Oaktree Sends Further Letter to Ranger Board of Directors
April 27 2018 - 2:00AM
Business Wire
Calls on Board to Allow All Shareholders a
Voice
Funds managed by Oaktree Capital Management, L.P. (“Oaktree”),
an 18.56% shareholder of Ranger Direct Lending Fund PLC (LON: RDL)
(“Ranger” or the “Company”), sent a letter to the Ranger Board of
Directors (the “Board”) earlier today regarding its ongoing
strategic review process, urging the Board to allow all
shareholders a vote on the crucial matters currently being decided
by the Board.
The full text of the letter is as follows:
April 27, 2018
Ranger Direct Lending Board of
Directors:Mr. Christopher WaldronMr. Jonathan
SchneiderDr. Matthew MulfordMr. Scott Canon
CC: Mr. Gavin Kelly, Kinmont Advisory
Dear Directors of Ranger Direct Lending,
In Ranger Direct Lending’s (“Ranger” or the “Company”) RNS dated
April 24, the Ranger Board of Directors (the “Board”) disclosed
that it is “engaged in an active and positive discussion with
shareholders.” In the RNS the Board also said that it is essential
“to achieve sufficient consensus between the Board and shareholders
on the Company’s future direction.”
Oaktree strongly agrees with these sentiments. Ranger is at a
critical juncture and facing major decisions that will impact
future shareholder value. For this reason, we believe it is
imperative that the Board give all
shareholders a voice in these decisions through a full
shareholder vote. We understand that you are required to hold a
shareholder vote for any material change in investment policy;
however, we urge you to publicly commit to a full shareholder vote
on any future investment management
arrangements with which the Board wishes to proceed, regardless of
whether it is required.
In our April 11 letter to you, we outlined the structural
challenges faced by Ranger as well as the clear shareholder
benefits of a wind-down. At such an important time for the Company,
we believe it is imperative for you to give all Ranger shareholders
a voice in determining the path forward. This would demonstrate
that the Board takes its fiduciary obligations to the Company
seriously and is acting in the best interests of the Company and of
its shareholders as a whole.
Conversely, we believe it would raise significant governance
questions if the Board were to adopt a new long-term investment
management arrangement – thereby locking in new fees and
potentially risking disruption to the existing portfolio – without
allowing all shareholders a voice on the matter in an open and
transparent way.
We believe that the question of future shareholder value is
important for all shareholders and accordingly we will be making
this letter public.
Sincerely,
/s/ Patrick M. McCaneyPatrick M. McCaneyManaging Director and
Portfolio ManagerValue EquitiesOaktree Capital Management, L.P.
About Oaktree
Oaktree is a leader among global investment managers
specializing in alternative investments, with $121 billion in
assets under management as of March 31, 2018. The firm emphasizes
an opportunistic, value-oriented and risk-controlled approach to
investments in credit, private equity, real assets and listed
equities. The firm has over 900 employees and offices in 18 cities
worldwide. For additional information, please visit Oaktree’s
website at http://www.oaktreecapital.com/.
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