RiverNorth Marketplace Lending, which has a term preferred stock outstanding, has decided to take their closed end interval fund to the public markets
The closed end fund, which invests in loans made in the peer-to-peer marketplace, has been quoted (but not traded) on a daily basis up to now–and has traded on a ‘direct purchase’ basis.
The fund has had a minimum investment of $1,000,000 required (which is a aggregate amount of client accounts at the advisor level).
The company has around $232 million in assets–$190 million on a “net asset” basis (on 2/28/2019) as they have a little of $40 million of the term preferred outstanding which they use as leverage.
The term preferred issue is an ‘ok’ issue, but we have not owned it as it holds level 2 and level 3 assets–and our preference is for level 1 (i.e. assets that trade on exchanges) CEF preferred issues.
Of course the fund must hold a 200% asset coverage ratio, which give some safety to any CEF preferred issue.