RiverNorth Marketplace Lending Corporation Announces Investment Strategy and Name Changes
April 15 2020 - 4:15PM
Business Wire
RiverNorth Marketplace Lending Corporation (the “Fund”)
announced that as part of a restructuring intended to broaden the
Fund’s investment mandate, the Board of Directors of the Fund (the
“Board”) has approved changes to the Fund’s principal investment
strategy and name.
Effective as of April 15, 2020 the Fund’s name has been changed
to RiverNorth Specialty Finance Corporation. The Fund’s common
shares continue to trade under its existing New York Stock Exchange
(“NYSE”) symbol “RSF”. The Fund’s preferred shares continue to
trade under the NYSE symbol “RMPL”. CUSIP numbers for RSF and RMPL
will not change. Further, the Fund’s investment objective, seeking
a high level of current income, will remain the same.
Effective as of May 22, 2020, the following changes will be made
to the Fund’s investment strategy:
Current Investment Strategy
New Investment
Strategy
Under normal market conditions, invest,
directly or indirectly at least 80% of its Managed Assets in
marketplace lending investments.
Under normal market conditions,
invest, directly or indirectly in credit instruments, including a
portfolio of securities of specialty finance and other financial
companies that the Fund's Advisor believes offer attractive
opportunities for income.
“We are very enthusiastic about the broadening of the Fund’s
investment strategy,” said Patrick Galley, Chief Executive Officer
and Chief Investment Officer of RiverNorth Capital Management, LLC.
“Expanding the investment mandate allows the Fund to diversify its
portfolio to a broad range of credit-oriented products, with an
emphasis on more liquid and tradeable products. Further, the
current dislocation in the fixed income markets may prove
advantageous by providing the opportunity to purchase what we view
as more favorable securities based on their risk-return
profile.”
For more information please review:
- RSF Investment Strategy and Portfolio Update
- SEC Filing
About RiverNorth
RiverNorth Capital Management, LLC is an investment management
firm founded in 2000. With approximately $4.6 billion1 in assets
under management as of February 29, 2020, RiverNorth specializes in
opportunistic investment strategies in niche markets where the
potential to exploit inefficiencies is greatest. RiverNorth is the
investment manager to multiple registered and private funds,
including the Fund.
Risk Information
Investing in Shares of the Fund involves certain risks,
including loss of principal, that are described in the “Risks”
section of the Fund’s prospectus, including the following:
Shares of closed-end investment companies frequently trade at a
discount to their net asset value and initial offering price.
The Fund is classified as non-diversified, which means the Fund
may invest a larger percentage of its assets in the securities of a
smaller number of issuers than a diversified fund. Investment in
securities of a limited number of issuers exposes the Fund to
greater market risk and potential losses than if its assets were
diversified among the securities of a greater number of
issuers.
If a borrower of a marketplace loan is unable to make its
payments on a loan, the Fund may be greatly limited in its ability
to recover any outstanding principal and interest under such loan,
as (among other reasons) the Fund may not have direct recourse
against the borrower or may otherwise be limited in its ability to
directly enforce its rights under the loan, whether through the
borrower or the platform through which such loan was originated,
the loan may be unsecured or under-collateralized, and/or it may be
impracticable to commence a legal proceeding against the defaulting
borrower.
The marketplace lending instruments in which the Fund may invest
will not typically be guaranteed or insured by any third-party and
will not typically be backed by any governmental authority.
Prospective borrowers supply a variety of information regarding the
purpose of the loan, income, occupation and employment status (as
applicable) to the lending platforms. As a general matter,
platforms do not verify the majority of this information, which may
be incomplete, inaccurate, false or misleading. Prospective
borrowers may misrepresent any of the information they provide to
the platforms, including their intentions for the use of the loan
proceeds. Marketplace lending instruments are generally not rated
by the nationally recognized statistical rating organizations
(“NRSROs”). Such unrated instruments may be comparable in quality
to securities falling into any of the ratings categories used by
such NRSROs. Accordingly, certain of the Fund’s unrated investments
could constitute a highly risky and speculative investment, similar
to an investment in “junk” bonds. At any given time, the Fund’s
portfolio may be substantially illiquid and subject to increased
credit and default risk. As a result of the foregoing and other
risks described in the Fund’s prospectus, an investment in the Fund
is considered to be highly speculative. The marketplace
lending instruments in which the Fund may invest may have
varying degrees of credit risk and the Fund will not be
restricted by any borrower credit criteria or credit risk
limitation. There can be no assurance that payments due on
underlying marketplace loans will be made.
The Fund’s investment objectives, risks, charges and expenses
must be considered carefully before investing. The Fund’s
prospectus and most recent periodic reports contain this and other
important information about the investment company, and may be
obtained by visiting rivernorth.com/literature or by calling
844.569.4750. Read the Prospectus carefully before
investing.
The default history for marketplace lending is limited and
future defaults may be higher than historical defaults.
1 Firm AUM reflects Managed Assets, which includes assets
attributable to leverage.
ALPS Distributors, Inc. Member FINRA. RVN001439 06.30.20
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version on businesswire.com: https://www.businesswire.com/news/home/20200415005655/en/
Investor Contact Chris Lakumb, CFA, CAIA, 312.445.2336
clakumb@rivernorth.com
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