VICTORY Park Capital Specialty Lending (VSL) is expecting to recommence payment of performance fees to its investment manager in the coming months, after an improvement in net asset value (NAV) returns.
In its latest monthly report, released on Friday, the alternative finance-focused fund reported a total NAV return of 1.15 per cent in July.
In May, VSL posted a record NAV return of 1.03 per cent – the highest figure since its fruition in March 2015 – and has now posted NAV returns above one per cent for three consecutive months.
VSL’s investment manager, Victory Park Capital Advisors, will be paid performance fees conditional on the fund achieving an annual return of at least five per cent.
Last month, VSL recorded its strongest quarterly return to date – a total NAV return of 3.37 per cent, boosted by its exposure to balance sheet loans.
“We believe the portfolio and its outlook are very positive for the remainder of the year,” the fund said at the time.
VSL has been pivoting its portfolio towards balance sheet loans and away from marketplace lending over the last two years after capital losses within its marketplace investments led to substantial writedowns.