The Funding Circle SME Income Fund has reported that it has ‘deployed the majority of its assets’ and is looking to issue more shares in order to satisfy the demand from prospective investors. According to the fund, it had invested over 85% of its assets in 1,245 small to medium enterprise (SME) loans in the UK, US and continental Europe. As it stands, the fund had 59 per cent of its net assets in UK loans.
In November, the Fund listed on the London Stock Exchange and raised £150m in its initial public offering (IPO) in order to invest in small businesses and has delivered a solid return so far. Chairman Richard Boléat said: “We expect that dividend yield on a cumulative basis will be 6% to 7% based on the current share price. It is our intention to adopt a progressive dividend policy to the extent that the Company’s future performance permits.”
“As is usual in C share offerings, any funds raised will be deployed in a separate pool until the earlier of nine months or at such time as the funds have 90% invested, at which time they would be converted to ordinary shares, thus avoiding the performance drag on the ordinary shares that would otherwise derive from holding a substantial cash position pending investment.”