London Stock Exchange Group

SME fund to launch IPO




New SME investment trust RM Secured Direct Lending PLC has announced plans to launch an initial public offering (IPO) on the London Stock Exchange's main market.

The company – which plans to make investments between £2m-10m over a period of three to 15 years – will make an application to list ordinary shares of one penny each in the capital of the company.

The IPO will be advised by RM Capital, an investment manager which specialises in credit sales, foreign exchange and direct lending.

James Robson, chief investment officer of RM Capital, said: "Secured lending offers excellent risk adjusted returns in a part of the market underserved by banks and other non-bank lenders.

“RM has the capability to originate and source loans across a broad range of sectors with robust security packages, which offer stable and predictable returns, while also enabling the growth and development of well-established SMEs who are the backbone of the UK economy."

RM Secured Lending expects to have a seed portfolio and deliverable pipeline of around £136m.

The firm will lend to SME and mid-market companies with a good visibility over cash flow and earnings, as well as strong management teams.

Security will be over a range of assets including real estate, plant and machinery, and income streams.

Placing of the shares will end at 1pm on 9th December, while the admission will begin at 8am on 15th December.

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