DALLAS, December 10, 2021 /PRNewswire/ — Vertical Capital Income Fund (NYSE: VCIF) today announced a distribution of $0.1819 per share. This amount is above the minimum required under the Fund’s managed distribution plan (the “Plan”) and is paid to avoid taxation at the Fund level under the US tax code. Part of the cast, $0.1788, represents long-term capital gains. The distribution is payable as follows:
Statement – 12/10/2021
Detachment date – 17/12/2021
Record date – 20/12/2021
Payable – 31/12/2021
Pursuant to the Plan, the Fund pays a minimum monthly distribution to shareholders at an annual rate stated as a percentage of the 3-month average net asset value (“NAV”) of shares in the Fund prior to the month of distribution. The distribution is equal to 8% of the average net asset value of the last three months, divided by 12. The main objective of the plan is to provide investors with constant, but not guaranteed, periodic distributions from the Fund, regardless of when or if the income is earned or capital gains are realized. Distributions under the Plan may consist of (i) net investment income, (ii) net realized short-term capital gains, (iii) net realized long-term capital gains and, to the extent necessary, (iv) return of capital (or other sources of capital). With each distribution that does not consist solely of net investment income, the Fund will issue a notice to shareholders and a related press release which will provide details of the amount and composition of the distribution, as well as certain other related information. The Fund expects to issue such notice and press release on or about the distribution payment date.
The Fund had approximately $5.8 million in cash from November 302021. Approximately $8.4 million was engaged on the same date in the pipeline of acquisitions on loans already granted to the Fund and which were either in due diligence or in due diligence and awaiting closing. Pending acquisitions are subject to various closing conditions, and the Fund cannot guarantee that such acquisitions will be completed.
A new monthly net asset value per share of $11.53 was produced on November 302021. For information on the Fund’s current net asset value per share, please visit the Fund’s website at vertical-incomefund.com.
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 Fund’s distribution rate 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 cause the Fund’s distribution rate to change at a later date. The amendment or termination of the Plan could have an adverse effect on the market 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 epidemic and its effects cannot be determined with certainty. In order to comply with the requirements of Section 19 of the Investment Company Act of 1940 and an exemption order received by the Fund from the Securities and Exchange Commission, the Fund will provide its shareholders of record on each date distribution a 19(a) Notice and issue an accompanying press release disclosing the sources of its distribution payment where a distribution includes anything other than net investment income. This information will be available later this month.
The amounts and sources of distributions reported in the 19(a) notices are estimates only and are not provided for tax reporting purposes. Actual amounts and sources of amounts for tax reporting purposes will depend on the investment experience of the Fund over its full financial year and may be subject to change as a result of tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year which will instruct them how to report such distributions for federal income tax purposes. Information on the Fund’s 19(a) notices, if any, can be found at www.vertical-income-funds.com. The finalthe determination of the source and tax characteristics of all distributions in 2021 will be made after the end of the year.
Shares of closed-end funds often trade at a discount to their net asset value. The market price of shares in the Fund may differ from the net asset value depending on factors affecting supply and demand for shares, such as the distribution rates of the Fund compared to similar investments, investors’ expectations of future distribution changes, the clarity of the Fund’s investment strategy and the return expectations and confidence of investors in the underlying markets in which the Fund invests. The shares of the Fund are subject to investment risk, including possible loss of principal invested. No fund is a complete investment program and you can lose money investing in a fund. An investment in the Fund may not be suitable for all investors. Before investing, potential investors should carefully consider the Fund’s investment objective, risks, charges and expenses. 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 the Fund’s current expectations, estimates, forecasts and projections 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 such 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 release.
About the Vertical Capital Income Fund
The Vertical Capital Income Fund (VCIF) is a NYSE-listed closed-end fund that seeks monthly income by investing primarily in non-agency residential loans secured by real estate. As a secondary strategy, the Fund aims to provide total return by acquiring performing residential loans at a discount to the outstanding principal balance (UPB). VCIF realizes capital gains when 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 adviser specializing in the residential lending market. It is a 100% subsidiary of Dallas, TX-based Behringer. Since its inception in 1989, Behringer, together with its subsidiaries, has raised equity capital of more than $6 billion of 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.
Fund units are identified by CUSIP 92535C104
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SOURCE Vertical Capital Income Fund