Portfolio update - Argon Credit

22 December 2016

Ranger Direct Lending Fund PLC

(the "Company")

Portfolio update - Argon Credit

The Company notes the recent press coverage relating to the filing for Chapter 11 bankruptcy by Argon Credit, LLC and Argon X, LLC (together, "Argon").

The Company has entered into a platform agreement with an SME Credit Line Platform as previously disclosed in its prospectuses and portfolio updates. That SME Credit Line Platform provided credit lines to Argon, the proceeds of which were used by Argon to fund underlying consumer loans. The Company's indirect participation in such credit lines amounts to approximately US$28.3 million. The SME Credit Line Platform's investment is secured, amongst other protections, by the entire Argon portfolio of loans.

The SME Credit Line Platform has asserted in its response to the bankruptcy filing that Argon has, in breach of the terms of its agreements with the SME Credit Line Platform, assigned a portion of the underlying collateral to an unapproved special purpose vehicle controlled by a former employee. Having made enquiries of the SME Credit Line Platform management, the SME Credit Line Platform is of the view that it does not currently expect any write downs in the value of its investment as a result of the Argon bankruptcy filing or any decrease in distributions that it expects to receive in respect of its investment both as a result of the security package of which the platform is the sole beneficiary and its expectation to recover the collateral that has been assigned without consent. Whilst no assurances can be given as to the outcome of the legal processes described above, the Company has further been advised that a substantial proportion of the security taken by the SME Credit Line Platform can be reasonably expected to be released to the control of the platform within the short to medium term. Specifically, the SME Credit Line Platform expects that the bankruptcy court will allow the assets to be transitioned to a backup servicer, and thereby to the control of the SME Credit Line Platform, within the next month.

Whilst there may be some impact on the timing of receipt of income by the SME Credit Line Platform (and, therefore, indirectly the Company), the Argon bankruptcy proceedings are not currently expected to have an impact on the Company's NAV or aggregate dividend payments.

The Board and the Investment Manager of the Company will continue to monitor the impact of the Argon bankruptcy filing on the Company's investment through the SME Credit Line Platform. Further announcements will be made in due course where there are any relevant updates for shareholders.

For further information about this announcement contact:

Capita Company Secretarial Services Limited +44 (0)20 7954 9531

Secretary

Ranger Alternative Management II, LP via Redleaf Communications

Scott Canon

Bill Kassul

Liberum Capital Limited +44(0)20 3100 2000

Media enquiries

Redleaf Communications +44 (0)20 7382 4730

Rebecca Sanders-Hewett

David Ison

IMPORTANT INFORMATION

All projections, estimates and views expressed on the outcome of the Argon bankruptcy proceedings involve significant elements of judgement and reliance on third party information which, in each case, may or may not prove to be correct. The actual outcome of any legal proceedings may be materially affected by new information coming to light following the date of this announcement. Any views contained herein are based on the Company's understanding of the relevant proceedings as of the date of this announcement.

END OF ANNOUNCEMENT