Ranger Direct Lending Fund : RDL Monthly NAV – 28 February 2017

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INVESTMENT HIGHLIGHTS

• Loan portfolio approximately 75% secured4diversified across multiple platforms.

  and

  SERVICE PROVIDERS
  Investment Advisor	Ranger Alternative Management II, LP
  Administrator	Sanne Fiduciary Services Limited
  Corporate Broker	Liberum Capital Limited
  Auditor	Deloitte LLP
  Custodian	Merrill Lynch
  Registrar	Capita Asset Services
  Company Secretary	Capita Company Secreterial Services Limited

• 12%-13% targeted unlevered annual returns (after accrual for loan loss reserves or write-offs and gross of fees and expenses to the fund) with respect to portfolio investments within the fund.

• 10% targeted dividend on issue price when fully invested and leverage applied, payable quarterly.

• Sophisticated AI software has track record of enhancing returns with applicable investments.

• VC equity opportunities available for investment by the Company.

1 Please refer to important disclosures on Page 4.

2 As the fund in denominated in US dollars, all references to performance and balances are also in US dollars unless specifically noted otherwise.

3 Share price as at 28 February 2017.

4 A secured Debt Instrument is defined by the Company as a payment obligation in which property, revenue (including receivables), or a payment guaranty has been pledged, mortgaged or sold to the Company as partial or full security with respect to such obligation.

PORTFOLIO COMPOSITION (EX CASH) AS AT 28 FEBRUARY 2017

Investments by Lending CategorySecured3Versus Unsecured Loans

Geographic Breakdown

Commercial Real Estate

8%

Residential Real Estate 6%

MCA/BCA 6%

Mixed-Use Real Estate

3%

Consumer - Secured

Multi-Family Real Estate

10%

Business Loans 11%

Platform Debt 11%

Business LOC 17%

Unsecured 25%

Secured 75%

US 88.3%

Canada 2.7%

Australia 3.7%

UK 5.3%

1%

Equipment Loans 1%

Factoring

1%

Consumer - Unsecured 25%

1 Performance is presented cum income.

2 The organization costs for starting the new share class exceeded the income accrued on the deployed assets.

3A secured Debt Instrument is defined by the Company as a payment obligation in which property, revenue (including receivables), or a payment guaranty has been pledged, mortgaged or sold to the Company as partial or full security with respect to such obligation.

MONTHLY COMMENTARY

The Ranger Direct Lending Fund plc (the "Company") is pleased to announce the twenty-first consecutive month of positive returns through February 2017. In February, the NAV for the Company's ordinary shares appreciated by 0.87%, and after applying a loss reserve of 0.25% netted a 0.62% appreciation. In February 2017, the Company's loan investments outperformed Liberum AltFi Returns Index by 32 bps. February's monthly NAV return was impacted by both adverse foreign exchange movements and the effect of a shorter month. While the Company hedges foreign currency exposure to its ZDP share class and investments made outside the USA, currency fluctuations may still impact the monthly NAV. The combination of the short month and currency fluctuations negatively impacted the February NAV appreciation by approximately 0.15%.

On 24 February 2017, the Company declared an interim dividend of 28.51 pence per ordinary share for the 3-month period to 31 December 2016, to be paid on 7 April 2017.

As noted in an announcement dated 13 December 2016, the Company raised in aggregate £16.1 million under the Open Offer and Initial Placing of C Shares (Ticker: RDLC). Admission to the London Stock Exchange occurred on 16 December 2016. As at 28 February 2017, the Company had fully deployed the C Share capital and anticipates a conversion to ordinary shares based on respective NAVs, as at 28 February 2017.

In addition, the Company raised £23.8 million through a ZDP Shares Offering on 4 November 2016. The proceeds of the ZDP Shares were fully deployed by the end of December. This November ZDP Offering, along with the ZDP Offering completed on 1 August 2016 has increased the Company's gearing to approximately 29% as at 28 February 2017. Additional information regarding the terms of the ZDP Shares is available from the Company's website.

