VICTORY Park Capital (VPC) has announced that its fund – VPC Speciality Lending Investments – has broken a new record, delivering a net asset value (NAV) of 1.03 per cent in May.
This represents the fund’s highest monthly NAV return since it launched in 2015, and surpasses April’s return of 0.95 per cent.
The gains were largely driven by the fund’s exposure to balance sheet lending, which contributed 1.06 per cent towards gross NAV return in May. Marketplace loans contributed 0.05 per cent, while securitisation residuals and F/X made a combined loss of 0.1 per cent.
In the monthly fund factsheet, the investment manager said that the positive capital return was largely driven by a “significant valuation increase in a minority equity position, which resulted from a Series B investment into one of our emerging market portfolio companies in Latin America.”
Approximately six per cent of VPC’s portfolio was invested in equities in May, returning 0.14 per cent for the fund.
“During the month, the Company produced strong revenue returns which were broadly diversified across the portfolio of 25 balance sheet deals,” said the fund’s manager. “The portfolio composition was consistent with the prior month. There was no significant portfolio attribution and credit performance remained strong.”
The manager added that VPC had deployed the majority of its remaining uncalled cash in May and is now “nearly” fully invested.
VPC’s gross revenue return was 1.08 per cent in May and the total net revenue return was 0.94 per cent, while capital returns were 0.09 per cent in line with the previous month.
A dividend return of 2p per share was also confirmed for the three months ending 31 March 2018.
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