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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.
On February 26, 2021, Vertical Capital Income Fund (NYSE: VCIF) confirmed a monthly distribution of $0.0800 per share to shareholders of record as of February 16, 2021, under its managed distribution plan. The distribution comprises various sources, including net investment income ($0.0300 or 37.5%), net realized short-term gains ($0.0100 or 12.5%), and net realized long-term gains ($0.0400 or 50%). The Fund's current distribution rate is 8.07% of NAV as of January 31, 2021. Shareholders will receive a Form 1099-DIV for tax purposes after the fiscal year ends.
On January 8, 2021, Vertical Capital Income Fund (VCIF) announced significant leadership changes, including the retirement of Chairman Robert J. Chapman. The board opted to eliminate his vacated position to reduce expenses, promoting Independent Trustee Robert J. Boulware as Chairman. Katherine Hawkins, Senior Vice President, will take over as Portfolio Manager, while Destiny Poninski becomes Treasurer. This transition aims for a smooth leadership handover, with continued oversight from President Michael D. Cohen and the expectation of enhancing the Fund's performance amidst its Managed Distribution Plan.
The Board of Trustees for Vertical Capital Income Fund approved a Managed Distribution Plan set to begin in January 2021. Shareholders will receive monthly distributions calculated at 8% of the three-month average net asset value (NAV), providing consistent returns. The Plan aims to secure a higher annual rate, approximately 2-3% above recent rates, while focusing on residential whole loan investments. The Fund's distribution rate may vary based on market conditions and investment performance, and returns exceeding investment income may trigger return of capital distributions.
Vertical Capital Income Fund (NYSE: VCIF) announced a special distribution of $0.34 per share, comprising $0.12 in ordinary income for December 2020 and $0.22 in long-term capital gain for the fiscal year ending September 30, 2020. Key dates include the declaration on December 8, 2020, ex-date on December 17, 2020, record date on December 18, 2020, and payment on December 31, 2020. As of November 30, 2020, the Fund held approximately $5.0 million in cash, with $11.9 million in the acquisition pipeline. The current net asset value per share is $12.17.
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