The Company is invested in debt instruments from 13 direct lending platforms within a diverse group of asset classes, including real estate loans, SME loans, invoice receivables, and equipment finance. The Company continues its geographic diversification by allocating capital to non-US lending platforms, which include investments in the UK, Australia and Canada, in amounts equal to approximately 12% of the portfolio as at 28 February 2017.

Further to the Company's announcements on 22 December 2016 and 20 January 2017 regarding the bankruptcy proceedings in respect of Argon Credit, LLC and Argon X, LLC (together, "Argon"), the SME Credit Line Platform continues to oversee the servicing of certain Argon loans and has informed the Company that, notwithstanding the default by Argon, as of the end of February 2017, the Company's investment in the SME Credit Line Platform continues to perform in line with the SME Credit Line Platform's expectation. Proceedings are continuing in respect of both the Argon bankruptcy and the SME Credit Line Platform's claim that Argon has, in breach of the terms of its agreements with the SME Credit Line Platform, assigned a portion of the secured underlying collateral to an unapproved special purpose vehicle. The Manager continues to monitor both these proceedings and the performance of investment in the SME Credit Line Platform as a whole.

Upon the commencement of each investment, the Company may assign a loss reserve that will be accrued over the term of such investment, or pool of investments, for the purpose of offsetting potential future write-offs that may be realised with respect to such investment. On the first page of this report, the Monthly and Cumulative Loss Reserve reflects the total of such accruals. With the portfolio maturing and anticipated write-offs being realised, the Investment Manager continues to actively manage the reserves.

This newsletter is published in the United Kingdom by Ranger Direct Lending Fund plc (the "Company"). It is provided for the purpose of information only, and if you are unsure of the suitability of this investment you should take independent advice. Net Asset Value (NAV) performance is not linked to share price performance and shareholders may realise returns that are lower or higher in performance.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested. The views expressed are those of the Company's investment manager, Ranger Alternative Management II, LP as at the time of writing. These are subject to change without notice and do not constitute investment advice. Although the Company and Ranger Alternative Management II, LP have used reasonable efforts to ensure the accuracy of the information contained in this newsletter, neither the Company nor Ranger Alternative Management II, LP make any warranties or representations with respect to the completeness or accuracy of the information set forth herein. Examples of investment process, risk management, due diligence, position sizes, diversification, leverage, assessment of risk and similar information (together, the "Investment Programme") are presented as general guidelines used for illustration purposes only and are subject to change without notice to investors at any time at the sole discretion of the Ranger Alternative Management II, LP. In addition, the composition and size of, and risks associated with, current or future investments of the Company may differ substantially from examples set forth in this newsletter. Accordingly, actual implementation of the Investment Programme may vary from the examples presented herein.

All data in this newsletter is at or to the final day of the calendar month identified in the heading of the newsletter's front page unless otherwise stated.

The Liberum AltFi Returns Index (LARI) calculations are based on aggregated data from the four largest UK lending platforms by origination volume. For the month ending 28 February 2017, the UK platforms included in the LARI are Zopa, Funding Circle, RateSetter and MarketInvoice. As such, the portfolio and risk characteristics of the Liberum AltFi Returns Index may materially differ from those of the Company. Additional information regarding the LARI may be obtained by accessing www.altfi.com/data/indices/ returns. The Liberum AltFi index is a statistical reference presented for comparison purposes only and has not been adopted by the investment adviser as the standard point of reference for measuring performance of the Ranger Direct Lending Fund. UK platform results were adversely impacted by the UK vote to leave the European Union (Brexit). Results of the U.S. dollar denominated Ranger Direct Lending Fund benefited from such events.

This newsletter may not be distributed or transmitted in any jurisdiction outside the United Kingdom where such distribution may lead to a breach of law or regulatory requirements, or transmitted, distributed or sent to or by any national, resident, or citizen of any nation other than the United Kingdom. The distribution of this document in certain jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdiction.

Ranger Direct Lending Fund plc

Registered office 40 Dukes Place, London, EC3A 7NH.

Registered as an investment company in England under section 833 of the Companies Act 2006.

Registered Number 09510201