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Vertical Capital Income Fund (NYSE: VCIF) is a closed-end fund dedicated to generating monthly income through strategic investments. The Fund primarily invests in performing non-agency residential whole loans secured by real estate. Its secondary strategy aims at total return by acquiring performing residential loans at a discount to the unpaid principal balance, realizing capital gains as these loans are paid off before maturity.
Recently, the Fund has engaged in a significant transaction with an affiliate of global investment firm Carlyle (NASDAQ: CG). This transaction involves the sale of a major portion of its investment portfolio to satisfy conditions for closing a shareholder-approved deal. Consequently, the Fund's net asset value per share has adjusted from $9.96 to $8.27. Additionally, the Fund has terminated its Managed Distribution Plan and suspended regular distributions, anticipating new dividends post-transaction closure.
Upon successful closing of the transaction, Carlyle Global Credit Investment Management L.L.C. (CGCIM) will become the Fund’s new investment adviser. The Fund’s focus will shift to investing in equity and debt tranches of collateralized loan obligations (CLOs) to enhance shareholder value.
As part of the transaction agreement, CGCIM will make a special one-time payment to the Fund’s shareholders, amounting to approximately $0.96 per share, upon closing. Additionally, they will make a $40 million equity investment in the Fund through multiple transactions. Carlyle is expected to own around 35% of the Fund upon completion of these transactions.
The transition is backed by Carlyle’s extensive experience in the credit markets, where it currently manages over $150 billion in credit assets. Carlyle is also the world's second largest CLO manager, which underscores its capability to steer VCIF towards potentially high returns.
The Fund’s existing investment adviser, Oakline Advisors, LLC, will step down upon the transaction's closure, with Ladenburg Thalmann & Co. Inc. and Thompson Hine LLP serving as financial and legal advisors respectively. Investors are encouraged to stay updated with ongoing filings and announcements available on the SEC’s website and the Fund's official portals.
For more information on Vertical Capital Income Fund’s initiatives and updates, visit www.VCIF.us and follow them on Twitter.
Vertical Capital Income Fund (NYSE: VCIF) held its 2021 Annual Meeting on August 27, re-electing T. Neil Bathon as trustee. The fund announced a renewed $35 million credit facility maturing in July 2022, with $2.0 million currently outstanding. Interest rates will be based on the Prime Rate plus 0.50%, with a floor of 3.90%. The board emphasized its commitment to investor goals and responsible borrowing. Additionally, a monthly distribution of $0.0789 per share was declared for August 2021, with details on the sources of this distribution provided.
Vertical Capital Income Fund (NYSE: VCIF) has scheduled its Annual Meeting of Shareholders for August 27, 2021, at 10:00 a.m. Eastern Time in Columbus, Ohio. Shareholders as of July 16, 2021 are eligible to vote. A notice with meeting details will be mailed on July 26, 2021. The meeting will involve the reelection of a Fund Trustee. The Fund, focusing on residential whole mortgage loans, advises potential investors to consider its risks and investment objectives before investing.
FAQ
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