VICTORY Park Capital (VPC) Specialty Lending has reported record quarterly revenue returns for the first quarter of this year, boosted by its balance sheet investments.
The alternative finance-focused investment fund said it generated a gross revenue return on balance sheet investments of 2.96 per cent and a total net revenue return of 2.69 per cent.
Its capital return for the quarter was down 1.75 per cent, which gave VPC a total net return of 0.94 per cent for the quarter.
Meanwhile, the fund reported that in March the gross revenue return from balance sheet investments was one per cent while total net revenue return was 0.89 per cent.
VPC’s cumulative net asset value on stood at £330.3m at the end of March 2018.
“This quarter proved to be strong for both revenue returns and deal flow,” VPC said.
“Credit remains strong across our portfolio and the vast majority of the book continues to benefit from significant first loss protection via subordinated equity and debt inside our SPVs.
“We carried elevated levels of cash during this quarter, but were able to continually invest in new and existing deals.
“Looking forward, we expect to be fully invested in the near term. Overall, we continue to remain optimistic about the portfolio and its returns for the remainder of the year.”
The investment trust is currently trading on a discount to net asset value of 12.2 per cent.