Vpc Specialty Lending In... Share Discussion Threads

[waterloo01] 22/12/2022 18:37

Serial downticker. What's your problem

[waterloo01] 22/12/2022 17:47

Indeed see no reason to sell but some good logic to buy. I need to find ANO to put the capital into that's as reliable a divi payer at near 10%. Time to research that over the next months

[creme de menthe] 22/12/2022 17:38

I suppose its not the end of the world, to get back 100p in stages over the next 12 months and receive dividends on the diminishing balances. Uk is entering a 12 month recession, plenty of other opportunities will arise.

[bluemango] 22/12/2022 16:29

I'm out at 85p, proceeds put into the higher yielding DEC.

[scrwal] 22/12/2022 15:34

The Board have probably decided to just say eff it we have been trying to get the discount down and now some holders want more done then we'll give you the ultimate wind down option and see how you like it.

[solarno lopez] 22/12/2022 14:35

Is the asset value really 101.68 per the recent announcement or is it higher as I believe someone mentioned

[williamcooper104] 22/12/2022 11:42

Doesn't make a lot of sense - it's an ordinary level of discount to NAV; especially in this marketIf an activist fund has built a large position then a wind down is probably their best exit, and would likely generate a decent IRR on a relatively quick turn (invested in Prodessa years ago and that's exactly what happened; was liquidised just because a hedge fund couldn't exit their position easily) surprised the BoD is recommending this, clearly not in best interests of all shareholders

[waterloo01] 22/12/2022 10:52

Hard to replace for the income. Don't understand why they couldn't do the occasional capital return rather than folding it altogether

[redhill9] 22/12/2022 09:53

My first thought on reading this morning's news was that the BoD are engaging in the next step in a game of Call My Bluff! In my opinion it will be really disappointing if this winding down happens, and as chucko1 says it could happen quite quickly once started.

I'd been expecting the 25% tender option to go through and had increased my holding accordingly with the assumption I'd hold the residue for the income - I think it will be hard to find a suitable replacement home offering similar yield with similar risk.

[chucko1] 22/12/2022 09:37

This fund has a short average life. Furthermore, as the assets get realised, there will be a point at which the entirety is offloaded lock, stock and barrel. Consequently, the longer life assets should not really determine the end of life for this fund. Therefore, I do not see "several" years as a likely time frame.

That said, I will wait to read with interest the thoughts of the Board on this whole affair, as these wind downs are generally a matter for ALL shareholders and a vote taken.

I do not think it certain that this fund (IT) will actually be wound down. Or if it is, some other structure (LP/GP type fund) will take its place. Unfortunately, that sort of structure may well not be available to the platforms many shareholders rely upon.

Having wound down certain pools of money myself, I have not seen anything quite as unnecessary as this. Or at least as currently presented.

[slightly edited]

[2wild] 22/12/2022 09:12

campervan1 As loans are repaid cash will be distributed to shareholders instead of reinvesting. This will take several years to complete.

[kimboy2] 22/12/2022 09:11

I have invested for the income and couldn't care about any discount. Very disappointing.

[waterloo01] 22/12/2022 09:10

One assumes they would sell of bits of the portfolio or let them wind down with capital returned (quarterly) along with whatever dividend remains.

[campervan1] 22/12/2022 09:03

Yes, very disappointing. But can anyone explain what a "managed wind-down" will actually mean in practice?

[rogerramjett] 22/12/2022 08:45

Value to shareholders is in the dividend. The market never ceases to amaze me. Heavy discount on a solid income share like this. VSL have continued to produce solid returns. I will never understand why the market doesn't value such a business more closely to NAV

[2wild] 22/12/2022 07:50

All the reasons given for not doing the 25% return would equally apply to the manage wind down. And progressively worsen. Don't expect any immediate rise in the share price, may well drift lower over next few months.

[spectoacc] 22/12/2022 07:40

@waterloo01 - over several years, definitely. Assume the divis will keep flowing too.

[waterloo01] 22/12/2022 07:38

I guess we'll get regular capital returns then. Any thoughts on the share price Would have thought it would move closer to NAV

[return_of_the_apeman] 22/12/2022 07:37

"will prudently take steps to wind down VSL over the course of the coming years"

[spectoacc] 22/12/2022 07:25

Agreed, very disappointing.

Large and persistent discounts are a problem if there's no return - eg TFG, the NAV rises but so does the discount, & they even cut the divi - but VPC has always given a clear return in the form of a stonking dividend.

Show me an IT engaged in VSL's business that trades at par or premium - why on earth should it? You know that when you buy.

Sometimes activist shareholders screw things over for the rest of us - ELTA another example.

Think I'd have put it to a vote, with a Board recommendation to continue.

[waterloo01] 22/12/2022 07:18

Indeed, I own it for the income and would find that element hard to replace at this level. Guess the share price should rocket toward NAV in the immediate term?

[brucie5] 22/12/2022 07:14

Well I don't understand the point of a wind down. I'm quite happy to invest at at a steep discount if the returns are there, viz metrics 1&2, including high dividend. Perhaps someone else can explain?