PE Tech Report


Like this article?

Sign up to our free newsletter

VSL continues strong run

Victory Park Speciality Lending (VSL), a company that invests in opportunities within the financial services market primarily through balance sheet or marketplace lending models, has continued its strong start to 2018 with record quarterly revenue returns, generating a gross revenue return on balance sheet investments of 2.96 per cent and a total net revenue return of 2.69 per cent.

The capital return for the quarter was -1.75 per cent for a total net return of 0.94 per cent for the quarter. This was accomplished despite carrying slightly elevated levels of cash from the refinancing activity during the quarter from the Company’s balance sheet investments in Kreditech and The Credit Junction, Inc which accounted for approximately 5.37 per cent of the Company’s NAV. The increase in LIBOR during the quarter continued to translate into higher revenue returns for the company.
The quarter was also strong in deal flow credit which remains robust throughout the portfolio.
The company’s investment manager is Victory Park Capital Investment Advisors (VPC).
VPC’s growth and scale has allowed the VSL to invest alongside its other funds, specifically in deals it would otherwise not have the opportunity to complete without the scale of a large specialised firm. The impact VPC has on future deals for VSL has meant that VSL is able to continue its strategy to reinvest the proceeds from the refinancing of balance sheet investments as quickly as possible.  
VSL’s investment in iZettle, which represents 5.8 per cent of NAV and is the fourth largest holding in the portfolio, reflects the sort of new investments that are available to the Company. The position in the Swedish payments company that announced its intention to float this week, would not have been possible without the scale of VPC’s extended offering. iZettle’s proposed IPO will be the largest fintech IPO in Europe and represents an attractive opportunity for investors in the Company.
VPC’s growth has continually provided investment opportunities for VSL and has meant that investors are increasingly exposed to attractive returns from investments that would otherwise have been unattainable for VSL.

Like this article? Sign up to our free newsletter