20th Jun 2019 15:39
(Alliance News) - RDL Realisation PLC on Thursday said Oaktree Capital Group Holdings GP LLC increased its stake in the company, which is currently in the process of winding down.
Shares in RDL were up 4.7% at 400.00 pence in afternoon trade.
Oaktree raised its holding on Tuesday this week to 4.3 million shares or a 26.61% stake from a 19.24% stake previously.
This was the same date on which RDL announced disappointing results for 2018 and raised concerns about the actions of its former investment manager.
RDL was formerly named Ranger Direct Lending Fund PLC and was managed by Ranger Alternative Management II LP. However, Ranger Alternative Management terminated its contract with RDL in February 2019.
In his statement, RDL Chair Dominik Dolenec said the board was "disappointed" by a lack of "prudent" management and monitoring by Ranger.
"This was the case in at least two lending platforms which are among the largest positions in the fund. In both cases, in our opinion, many established practices in the lending industry were not followed, such as diligent monitoring, appropriate cash controls, detailed, frequent and timely reporting and the retention of back-up servicers," said Dolenec.
RDL has also had issues with its investment in Princeton Alternative Income Fund LP and former general partner Princeton Alternative Funding LLC, which filed bankruptcy petitions in 2018. RDL expects to recover around USD15 million from the Princeton bankruptcy and has impaired its investment by USD13.5 million.
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