DALLAS, September 10, 2021 / PRNewswire / – Vertical Capital Income Fund (NYSE: VCIF) today announced a distribution of $ 0.0788 per share in accordance with the Fund’s managed distribution plan (the “Plan”), payable as follows:
Statement – 9/10/2021
Departure date – 09/17/2021
Recording date – 20/09/2021
Payable – 09/30/2021
Under the Plan, the Fund pays a minimum monthly distribution to shareholders at an annual rate determined as a percentage of the three-month average net asset value (“NAV”) of the shares of the Fund prior to the distribution month. The distribution is equal to 8% of the average net asset value of the previous three months, divided by 12. The main objective of the plan is to provide investors with consistent, but unsecured, 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) a 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 an accompanying press release which will provide detailed information regarding the amount and composition of the distribution, as well as certain other related information. The Fund expects to issue such notices and press releases around the distribution payment date.
The Fund had approximately $ 1.6 million in cash from August 31, 2021. Approximately $ 6.5 million was committed on the same date in the acquisition pipeline on loans which have already been granted to the Fund and were either in due diligence or in due diligence and awaiting closure. Acquisitions in progress 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 $ 11.76 was produced on August 31, 2021. For more information on the current net asset value per share of the Fund, please visit the Fund’s website at vertical-revenufund.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 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-revenufund.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
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SOURCE Vertical Capital Income Fund