MVC Capital Monetizes Equity Investment in Folio Financial, Inc.

Rhea-AI Summary

MVC Capital (NYSE: MVC) announced the successful sale of Folio Financial, Inc. to Goldman Sachs, marking the completion of its exit from equity investments related to the original meVC Draper Fisher Jurvetson Fund. Chairman Michael Tokarz stated that MVC has shifted its focus to a primarily yield-oriented investment strategy while demonstrating patience in maximizing value from its equity holdings. The company aims to continue its commitment to providing capital for growth, acquisitions, and recapitalizations across various industries.

Positive

• Successful sale of Folio Financial to Goldman Sachs enhances liquidity.
• Completion of exit from previous equity investments positions MVC for yield-focused strategy.
• Strategic shift towards long-term debt and equity investments can drive shareholder value.

Negative

• None.

PURCHASE, N.Y., Oct. 06, 2020 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE: MVC) (“MVC Capital” or the “Company”), a publicly traded business development company (BDC) that makes private debt and equity investments, announced the closing of the sale of Folio Financial, Inc. to Goldman Sachs.

“With the sale of Folio, MVC Capital has completed the final chapter of exiting the equity investments from the original meVC Draper Fisher Jurvetson Fund,” said Michael Tokarz, Chairman and Portfolio Manager of MVC Capital. “Although we’ve transitioned to a primarily yielding-focused investment platform, we exhibited the patience necessary to extract value from our equity investments.”

MVC-G

About MVC Capital, Inc.

MVC Capital (MVC) is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For additional information about MVC, please visit MVC's website at www.mvccapital.com.

Safe Harbor Statement and Other Disclosures

These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including, among other things: MVC Capital's ability to monetize equity investments; deliver value to shareholders and execute its yield investment strategy; MVC Capital’s ability to make additional debt or other yield-generating investments; and changes in economic or financial market conditions and other factors that are enumerated in the Company's periodic filings with the Securities and Exchange Commission. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release. Past performance is no guarantee of future results.

Investor Contact

Jackie Rothchild
MVC Capital
914.510.9400

Or

Jeffrey Goldberger / Allison Soss
KCSA Strategic Communications
212.896.1249 / 212.896.1267

FAQ

What is the significance of MVC Capital's sale of Folio Financial, Inc. to Goldman Sachs?

The sale marks the completion of MVC Capital's exit from its original equity investments, enabling a shift to a yield-focused investment strategy.

How will MVC Capital's focus change after the sale of Folio Financial?

MVC Capital plans to concentrate on long-term debt and equity investments to fund growth and acquisitions.

What is MVC Capital's stock symbol?

MVC Capital is traded under the stock symbol MVC on the New York Stock Exchange.

When did MVC Capital announce the closing of the Folio Financial sale?

MVC Capital announced the closing of the sale on October 6, 2020.

Who is the Chairman of MVC Capital?

Michael Tokarz serves as the Chairman and Portfolio Manager of MVC Capital.