Vpc Specialty Lending In... Share Discussion Threads

[meanreverter] 23/7/2022 16:03

VSL dividend paid by IG on Thursday 21 July.

[jong] 22/7/2022 18:48

I think it's bouncing back now after a big sale has been completed, but what do I know !

Looks like 2.6m shares sold around 15th July which corresponds with the low of 74p.

[dodger777] 22/7/2022 17:06

Do my eyes deceive me ..a 5% day

[edward3] 22/7/2022 09:27

Ta pal I've sent a message.

[cwa1] 22/7/2022 09:06

Hmmmm. Mine in yesterday at ii as well. If they were definitely purchased before XD day then might be worth a quick message to them if it hasn't appeared soon

[edward3] 22/7/2022 08:56

Still not received mine I am with ii

[spectoacc] 21/7/2022 15:51

Ah yes, mine in today in HL too. Love the chunkiness of VSL's divi.

[2wild] 21/7/2022 15:46

Got my 2ps in my interactive Investor account. Reinvested with a bit extra at 76p on 10.5% yield and 30% discount to NAV.

[chucko1] 15/7/2022 15:51

Taking the steady monthly gross revenue (which is expressed based upon an NAV of 110p), this suggests an IRR of 16% at the current buy price of 75p or so.

Given the credit enhancement to their lending and the expertise of the management, and given the fire-drill of the pandemic where they impaired by 6pps but wrote it all back in the past year, this stock has ample margin of safety to a forthcoming US recession.

This recession is regarded as even chances - so not a certainty - and the short duration of the portfolio allows for modifications to their borrower base in any case.

I've never really concerned myself too much with the motivations of sellers as the profits foregone far, far outweigh the odd misstep.

This philosophy has applied to large sell-offs the past year to SUPR (2 or 3 times), SREI (multiple occasions), VSL itself, AEWU and a few others. And especially SLFX (formerly KKVX and SQN before that).

The returns on all sorts of Private Lending funds have been impressive and I see no reason why the best ones will not continue in that manner. It's the Johnny Come Latelys one needs to be sensitive to. This is not one of those.

[cc2014] 15/7/2022 09:19

Well the city boys and girls certainly don't like this one.

Nor do I but every man has his price. Not quite yet there for me but starting to get tempting

[spectoacc] 15/7/2022 08:47

Started catching the knife here.

[spectoacc] 15/7/2022 08:23

Let's hope the answer isn't "mark down the NAV" ;)

[lima666] 15/7/2022 08:22

While I’m disappointed to see the share price slowly grind downwards it does give opportunity to add for an over 10% dividend. Be interested to see what the company does about the every increasing discount.

[rambutan2] 14/7/2022 22:51

Clearly not all folks lack confidence in the strategy:

CHICAGO – June 13, 2022 – Victory Park Capital (“VPC”), a leading global alternative investment firm specializing in private credit, announced today the final close of its latest fundraise for its Asset Backed Opportunistic Credit strategy (the “Fund”). The Fund is oversubscribed at $2.4 billion of committed and investable capital, including separately managed accounts investing alongside the Fund. The strategy seeks to provide customized credit solutions to established and emerging, asset-rich companies with strong growth trajectory.

Limited partners in the strategy include pension funds, financial institutions, insurance companies, endowments, healthcare services, family offices and other institutional investors. In addition to the limited partner commitments, the Fund has secured a term credit facility to strategically complement its investable capital.

The Fund’s senior secured asset-backed strategy is focused on providing privately negotiated credit solutions to both emerging and established middle-market companies across select investment verticals in the U.S. and abroad. The Fund leverages VPC’s longstanding relationships and proprietary channels to source compelling transactions and is often the sole lender.

Of VPC’s recent achievement, Co-Founder and Senior Partner Brendan Carroll said, “Since 2007, VPC has executed a disciplined approach to private credit investing by targeting and structuring investments to generate attractive risk-adjusted returns throughout various market cycles. We are gratified by the strong support shown by the institutional investor community for Victory Park’s strategy.”

Jeff Schneider, Chief Operating Officer and Partner added, “The Fund significantly exceeded its target, reflecting strong investor appetite for Victory Park’s deep asset class expertise, agile investing acumen and culture of risk management. Investable capital in the strategy is over 50% deployed with an exciting pipeline ahead.”

[brucie5] 08/7/2022 16:56

How near does this now come to a corporate bond effectively paying 10%.

[jong] 08/7/2022 16:47

i.e. SIR got taken over by LXI REIT.

[jong] 08/7/2022 16:44

Perhaps a merger with another company like SIR recently.

[campervan1] 08/7/2022 13:39

Being a relative newcomer to ITs, I don't have any experience of "wind ups". How do they work and how is the offer price to us share holders calculated?

[scrwal] 08/7/2022 13:00

If the price continued to drift downwards and the discount increased to say 30% I wonder whether the board actually "gives up" and puts forward a motion to wind things up next year since anything they do to reduce the discount hasn't worked. This scenario is probably unlikely but you never know.

Obviously the discount when covid hit was very high but that was a one off , the current situation is the normal ongoing one.

[spectoacc] 08/7/2022 11:29

US recession fears maybe. Nothing good happening to discount so far, whatever they say!

[campervan1] 08/7/2022 10:50

Are people nervous of this perhaps:

THE COMPANY’S SHARES
The Board takes the view that the typical discount to NAV at which our Company’s shares trade is too high and this has obvious disadvantages to the Company. Shareholders are unable to fully realise the underlying value of their holdings, while the Company is unable to raise additional equity capital to take advantage of attractive lending opportunities in the market.
As noted in last year’s Annual Report, in 2020 as part of the Continuation vote, the Company will offer an exit opportunity where the Company will buy back up to 25% of the shares in the Company should they trade at an average discount greater than 5% over the first quarter of 2023. As things currently stand, that exit opportunity is likely to be offered and all shareholders will be notified in due course should this continue to be the case. In the meantime, taking action to reduce the discount to NAV is a priority for the Company, and various steps are being taken towards achieving that goal. In the meantime, the discount ought to be helped by our strong and consistent investment performance, backed by active risk management, by our ability to demonstrate that to existing and potential shareholders, and to market the shares actively.

[peckers56] 08/7/2022 10:46

At the AGM, the board and manager (and, surprisingly, the auditor) seemed quite confident.

[campervan1] 08/7/2022 10:20

From the 2021 annual report:
- all interest payments received on time.
- 2021 paid 8p dividend fully covered.
- 8p dividend continues to be long term target.

[solarno lopez] 08/7/2022 10:05

Are the assets that support the 10% yield good assets ?

[campervan1] 08/7/2022 09:58

Just what I was wondering. No obvious reason. Any clues anyone before I dive in for that 10% yield?!