Toran
19 Jun 2015
Re: GLI Finance to list new debt fund Thank you for the info.That last sentence says a lot.
ValueGrowth
19 Jun 2015
GLI Finance to list new debt fund GLI Finance aims for 8% yield with new debt fundPeer to peer investor looks to raise £100 million for new investment trust investing in loans to smaller companies.GLI Finance (GLIF + ) is looking to raise more than £100 million in equity capital for an onshore, main market-listed investment trust investing in a portfolio of global, non-bank originated small business loans.The trust will target an annual yield of 8% and aim to be fully invested within six to nine months. The company will seed the portfolio with around £20 million of its current loans and charge an annual fee of 0.75% on the lower of assets or market value up to £100 million, and 0.5% thereafter. There will be no performance fee.GLI chief executive said: ‘The provision of finance to SMEs [small and medium-sized enterprises] globally continues to be problematic, with banks only willing or able to provide finance in large loan sizes on very straightforward credit terms or to smaller companies with impeccable credit, presenting the alternative finance market with multiple opportunities.‘We believe that the fund will offer investors an alternative way to invest in SME finance assets.’Formerly a collateralised loan specialist, GLI has revised its strategy over the past year to divest its former portfolio and take equity stakes in 19 international small business lenders that will act as originators for the new fund.The AIM-listed, Guernsey-regulated fund changed its status from investment company to operational business at the end of March this year. Like the other trusts in the rapidly growing direct lending sub-sector, the new fund will be an eligible holding for investors to put in their ISAs (individual savings accounts) following a decision this week by HM Revenue & Customs to allow peer-to-peer loan trusts inside the tax wrapper. P2P Global Investment (P2P + ), which raised £21.5 million in a 'tap' share issue yesterday and plans to raise £250 million next month, yields 5.6%. Meanwhile VPC Specialty Lending (VSL + ) and Ranger Direct Lending (RDL + ), which both launched earlier this year, offer 7.7% and 9.4% respectively. They aim to support their dividends through the interest payments from the loans in which they invest.Although leading fund managers such as Neil Woodford have invested in P2P and VPC, analysts and financial advisers remain cautious towards the sector's rapid popularity. Shares in the trusts trade at substantial premiums of between 7% and 10% above their underlying net asset value.Tim Cockerill, investment director at Rowan Dartington, a wealth manager, said: 'It’s one of the hot, growing areas of lending. For our clients, though, we want to know what the risks are and to be able to quantify them.'The concept is easy: they pay out a good dividend and there’s capital growth. They can bring a lender and a borrower together and both can benefit from an attractive rate. But with yields of around 9% somebody is paying quite a lot of money.’Source: Citywire.co.uk
MRBIG
17 Jun 2015
this yielding 9% now, much better than P2P
Damp Seaweed
04 Jun 2015
Re: Who would of thought..... It is hardly a great endorsement of the company management that it is valued at just marginally above its NAV. Almost anyone can buy assets. But you need a degree of skill and talent to extract value out of your assets. This management has yet to demonstrate that ability.
Toran
01 Jun 2015
Who would of thought..... ..that 3 letters -NAV- would have such an effect.Oh yes, the wise among us 
Damp Seaweed
19 May 2015
Re: share price fall On the subject of yield.Is the dividend paid Gross or does it Net with a 10% tax credit ?Many thanks
Vosene
19 May 2015
Re: share price fall Or it could be that those folks who bought in on Simon Thomson's tip in the Investors Chronicle circa 60p cannot take the threat of a small capital loss and are pulling this down. It is approaching 10% yield on what could be a growth stock.Looking forward to their next statement to the market, could go either way, though on past evidence, will probably drift sideways indefinitely...
Damp Seaweed
19 May 2015
Re: share price fall It could be that the market has rumbled that there is a problem with the 'new platform' that they raised all that money for through the placement and were supposed to launch before the General Election.
Vosene
18 May 2015
Re: share price fall It's still at a premium to NAV. Some shares are at over a 50% discount to NAV - then it would be worth complaining!There's supposed to be a NAV update this month which should start to show us if the board have picked any winners in their various investments.
petethenovice
18 May 2015
share price fall Anyone any idea why this keeps falling.
Vosene
08 May 2015
Re: SOME EDUCATION PLEASE I understood that GLIF is making money from its investments by buying into loans which are offered on the platforms, preference shares in the companies involved etc. I am concerned that they have taken tinpot stakes in tinpot companies but it is too early to tell what the failure rate will be.There was some good news regarding on one their platforms this week.The Credit Junction has bagged a 50 million dollar credit facility.[link]
badnews
07 May 2015
Re: SOME EDUCATION PLEASE Thank you for your response. A couple of questions about your points, Vosene.This "scatter gun" approach you mention. Are you comfortable that the gun being use doesn't seem powerful enough to buy controlling stakes of the platforms being invested in? If we are relying on these platforms through which to lend money, would it not be highly risky to base our business on this?Another question about the scatter gun. The latest announcement had zero comment of the financials behind the company we were buying in to. No earning figures, or mention of whether it pays dividends to contribute to our income. Does this concern you?Regarding your indicated reliance on the NAV to inform us on the progress of the company, could it be reasonable to say that this figure is baseless if we are not given the finer details on the said acquisitions, and how they will be accretive to the value of the company?
Rober01
06 May 2015
Re: SOME EDUCATION PLEASE Very much my reasoning too!!! For me diversification is very important, when entering a new area like this.
Vosene
06 May 2015
Re: SOME EDUCATION PLEASE They have become something of an investment trust for lending platforms and it is too early to tell which will be successful. I feel they have adopted a scattergun approach in a hot area. Only a few of these platforms need to take off and it doesn't matter if the rest crash and burn (which some of them will). The best judge we have of success is NAV , and we are due an update on that this month. The NAV has been stuck in a narrow range for quite a long time.
badnews
06 May 2015
SOME EDUCATION PLEASE Fellow Shareholders,Can someone please help me understand why our company is acquiring minority stakes in funding platforms? With only minority stakes, does this not mean that we are not necessarily empowered in making these companies behave in a way that is in harmony with our interests?Does anybody feel that this might be a bit of a rushed buying bonanza that could come back to bite us?While I like the concept of transforming the company from the CDO portfolio, I am having certain nerves about the method of execution.Any thoughts?BN
