Vertical Capital Income Fund (VCIF) Announces Leadership Changes

Rhea-AI Summary

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.

Positive

• Leadership transition expected to be smooth, confirming effective succession planning.
• Katherine Hawkins brings 15 years of experience in residential mortgage markets to her role as Portfolio Manager.
• Managed Distribution Plan anticipated to support the Fund's success.

Negative

• Elimination of Robert J. Chapman's board position raises concerns about continuity in leadership.

DALLAS, Jan. 8, 2021 /PRNewswire/ -- Vertical Capital Income Fund (NYSE: VCIF, the "Fund") and Oakline Advisors, LLC ("Oakline"), adviser to the Fund, announced today that the Fund's Chairman of the Board of Trustees, Treasurer, and Portfolio Manager, Robert J. Chapman has announced his retirement effective today.  In an effort to reduce expenses that would likely be associated with the appointment of a new Trustee, the Fund's Trustees voted to eliminate Mr. Chapman's to-be-vacant board position and elevate existing Independent Trustee Robert J. Boulware to serve as Chairman effective also today.  While Mr. Chapman will consult with Oakline until March 31, 2021 for a smooth transition, Oakline's Senior Vice President Katherine Hawkins will assume the role of Portfolio Manager and Oakline's Vice President/Senior Controller Destiny Poninski will become Treasurer immediately.  Officers of the Fund serve subject to annual reappointment.  Ms. Hawkins will guide the Fund's portfolio as aided by the leadership of Michael D. Cohen, President of the Fund and Oakline.   

"This transition is expected to be smooth and one that further confirms the value of our succession planning, since our continuing leadership team has been helping direct the management of the Fund for many years," noted Mr. Cohen.  "We continue to be pleased with the Fund's performance and anticipate the recently announced Managed Distribution Plan will add to its successful track record."

Focused on providing assistance to the VCIF portfolio and its acquisition and disposition strategies since Oakline was appointed as adviser to the Fund, Ms. Hawkins, Senior Vice President/Portfolio Manager has been with Oakline Advisors, LLC (and its predecessor) for approximately six years and with Behringer, Oakline's parent company, for eight years.  An accomplished buy and sell-side investment professional with 15 years of experience in the residential mortgage market, Ms. Hawkins is skilled in identifying and building relationships, loan analysis and pricing as well as growing investment opportunity pipelines.  Additionally, she has been providing assistance on due diligence and purchase execution for the Fund. Prior to working for Oakline, Ms. Hawkins was responsible for product analysis/representation of a platform of multiple alternative investment strategies. She began her career with a Dallas investment bank developing a RMBS and whole loan trading desk which purchased over $5 billion in product during her tenure.  She received a Bachelor of Science Degree in Political Science from Texas Woman's University.

While already involved through Oakline in providing assistance for the treasury activities of the Fund, Oakline's Vice President/Senior Controller Destiny Poninski has been part of the oversight of accounting and financial reporting since Oakline was appointed as adviser to the Fund.  Ms. Poninski joined Oakline Advisors in 2015 as Senior Fund Accountant and has been with Behringer, Oakline's parent company, since 2014.  Prior to joining Oakline Advisors and Behringer, Ms. Poninski worked in the real estate investment accounting division at Goldman Sachs.  Ms. Poninski received a B.A. in Accounting from Lindenwood University and has more than 10 years of accounting experience.

Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors' expectations for future distribution changes, the clarity of the Fund's investment strategy and future return expectations, and investors' confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. No Fund is a complete investment program and you may lose money investing in a Fund. An investment in the Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund's investment objective, risks, charges and expenses.  For further details, please visit Vertical Capital Income Fund's website at vertical-incomefund.com.

This release contains forward-looking statements relating to the business and financial outlook of Vertical Capital Income Fund that are based on the Fund's current expectations, estimates, forecasts and projections and are not guarantees of future performance. There is no assurance that the Fund will achieve its investment objective. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release.

About Vertical Capital Income Fund

Vertical Capital Income Fund is an NYSE listed closed-end fund that primarily invests in residential whole mortgage loans and residential whole loans secured by deeds of trust.  The investment objective of the Fund is to seek income.

About Oakline Advisors, LLC

Oakline Advisors, LLC is the adviser to Vertical Capital Income Fund.  Founded in 2013, Oakline Advisors, LLC is an SEC-registered investment adviser that specializes in the residential whole loan market. It is a wholly owned subsidiary of Dallas, TX-based Behringer.  Since its inception in 1989, Behringer, together with its affiliates, has raised equity of more than $6 billion in assets through public and private fund structures.  For more information about Oakline and Behringer please visit their respective websites at oaklineadvisors.com and behringerinvestments.com. 

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/vertical-capital-income-fund-vcif-announces-leadership-changes-301203590.html

SOURCE Vertical Capital Income Fund

FAQ

What leadership changes occurred at Vertical Capital Income Fund on January 8, 2021?

Robert J. Chapman retired, leading to the promotion of Robert J. Boulware as Chairman, while Katherine Hawkins became Portfolio Manager and Destiny Poninski took the role of Treasurer.

Who will manage the portfolio after Robert J. Chapman’s retirement?

Katherine Hawkins, previously Senior Vice President at Oakline Advisors, will take over as the Fund's Portfolio Manager.

What is the significance of the Managed Distribution Plan for VCIF?

The Managed Distribution Plan is expected to contribute positively to the Fund's performance and distribution consistency.

How might the leadership changes at VCIF impact investors?

While the transition aims for smooth continuity, concerns about the elimination of Chapman's position might affect investor confidence.