12th Jun 2018 11:35
LONDON (Alliance News) - Oaktree Capital Management LP said Tuesday that a board change in Ranger Direct Lending Fund PLC is "imperative for proper oversight" in the winding down process.
On Monday, Ranger had said it will move to realise its assets in an orderly manner, after Ares Capital Management III LLC said it will not be taking up the appointment as investment manager to the fund.
In an open letter to fellow Ranger shareholders written on Monday, Oaktree which holds an 18.56% stake in the company, said it believes that "new directors are needed to maximize shareholder value in the wind-down".
The company, who has put forward two nominees to be appointed to the board in May, said it urged Ranger to appoint them as they would provide the "much-needed oversight and experience" to the process.
"We urge the board to put the interest of shareholders first and do the right thing by immediately entering into discussion with Oaktree to add Oaktree's nominees instead of continuing with a costly, distracting and misguided effort to block highly-qualified, shareholder-supported nominees," Oaktree said.
This is the last one of a series of letters between the American asset management company and Rangers since April.
In April, Oaktree wrote a letter to Ranger saying that it believed shareholders' interests would be "best served by winding down the company" as it was "too small" and operating in a "niche asset class".
Oaktree also proposed the appointment of Greg Share, current managing partners of software and financial services-focused investment company Ambina Partners LLC, and Dominic Dolenec, managing partner of investment and advisory firm Emona Capital LLP, to the board.
In May, Ranger had responded to the shareholder's proposed nominations, saying that Oaktree was seeking to impose its own agenda for the future of the company.
Ranger will hold its annual general meeting on Friday.
Ranger shares were trading down 0.5% at 802.00 pence.
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