Vertical Capital Income Fund (VCIF) Announces Estimated Sources of October Distribution

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DALLAS, October 29, 2021 / PRNewswire / – As previously announced, Vertical Capital Income Fund (NYSE: VCIF) paid a monthly distribution of $ 0.0784 per share to all shareholders of record October 19, 2021, in accordance with the Fund’s managed distribution plan (the “Plan”).

In general, the amount of distributable income of the Fund depends on the cumulative gains and losses realized by the Fund during the whole year. Distributions may consist of net investment income, capital gains and return of capital, but the character of such distributions can not be determined until after the end of the financial year of the Fund. However, under the Investment Company Act of 1940, as amended, and the terms of the Plan, the Fund may be required to disclose the source of each distribution to its shareholders. The following table shows the estimated sources of the current distribution and the cumulative distributions paid in fiscal 2021 to date from the sources shown in the table. All amounts are expressed per share and as a percentage of the amount of the distribution.

Source

Running

Distribution

Per share

Failure of

Running

Distribution by

To share (%)

Fiscal year

Accumulation

Division
Per share

Breakdown of tax accumulation YTD

Distributions by

To share (%)

Net investment

Returned

$ 0.0298

38.01%

$ 0.0298

38.01%

Net short circuit realized

Capital gains over time

$ 0.0000

0%

$ 0.0000

0%

Long-term net realized capital gains

$ 0.0486

61.99%

$ 0.0486

61.99%

Repayment of capital or other source (s) of capital

$ 0.0000

0.00%

$ 0.0000

0.00%

Total Distributions

$ 0.0784

100.00%

$ 0.0784

100.00%

(1) You should not draw any conclusions about the performance of the Fund’s investments from the amount of this distribution or the terms of the Fund’s distribution policy.

(2) The amounts and sources of distributions shown in this 19 (a) notice are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during the remainder of its fiscal year and may be subject to change depending on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year which will tell you how to report these distributions for federal income tax purposes.

Average annual total return at net asset value for the 5-year period ended September 30, 20211

4.11%

Current annualized payout rate expressed as a percentage of NAV as of September 30, 20212

8.05%

Total cumulative return at net asset value for the year ended September 30, 20213

7.15%

Cumulative distribution rate to date as a percentage of NAV as of September 30, 20214

0.67%

1 The average annual total return at net asset value represents the change in the net asset value of the Fund, with all distributions reinvested, for the 5-year period ending on September 30, 2021.
2 The current annualized distribution rate is the annualized cumulative distribution rate as a percentage of the net asset value of the Fund as of the September 30, 2021.
3 The cumulative total return at the net asset value corresponds to the percentage change in the net asset value of the Fund for the period from the start of its financial year to September 30, 2021 including distributions paid and assuming reinvestment of such distributions.
4 Cumulated payout rate for the fiscal year for the period from the start of its fiscal year to September 30, 2021 measured on the dollar value of distributions during the cumulative period as a percentage of the net asset value of the Fund as of September 30, 2021.

The Plan will be subject to periodic review by the Board, and the Board may change the terms of the Plan, including changing the annual payout rate, or may terminate the Plan at any time without notice to shareholders of the Fund. The distribution rate of the Fund may be affected by many factors, including changes in realized and projected market returns, the performance of the Fund and other factors. There can be no assurance that an unforeseen change in market conditions or other unforeseen factors will not result in a change in the distribution rate of the Fund at a later date. The modification or termination of the Plan could have an adverse effect on the price of the shares of the Fund. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks to which the Fund is exposed. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty. In order to comply with the requirements of Section 19 of the Investment Companies Act of 1940 and with an exemption order received by the Fund from the Securities and Exchange Commission, the Fund will provide its shareholders of record on each date 19 (a) Notify and issue an accompanying press release disclosing the sources of its distribution payment when a distribution includes anything other than net investment income. This information will be available later this month.

The amounts and sources of distributions shown in Notices 19 (a) are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during its full financial year and may be subject to change depending on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year which will tell them how to report these distributions for federal income tax purposes. Information on the Fund’s 19 (a) notices, if any, can be found at www.vertical-revenufund.com. The final the determination of the source and tax characteristics of all distributions in 2021 will be made after the end of the year.

Closed-end fund stocks often trade at a discount to their net asset value. The market price of the shares of the Fund may vary from the net asset value depending on factors affecting the supply and demand of shares, such as the distribution rates of the Fund compared to similar investments, investors’ expectations regarding future distribution changes, the clarity of the Fund’s investment strategy and return expectations and investor confidence in the underlying markets in which the Fund invests. Shares of the Fund are subject to investment risk, including the possible loss of invested capital. No Fund is a complete investment program and you can lose money by investing in a Fund. An investment in the Fund may not be suitable for all investors. Before investing, potential investors should carefully consider the investment objective, risks, charges and expenses of the Fund. For more details, please visit the Vertical Capital Income Fund website at vertical- Incomefund.com.

This press release contains forward-looking statements relating to the business and financial prospects of Vertical Capital Income Fund which are based on current expectations, estimates, forecasts and projections of the Fund and are not guarantees of future performance. There can be 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 such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this press release.

About the Vertical Capital Income Fund

Vertical Capital Income Fund (VCIF) is a NYSE-listed closed-end fund that seeks monthly income by investing primarily in full agency-free residential real estate loans backed by real estate. As a secondary strategy, the Fund aims to provide a total return by acquiring performing residential loans at a price below the outstanding principal balance (UPB). The VCIF realizes capital gains because the loans are repaid before maturity.

About Oakline Advisors, LLC

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

Fund units are identified by CUSIP 92535C104

SOURCE Vertical Capital Income Fund

Related links

www.vertical-revenufund.com


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