had a NAV performance of -2.31 per cent, bringing the 2019 NAV total return to -10.48 per cent.

Following this reduction, the board has opted to return capital to its shareholders and wind-down proposals are expected to be put to investors at an EGM in the coming weeks. 

HWSIL uses a targeted investment strategy to invest in loans; it currently has two loans with a principal value of £17.1m and reserves against these two loans at £4m. 

The company has also reduced its revolving credit facility to £5m.

As a result of the company’s recent losses, they have also failed to meet their targeted annualised dividend of at lease six pence per share, only managing a dividend of 1.5 pence per Ordinary Share.

An analyst from Liberum commented: “The concern will be whether there will be further loss reserves against loans in the portfolio given the track record to date. 

“We believe the managed wind-down was the only viable option for the board.”

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.

Companies in this Article:


More like this:

Exclusive: Tide scoops up Funding Options in its first acquisition

Editor's Pick

29 November 2022
Oliver Smith

Zilch poised to axe 10 per cent of workforce

28 November 2022
John Reynolds

UK Strikes Singapore fintech deal

28 November 2022
Daniel Lanyon